Mr Jude Scott, CEO of Cayman Finance said the Cayman Islands financial services industry welcomed the Cayman Islands limited liability company (LLC) regime which became operational, following the 8 July publication of the Limited Liability Companies Law, 2016 (Commencement) Order 2016, and the publication of underlying related regulations.
“This new LLC law will give our industry a competitive advantage in the international market and enhance the critical role we play in the global economy,” Mr Scott said. “It is the most recent example of Cayman’s constant focus on evolving our industry to anticipate and meet the ever-changing needs of our clients.”
“The success of those efforts demonstrates why the Cayman Islands is by far the largest domicile for global offshore alternative investment funds – home to over 11,000 regulated investment funds, many thousands of private equity funds and international commercial asset financing transactions, with the world’s top managers using Cayman Islands vehicles in their structures.”
According to the Cayman Islands Ministry of Financial Services, the new Cayman LLC is similar to a Delaware limited liability company. It is a business vehicle with separate legal personality, like a Cayman Islands exempted company, but with certain features and flexibility akin to a Cayman Islands exempted limited partnership – including, with reference to the nature of a member’s interest in an LLC, the manner in which accounts are maintained and with parties having substantial freedom of contract amongst themselves to determine the LLC’s governance and other internal workings.
“The Cayman Islands financial services industry’s collaborative relationship with government supports continuous enhancements to our legal infrastructure to create innovative new products and services like the Cayman LLC,” Mr Scott said.
“We are proud to have worked with the Cayman Islands Ministry of Financial Services to make the Cayman LLC a reality and now look forward to working with industry customers to make it a success.”