Following meetings with EU representatives on Thursday 10 June, Premier
McKeeva Bush has vowed to install a Cayman representative in Europe.
was “evident” that Cayman must have a representation in Brussels, Mr. Bush
said: “I intend to make that happen by December.”
A Cayman delegation led by Mr. Bush met with Michel Barnier, the
European Commissioner for Internal Market and Services, to speak about Cayman’s
compliance with potential provisions in the planned European Union’s
Alternative Investment Fund Manager Directive.
Two separate drafts of the directive have been passed by the EU
Parliament and the EU Council of Ministers. The drafts now need to be combined
into a single draft in negotiations between EU Commission, EU Parliament and EU
Council before a final vote on the AIFM directive in July.
Funds registered in the Cayman Islands may be affected by proposed
marketing restrictions within the European internal market for non-EU based
The EU Parliament’s draft suggests a passport system under which
external funds would have to comply with certain regulatory oversight and
anti-money laundering standards to be able to market to European investors. It
would also require that the home jurisdiction of the fund has regulatory and
tax information exchange agreements in place with relevant non-EU and EU
Mr. Bush believes that the Cayman Islands are already compliant with
what has been proposed. “With our regulatory regime and the work of the private
sector on this matter we will be able to ride this out,” he said.
Specifically with regard to the meeting in Brussels, Mr. Bush said: “I
think we have got the best of a bad situation. While this directive does impact
the Cayman Islands, they have all promised, particularly Mr. Barnier, a level
playing field for these regulations.
“Obviously Mr. Barnier understands what he is dealing with and he will
be firm but fair. So this bodes well for the Cayman Islands,” Mr. Bush
Mr. Bush noted that this will mean that the Cayman Islands has to sign
more tax information exchange agreements with relevant European countries.