A new law that makes improvements to the establishment and operation of exempted limited partnerships in the Cayman Islands is now in effect.
The Exempted Limited Partnerships Law, (2014) came into force following its gazetting on July 2.
“The new law builds upon the success of the Exempted Limited Partnership Law that had been in place since 1991,” Minister of Financial Services Wayne Panton said. “It improves the current legislative framework by addressing numerous points raised by the international financial services industry, resulting in a better, modern framework for Cayman Islands partnerships.”
The new law provides more flexibility in the types of partnerships that can be formed. It provides for the registration, licensing and regulation of exempted limited partnerships and also updates certain provisions to reflect the laws governing exempted limited partnerships in other jurisdictions.
In addition to bringing the law more closely in line with Delaware law so that general partners can offer their U.S. and offshore investors more closely aligned products, the amendments offer more flexibility in the way the partnership can operate.
During the debate of the amendments in the Legislative Assembly, Mr. Panton said the changes to the law were driven by demands from private equity funds as the most frequent users of exempted limited partnerships. The law changes are hoped to address the evolving complexity of transactions and ensure flexibility and certainty.
Minister Panton also said the law is an example of government and Cayman’s financial services industry working well together.
“The expertise in both the public and private sectors, and our strong collaboration on legislative advancements, continues to provide an excellent base for business in the Cayman Islands,” he said.