The Cayman Islands Monetary Authority have issued a Statement of Guidance for Mutual Funds applicable to all CIMA registered Hedge Funds.

The Statement of Guidance can be found HERE.

Q. What is the particle impact of a hedge fund board of directors?

A. The main requirements are:

- A minimum of Two Board Meetings per year are required.

- Directors should seek confirmation from all service providers on an ongoing basis (at least at the two annual meetings) that the delegates are providing the services in accordance with their agreements.

- The directors should specifically ensure that the investment manager is managing the portfolio of the hedge fund in accordance with the described strategy and any restrictions detailed in the Offering Document.

- There is now a requirement to inform CIMA of any material facts effecting the operation of the fun not just updates to the Offering Document

-  The directors have a positive duty to ensure that the Offering Document clearly discloses to the investors all material facts and the investment objective.

July 2014