The memorandum of understand (MoU) covers the consultation, cooperation, and exchange of information of firms under the alternative investment fund managers directive (AIFMD).
The EU question
AIFMD is a European directive, covering managers of all variety of collective investment undertakings (other than Ucits) ranging from securities funds to funds investing in illiquid assets (real estate, private equity, infrastructure or goods such as wine or art).
Gibraltar, which access the EU via its close ties with the UK, voted overwhelmingly against the leaving the union.
How long the MoU between Gibraltar and the Cayman Islands is valid depends on what is agreed when the UK invokes Article 50 and begins negotiations to leave the union.
Until that time, Gibraltar and the UK are bound by EU law and must continue operating as such.
Effective consumer protection
Speaking about the agreement with Cima, Samantha Barrass, chief executive of the GFSC, said: “The GFSC enjoys a close working relationship with Cima, and the signing of this MoU represents a commitment to further communication and regulatory cooperation.”
Albert Isola, minister responsible for Gibraltar’s financial services, said: “Entering into this MoU with Cima highlights the steps that are being taken to enhance communication between the supervisors of two leading international finance centres.
“Increased communication between regulators is key to providing effective consumer protection,” Isola said.
Cindy Scotland, managing director of Cima, said: “Europe is an important market for Cayman hedge funds. The fact that our continuing efforts to secure MoUs with our European counterparts are bearing fruit is a source of satisfaction.
“We are pleased to add the GFSC to the list of European counterparts with whom we have such agreements.”