Establishing a Best-in-Class Governance Framework for Cayman Funds (Part One of Two)

This article first appeared in Hedge Fund Law Report.

Over the past two decades, the role of professional independent directors in the alternative investment funds industry in the Cayman Islands has greatly evolved. The evolution has accelerated following major high-profile fraud cases; significant changes in US and global economic cycles; and growing demand by regulators and investors alike for better governance and increased independent oversight of the management and administration of investment funds.

When establishing a best-in-class governance framework, it is essential to review and consider several key resources in addition to investor and allocator expectations and demands, together withe market and industry trends and best practices in governance.

In a two-part guest series, Director and General Counsel, Sabrina Foster, explains how to establish a best-in-class governance framework for Cayman funds. This first article covers board selection and composition, along with on-boarding directors. The second article will review board meetings, service provider reports and board self-assessments.

To read and download Part One, please click the image below. To read Part Two, please click here.