Loeb Smith Attorneys on LinkedIn: #bvi #legalinsights #companylaw #assetsmanagement #finance #fundfinance (2024)

Side-letter perspectives in Cayman subscription financingThe subscription finance market has grown substantially in recent years, driven by growth of private capital funds (including private equity, credit and real estate) and the funds’ wider adoption of subscription facilities (also sometimes called capital call facilities, or sub lines). Subscription financing or sub lines are loans taken out by private capital funds that must be repaid over a period of time. These lines are backed by limited partners’ committed capital to the fund with an interest rate range depending on the size of the sub line, time of repayment, and the limited partners invested in the fund. One of the key benefits of these sub lines to the fund is to provide faster liquidity for the fund (e.g. with a drawdown within a business day or two) than a capital call from the fund’s investors might yield (drawdown from capital calls served on investors usually take 10 business days or more).Read full article here: https://lnkd.in/dexsgMMUFollow us for more legal insights.#investmentfunds #fundsmanagement #financeinsights #privatecapital #privateequityfunds

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The Cayman Islands Chapter of the Panoramic Cryptoassets & Blockchain Guide for Lexology, co-authored by Loeb Smith Attorneys' Gary Smith and Max Lee provides valuable insights into the legal and regulatory frameworks surrounding #cryptoassets and #blockchain technologies in the #Cayman Islands.This comprehensive guide includes jurisdictional comparisons, local insights, and up-to-date information on laws and regulations impacting cryptoasset investment, financing, #trading, payment, and mining. It also covers blockchain and other distributed #ledger technologies, and recent trends in the space. Access it here: https://lnkd.in/dV45SsyHFollow us for more legal insights.#digitalassets #cryptoassets #blockchaintechnology #investmentmanagement #offshorelaw

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GDPR and the Cayman Islands’ Data Protection Act, 2021 – a comparisonThe EU’s General Data Protection Regulation (“GDPR”) applies to offshore investment funds with European investors. The #CaymanIslands Data Protection Act, 2021 (“DPA”), regulates the processing of all personal data. Inspired by the UK’s Data Protection Act, the #DPA includes provisions very similar to GDPR (together “Data Protection Laws”), with certain notable differences. Members of our team share their view on the above and you can access it here: https://lnkd.in/g5aCcHCS#GDPR #gdprcompliance #FundsAndAssetManagement #offshorefunds

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The Virtual Assets Service Providers Act, 2022(the “VASP Act”), in the British Virgin Islands (“BVI”) which came into effect on 1 February 2023 creates the legal framework for the registration and supervision of Virtual Assets Service Providers (“VASPs”) operating in and from within the #BVI. The #VASP Act describes the activities that require registration through the definitions of key terms such as virtual assets, virtual assets service and VASPs. For clarity, activities that do not qualify as virtual assets services have also been outlined in the VASP Act.Check the services specifically excluded from the application of the BVI VASP Act in the video on this link:https://lnkd.in/d3Xriwf5#digitalassets #digitalassetmanagement #funds #blockchain #web3

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Cayman Islands Monetary Authority publishes AML/CFT Activity Report for 2022The Cayman Islands Monetary Authority (“CIMA”) has recently published its annual AML/CFT Activity Report for 2022 and there are a few points worth noting. Members of our team share their analysis and you can also check the report on this link: https://lnkd.in/dvrnNkivFollow us for more updates.#amlcompliance #CFT #cayman #activityreport #InvestmentTrends

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#cryptoassets #cryptoregulation #blockchaininsights #blockchain #caymanislands

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Legal Insight: Avoiding #BVI law and Cayman Islands law pitfalls in banking & finance and corporate transactionsThere are certain notorious pitfalls to avoid in the context of British Virgin Islands (“BVI”) and #Cayman Islands banking & finance and corporate transactions. In this article, we examine five such pitfalls. While there are no “one size fits all” solutions to these issues, we set out some practical considerations, solutions and risk mitigation tools (as appropriate) with respect to them.Read article on the link below: https://lnkd.in/dzSZTW2Y#corporatefinance #bankinglaw #corporatelaw #backdating #assetdisposals #stampduty

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SFC in Hong Kong reprimands and fines Hong Kong manager for fund management failures in respect of a Cayman Islands incorporated fundOn 5 February 2024, the Securities and Futures Commission in Hong Kong (“SFC”) published a Statement of Disciplinary Action, which found that PICC Asset Management (Hong Kong) Company Limited (“PICC”), a corporation licensed to carry on Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (“SFO”), was guilty of misconduct for failure to discharge its duties as the manager of a Cayman Islands incorporated fund (“Fund”) under the Fund Manager Code of Conduct and the Code of Conduct for Persons Licensed by or Registered with the SFC. PICC was publicly reprimanded and fined HK$2.8 million by the SFC. In particular, the SFC found that PICC had failed to:(a) properly manage the Fund to ensure that the Fund’s investments were in line with its stated investment objective and investment restrictions; (b) implement adequate and effective internal controls to properly manage the risks of the Fund; and (c) adequately supervise the investment manager who managed the Fund on behalf of PICC.Continue reading here: https://lnkd.in/dt5XA8qf#assetmanagement #securities #futures #fundmanagers #funds #hongkong

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Creation of a security interest by a Cayman Islands exempted company and registering it in the Cayman IslandsCayman Islands exempted companies (“Cayman Companies” and each a “Cayman Company”) are widely utilized in structuring cross-border finance transactions. One of the key reasons for this is that the Cayman Islands provides a flexible and well-tested regime for secured financing transactions that is attractive to borrowers and lenders alike. The process for creating security in the Cayman Islands is also straightforward and will not typically impact the timeframe of a proposed transaction.In this Briefing, we address certain of the key Cayman Islands law points pertaining to the creation and protection of security by a Cayman Company over its assets. For details with respect to the creation of security over Cayman Islands shares, please refer to our separate guide entitled “Granting and protecting security over shares in a Cayman Islands exempted company”.Read full article here: https://lnkd.in/dndFVbbmFollow us for more legal insights.#Caymanlaw #offshorecompany #financeeducation #financeinsights

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