Cayman News Service Reports:
As a clearer time frame for new international regulations for hedge funds finally emerges, the implications for the industry in Cayman are positive, according to industry experts. During a panel discussion at this week’s GAIM Ops 2011 conference, members discussed the implications of the new regulatory landscape for the hedge fund industry and looked at two specific pieces of proposed legislation: America’s Dodd-Frank Act and the European Union’s Alternative Investment Fund Managers Directive (the AIFMD).
Michael G Tannenbaum, co-founder & partner with US lawyers Tannenbaum Helpern Syracuse & Hirschtritt, moderated the panel discussion at the specialist conference currently underway at The Ritz-Carlton, Grand Cayman and said that America’s Securities and Exchange Commission (SEC – the entity tasked with creating the new Dodd-Frank rules) would have the legislation finalised by 21 July of this year, with a most likely implementation date of the end of the first quarter of 2012.
The AIFMD, on the other hand, would not properly have any impact until 2015, according to panellist speaker Ingrid Pierce, Partner and Head of Cayman Hedge Fund Practice at Walkers.
The Dodd-Frank Act will impact hedge fund managers as the rules will change as to when a hedge fund manager will have to register with the SEC. Those US hedge fund managers who want to sell their products to European investors will also be affected by the AIFMD as they will be required to comply with the new directive.