Update BRP Country Manual Asset Management
Cayman Islands
BRP has published its latest update concerning
the Country Manual Asset Management
for Cayman Islands
| SOURCE OF CHANGES | ANSWERS |
|---|---|
| Law/Regulation | No |
| New Position of the Authorities | No |
| Evolution of Expert’s interpretation | Yes |
Definitions & Concepts, Regulatory Overview and Behaviour Template
Material changes
The changes/modifications are as follows:
Finally, the (indirect) marketing and introduction of investment services and mandates (such as discretionary mandates and advisory services) via/with locally licensed intermediaries/distributors is now also permitted if the Company will then provide such services from outside the Cayman Islands.
It is highlighted that generic marketing activities (without mentioning specific information about strategies, financial products and/or investment services) are now generally permitted if conducted on a cross-border basis (e.g. via remote means of communication) into the Cayman Islands, as they are generally do not constitue “carrying on business” in the Cayman Islands.
As a result, brand advertising (without mentioning specific information about strategies, financial products and/or investment services), the provision of general information/marketing material about the Company as well as macroeconomic analysis and financial research, via remote means of communication into the Cayman Islands (remote) is now permitted. The Country Manual Asset Management Behaviour Template (CM AM BT) therefore now provides the answer “YES” in the relevant scenarios.
In addition, the marketing of investment strategies as well as the marketing and introduction of investment services and mandates (such as discretionary mandates and advisory services) are now also only permitted (without restrictions) if they are (directly) conducted on a cross-border basis into the Cayman Islands (remote). The CM AM BT therefore now provides the answer “YES” in the relevant cross-border scenarios.
In contrast, the conduct of road shows is not permitted in the Cayman Islands (at target) as it is demmed to be “carrying on business” in the Cayman Islands, whether performed directly by the foreign (non-licensed) investment firm or conducted indirectly via/with locally licensed intermediaries/distributors. Accordingly, the CM AM BT now provides the answer “NO” in the relevant onshore scenarios.
Although the concept of “reverse solicitation” is not yet formally recognized in the Cayman Islands, transactions and investment services requested on the client’s own initiative are still permitted. However, the marketing of funds or structured products based on “reverse solicitation” should be limited to a group of persons (particularly sophisticated persons or high net worth individuals) in order not to amount to a “public offer”. The CM AM BT therefore now provides the answer “Grey zone/YES – In relation to the marketing of products: Permitted to a limited group of persons (particularly sophisticated persons or high net worth individuals)” in all relevant scenarios.
Non-material changes
Some comments and content have been slightly reworded in the CM, without introducing substantive changes to reflect the regulatory situation/current interpretation of the regulatory framework more accurately.
For more information, please contact us: info@brpsa.com
Geneva, January 28th, 2025