How strict should directorship regulation be in Cayman?
As in the hedge funds industry the demand for independent directors grows, there is increasing debate on directorship regulation. It is debated how much control is appropriate for directors and whether the hedge funds industry can oversee itself.
According to experts, the rising demand for independent directors has been driven partially by investors who call for good corporate governance. Investor confidence has been recently and is continuing currently to be hurt by recent corporate failures. Independent director professionals suggest that the industry has to be proactive in maintaining the Cayman islands’ reputation as a successful jurisdiction for hedge funds.
The Cayman Islands Directors Association (CIDA) was formed in April and this means that the maturation of the emerging industry of independent directors is in process. The CIDA aims at promoting a code of conduct for the profession.
Although the Cayman Islands Monetary Authority (CIMA) does not specifically oversee directors, many professionals providing services of company manager, offshore mutual fund administrator, trust company or insurance company are already regulated.