Cayman Gov’t to develop new regime for corporate restructuring
Cayman Islands Financial Services Minister Tara Rivers has announced the Government’s intention to create a new corporate restructuring regime by year end.
“The ministry is making great strides in finalising commercial enhancements to the Companies Law. These enhancements, which will introduce a new restructuring officer regime, have been met with strong support and agreement from industry, the judiciary and [the Cayman Islands Monetary Authority], acting in their respective roles” Rivers was quoted in the Cayman Compass.
She was speaking at the digitally-hosted Chamber of Commerce Economic Forum held recently.
Corporate restructuring refers to the action taken by a corporate entity to significantly modify the structure or the operations of the company. This usually happens when a company deems it necessary to make financial adjustments to its assets and liabilities.
Once passed and enacted, these amendments will allow companies to petition and pursue restructuring without the intent of winding up the company. However, companies will retain the benefit of having a statutory moratorium obtained during the restructuring, and they will maintain the ability to petition for provisional liquidators, Rivers said.
“Importantly, this can have a positive economic impact on Cayman given the potential increase in global restructuring as a result of the global economic conditions,” she added.
The minister also highlighted the progress made to address the European Union (EU) list of non-cooperative jurisdictions for tax purposes, and the Financial Action Task Force re-rating of Cayman’s anti-money laundering, countering the financing of terrorism, and counter proliferation financing regime.
She noted in the past three-and-a-half years, the ministry had prepared approximately 125 pieces of financial-services legislation. That represented 27 per cent of the total legislation passed during this time. In addition, legislation with financial-services touch points had been prepared by other entities, including the attorney general’s chambers.
This included the enhancement of the regulatory structures governing investment funds and oversight of private funds by the regulator. As of August 7, 12, 328 private funds have registered with the Cayman Islands Monetary Authority.
