On Friday June 10, 2011, Premier McKeeva Bush announced that certain "master funds" that are currently unregulated would fall under the scope of new regulation, with a charge of CI$1,500 (US$1,800) being levied in relation to the registration of the master funds.
Premier Bush stated in his address to the Legislative Assembly of the Cayman Islands: “[In] the hedge funds sector, certain ‘master funds’ will be regulated by the Cayman Islands Monetary Authority ( CIMA )—just as they are regulated in other jurisdictions—and those funds will be required to pay a very modest fee of one thousand five hundred dollars ( CI$1,500 ) per year.”
The full scope of the new regulations are to be debated further and the current timing of the implementation is as yet unknown. It is expected that the new regulations will apply to master funds which are currently out of scope of regulation by virtue of section 4(4) of the Mutual Funds Law of the Cayman Islands (MFL) and which have "feeder funds" registered by CIMA under the MFL. It is understood that the new regulations will not apply to private equity style closed-ended funds.