Loeb Smith Attorneys is pleased to announce that our team has been recognized for outstanding client service at HFM Asia Services Awards 2024 after being shortlisted for the second year in a row

“Best offshore law firm – client service” accolade highlights Loeb Smith Attorneys’ demonstrated exceptional client service, innovative product development, and strong and sustainable business growth over the past 12 months. The judging panel was made up of leading hedge fund COS, CFOs, CCOs, GCs and CTOs to ensure that the Awards recognized those driving up service standards across the hedge funds service providers sector.

With offices in the British Virgin Islands, the Cayman Islands and Hong Kong, Loeb Smith Attorneys has been nominated for numerous awards over the years and has achieved high rankings in legal directories.

Special thanks to our much-valued clients and partners as their continuous support and trust in us are the key reasons for our achievement. This achievement is another testament to our team’s expertise and Loeb Smith Attorneys’ commitment in Asia.

About Loeb Smith Attorneys

Loeb Smith Attorneys is one of the leading offshore corporate law firms considered one of the most active and knowledgeable firms for advising on offshore investment funds formation and launch of all asset classes including public securities, private equity, venture capital, real estate, and virtual assets. Other areas of strength and growth are advising on M&A, Finance, Corporate Restructurings, Capital Markets, Regulatory Compliance, Investments, Logistics, Shipping and Aviation.

Considered a leading law firm in the Fintech and Blockchain Technology space, Loeb Smith also advises on token issuances, application for VASP licences for Web 3.0 businesses, Metaverse infrastructure and other virtual asset service providers, and utilising Cayman and BVI structures to develop virtual asset platforms for DAOs. Loeb Smith’s clients are investment managers, financial institutions, onshore counsels, and HNWIs who the firm advises on day-to-day legal issues and complex, strategic matters.

Some of our firm’s recent accolades are: winning Leading Firm in Client Satisfaction 2024 award by Legal 500; ranked in Investment Funds category and listed as one of the Firms To Watch for Corporate & Commercial by Legal 500 in 2024; named as Recommended Firm by IFLR 1000 from 2021 to 2024; named in Offshore Client Choice List by Asian Legal Business from 2021 to 2023; ranked amongst Top 30 Asia’s Fastest Growing Law Firms by Asian Legal Business in 2023 and 2024; ranked in The A-List: Top Offshore Lawyers by Asia Business Law Journal in 2022 and 2024; named as one of the ALB Hong Kong Firms to Watch 2024; winning Best Law Firm – Fund Domicile at Hedgeweek US Emerging Manager Awards 2023 and 2024; winning Best Law Firm – Fund Domicile at Private Equity Wire US Emerging Manager Awards 2023 and 2024; winning Best Law Firm – Fund Domicile at Private Equity Wire US Awards 2023; and winning The Best Offshore Law Firm – Client Service at With Intelligence HFM Asia Services Awards 2024.

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www.loebsmith.com
BRITISH VIRGIN ISLANDS | CAYMAN ISLANDS | HONG KONG

 

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Loeb Smith Attorneys is pleased to announce that Gary Smith has been recognized again as one of the top-rated practising offshore lawyers by the prestigious Asia Business Law Journal’s A-List of top offshore lawyers.

The A-List: Top Offshore Lawyers is based on interviews with thousands of in-house counsels in Asia and partners at international and onshore law firms in the region.

Gary Smith is Head of the Firm’s Investment Funds Group and is known for his ability to deliver pragmatic and well-thought-through solutions to complex technical issues. He advises on Cayman Islands & BVI investment funds, private equity investments, M&A, fintech, blockchain & virtual assets transactions, corporate, and corporate finance and is regularly praised by clients in international legal directories for his “strong client-relationships and is highly regarded by sources in North America and Asia” and “his knowledge impresses me and his creativity is very good. He is also very patient and intelligent”.

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Overview

Edmond was admitted as a solicitor in the British Virgin Islands in 2022. He joined Loeb Smith’s Hong Kong office in 2024 as a Senior Associate in the Litigation and Insolvency team. His practice areas include international commercial litigation, insolvency proceedings and trust disputes. He speaks English, Cantonese and Mandarin.

Before joining Loeb Smith, he was based in the British Virgin Islands with another offshore law firm. Prior to that, he qualified as a solicitor in England and Wales in 2016 and was based in London.

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Frost is an Associate in the Corporate and Funds Groups of Loeb Smith’s Hong Kong office. Frost specialises advising on corporate transactions including IPOs, M&A, private equity transactions, and series financings, and also on the formation and launch of both Cayman Islands and BVI funds of all asset types (e.g. hedge, PE, VC and crypto) and regulatory compliance matters. Frost also advises on digital assets matters including VASP license application, DAO and foundation company structuring, digital asset focused funds, digital token issuance and regulatory compliance matters. Prior to joining our Firm, Frost was an Associate of an international law firm in Hong Kong.

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Overview

Gary is a Partner in, and leads/coordinates, the firm’s Investment Funds Group. He worked as a Private Equity/M&A attorney in England for many years before moving to the Cayman Islands in 2009 to work as a Corporate/Investment Funds attorney.

Chambers & Partners Global has ranked Gary Smith in the top tiers of Investment Funds lawyers in the Cayman Islands and he is described by sources as: “a bright guy, a team player, and a hard worker” (Chambers 2014) and appreciated for maintaining “strong client-relationships and is highly regarded by sources in North America and Asia” (Chambers 2017). “his knowledge impresses me and his creativity is very good. He is also very patient and intelligent” (Chambers 2018)

Experience

Gary has the following experience and expertise:

  • Gary has given expert evidence in the United States Federal Bankruptcy Court Southern District of New York relating to Cayman investment funds. He has also authored a wide range of articles and other publications on Cayman Islands and BVI law matters, including: “Fund Management – Cayman Islands” published by Lexology, 2021/2022;  and “Cayman Islands – Cryptoassets and Blockchain” published by Lexology, 2024. In 2022, he was ranked in Asia Business Law Journal’s A-List of the top offshore lawyers. The list is based on extensive research conducted and nominations received from in-house counsel in Asia, and Asia-focused partners from domestic and international law firms. https://law.asia/the-a-list-top-offshore-lawyers-2022/. He is ranked in IFLR1000 as “Highly Regarded” for in the Practice Area of Investment Funds.
  • Gary’s practice focuses principally on (i) Cayman Islands and BVI Investment Funds formation and launch, particularly hedge funds, private credit funds, private equity funds, venture capital funds, and funds investing in digital assets, (ii) M&A including Privatisations, (iii) Capital Markets including IPOs, SPACs, De-SPACs, and ongoing advisory, (iv) Corporate including joint ventures,  and PE/VC portfolio investments. He provides Cayman Islands law and BVI law advice to large corporates, companies, investment fund managers, allocators, sponsors, in-house counsel, onshore counsel, high net worth individuals, banks, and insurance companies in Asia (including the Middle East) and the Americas (U.S. Canada, Brazil, Argentina and elsewhere in Latin America) to deal with day-to-day legal issues and complex, strategic matters.

 

Articles Written by Gary

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Loeb Smith Attorneys is pleased to announce that our Investment Funds team has won the “Best Law Firm – Fund Domicile” category at the Hedgeweek US Emerging Manager Awards 2024 for the second year in a row.

The awards recognise fund performance and service provider excellence within hedge fund emerging managers and were presented at an exclusive ceremony and networking event today, 6 June, at Convene 101 Park Avenue, New York. The pre-selection data for the fund manager shortlist was provided by Bloomberg. Congratulations to all winners: https://www.hedgeweek.com/hedgeweek-announces-winners-of-us-emerging-manager-awards-2024/

With offices in British Virgin Islands, Cayman Islands and Hong Kong, Loeb Smith advises on a comprehensive set of investment fund areas including Hedge Funds, Private Equity Funds, Venture Capital, Infrastructure Project Funds, Tokenized Funds, Real Estate Funds, Distressed Funds as well as other asset classes. Contact us to find more about our services.

About Loeb Smith Attorneys

Loeb Smith Attorneys is one of the leading offshore corporate law firms considered one of the most active and knowledgeable firms for advising on offshore investment funds formation and launch of all asset classes including public securities, private equity, venture capital, real estate, and virtual assets. Other areas of strength and growth are advising on M&A, Finance, Corporate Restructurings, Capital Markets, Regulatory Compliance, Investments, Logistics, Shipping and Aviation.

Considered a leading law firm in the Fintech and Blockchain Technology space, Loeb Smith also advises on token issuances, application for VASP licences for Web 3.0 businesses, Metaverse infrastructure and other virtual asset service providers, and utilising Cayman and BVI structures to develop virtual asset platforms for DAOs. Loeb Smith’s clients are investment managers, financial institutions, onshore counsels, and HNWIs who the firm advises on day-to-day legal issues and complex, strategic matters.

Some of our firm’s recent accolades are: winning Leading Firm in Client Satisfaction 2024 award by Legal 500; ranked in Investment Funds category and listed as one of the Firms To Watch for Corporate & Commercial by Legal 500 in 2024; named as Recommended Firm by IFLR 1000 from 2021 to 2024; named in Offshore Client Choice List by Asian Legal Business from 2021 to 2023; ranked amongst Top 30 Asia’s Fastest Growing Law Firms by Asian Legal Business in 2023 and 2024; ranked in The A-List: Top Offshore Lawyers by Asia Business Law Journal in 2022 and 2024; named as one of the ALB Hong Kong Firms to Watch 2024; winning Best Law Firm – Fund Domicile at Hedgeweek US Emerging Manager Awards 2023 and 2024; winning Best Law Firm – Fund Domicile at Private Equity Wire US Emerging Manager Awards 2023 and 2024; winning Best Law Firm – Fund Domicile at Private Equity Wire US Awards 2023; and winning The Best Offshore Law Firm – Client Service at With Intelligence HFM Asia Services Awards 2024.

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Fireside chat with Edmond Fung

Fireside chat with Edmond Fung, Senior Legal Manager (pending registration as a Senior Associate with the Hong Kong Law Society) in Loeb Smith’s Hong Kong office advising on Litigation, Commercial Disputes and Insolvency in respect of British Virgin Islands law.

Edmond Fung is a Senior Legal Manager (pending registration as a Senior Associate with the Hong Kong Law Society) in the firm’s Hong Kong office advising on Litigation, Commercial Disputes and Insolvency in respect of British Virgin Islands (“BVI”) law. We have invited him to provide some background to himself, his practice, and his insight on recent market developments and trends in the legal market.

Loeb Smith (“LS”): Edmond, could you provide a brief overview of your current practice?

EF: I advise on international commercial litigation, restructuring and insolvency as well as trust matters. I act for clients from all over the world and they range from onshore law firms, financial institutions, multi-national companies, insolvency practitioners and high-net-worth individuals. With offices in the BVI, the Cayman Islands and Hong Kong, we are strategically placed to meet the demands of our clients wherever they are located in the world.

LS: Can you share more about your background?

EF: I was born and raised in the UK. My parents are from Hong Kong. I trained and qualified as a solicitor in England and Wales in 2016 and practiced in London until 2022. I then qualified as a solicitor in the BVI and relocated there in 2022 with another offshore law firm. I then moved to Hong Kong in 2024 with Loeb Smith.

LS: You have lived and practiced in the BVI as a litigator for a number of years before relocating to Hong Kong with Loeb Smith. What is it like practicing litigation in the BVI? What is the civil court system like?

EF: The litigation process in the BVI is efficient and modern. The BVI is a British Overseas Territory which has a legal system based on the English common law and it therefore offers certainty to litigating parties. The BVI is a member state of the Eastern Caribbean Supreme Court (“ECSC”). Civil procedure is governed by the ECSC Civil Procedure Rules 2023 together with practice directions issued from time to time. The amendments to the Civil Procedure Rules last year modernised and streamlined the litigation process in the BVI. The ECSC E-Litigation Portal also provides a user friendly and efficient system for active management of case files throughout the litigation process.

In terms of court system, there is a dedicated Commercial Division of the High Court (commonly known as the Commercial Court) in the BVI which manages high-value and complex commercial disputes in an expeditious and proportional manner. The Civil Division of the High Court deals with civil litigation that is outside the remit of the Commercial Court. The ECSC Court of Appeal hears appeals from the High Court and Commercial Court. The Judicial Committee of the Privy Council in the UK hears appeals from the ECSC Court of Appeal and acts as the final court of appeal for the BVI.

LS: What do you like about working at Loeb Smith?

Loeb Smith’s culture makes it a wonderful place to work. The work environment is collaborative, entrepreneurial and friendly. I joined the Hong Kong office earlier this year and everyone has been very welcoming, and I have settled into my role very quickly. We are a close-knit firm with three offices around the world. Even though I am now based in Hong Kong practising BVI law, my colleagues in our other offices are only ever one phone call away and we have already worked successfully together on some matters.

LS: Now you are based in our Hong Kong office, what are your impressions of living in Hong Kong so far?

EF: Hong Kong is a great city. It was very easy finding my feet in Hong Kong – it is well connected, convenient and efficient. These attributes make it easy to see why Hong Kong is one of the world’s premier financial centres and attracts individuals and businesses from all over the world. Whilst Hong Kong is often associated with urbanisation and skyscrapers, the countryside and hiking trails are never too far away or too inconvenient to get to – Hong Kong does have the best of both worlds.

LS: From those which you can disclose, what do you think are the most challenging client matters that you have worked on?

EF: The most challenging client matters are those which are time sensitive, involve multiple jurisdictions and/or languages and where the client is located in a time zone that is 12 hours ahead of yours. The matters I have dealt with often contain some, if not all, of these elements. The key to overcoming these challenges is responsiveness and communication with the client and colleagues, as well as having a clear strategy in terms of what needs to be achieved.

LS: You have been successful to date in your ability to earn the confidence of high-profile clients. What do you attribute that to?

EF: Aside from technical ability, it is understanding at the outset what the client’s objectives are and having a clear strategy to achieve the objectives. Regular communication with the client and being responsive to questions as and when they arise throughout the matter will manage the client’s expectations and will provide them with the client care they would expect from the legal team.

LS: What types of BVI related commercial disputes and insolvency matters have you recently been asked to advise on?

EF: I have recently been asked to advise on a fairly broad range of BVI related commercial disputes. These range from seeking injunctive relief to setting aside default judgment as well as reviewing loan agreements on behalf of lender clients in relation to enforcement action against defaulting parties. In terms of insolvency matters, I have recently been asked to advise on applying for recognition of BVI proceedings in a foreign jurisdiction.

What is interesting is that these matters often involve more than one jurisdiction – there is, more often than not, a non-BVI element to the matter and can involve jurisdictions including the Cayman Islands, England and Wales, Hong Kong or mainland China. The work is truly global and it is interesting to work with colleagues and clients in other jurisdictions on these matters.

LS: Lastly, are there any other developments and/or trends in the legal market that you see over the next 6 to 12 months?

EF: The BVI remains one of the world’s leading offshore financial centres and I expect that the amount of commercial litigation in the BVI to remain steady in the next 6 to 12 months. The rising popularity of digital assets has meant that the legal market has seen an increase in digital asset disputes (such as ownership disputes) and it is likely this trend will continue.

The BVI remains a popular jurisdiction for incorporating entities including investment funds and when market conditions tighten there are often disputes between investment funds and some of their investors. These disputes relate to, among other things, illiquidity and suspension of investors’ ability to redeem from the funds. The BVI could see more of these disputes in the near future.

In terms of insolvency, the BVI has in recent years dealt with a number of high-profile liquidations of insolvent companies and this trend may continue in the next 6 to 12 months.

In terms of restructuring, the BVI saw an increase in court-supervised restructurings last year. With the slowdown of the global economy and the financial difficulties facing the global real estate market, the BVI could see a further increase in the number of international restructurings originating from the real estate market.

LS: Thanks for your time, Edmond.

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This publication is not intended to be a substitute for specific legal advice or a legal opinion. For specific advice on BVI related commercial disputes/litigation matters please contact your usual Loeb Smith attorney or:

Edmond Fung
E: edmond.fung@loebsmith.com
T: + 852 3580 8487

About Loeb Smith Attorneys

Loeb Smith is an offshore corporate law firm, with offices in the British Virgin Islands, the  Cayman Islands, and Hong Kong, whose Attorneys have an outstanding record of advising  on the Cayman Islands’ law aspects and BVI law aspects of international corporate,  investment, and finance transactions. Our team delivers high quality Partner-led professional  legal services at competitive rates and has an excellent track record of advising investment  fund managers, in-house counsels, financial institutions, onshore counsels, banks,  companies, and private clients to find successful outcomes and solutions to their day-to-day  issues and complex, strategic matters.

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Loeb Smith Attorneys is pleased to share that our team has been shortlisted in the “Best offshore law firm” and “Best offshore law firm client service” categories for the With Intelligence HFM Asia Services Awards 2024 for the second year in a row.

The shortlisting is a strong industry recognition of our leadership and expertise in the offshore law space and our commitment to delivering outstanding client service and comes less than a month after winning the “Best Law Firm – Fund Domicile” at the Private Equity Wire US Emerging Manager Awards 2024.

With offices in Hong Kong, British Virgin Islands and Cayman Islands, our integrated business model combined with our far-reaching approach to innovation and client service, enables us to meet the ever- evolving needs of clients and grow alongside them through sustainable partnerships.

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About Loeb Smith Attorneys

Loeb Smith Attorneys is one of the leading offshore corporate law firms considered one of the most active and knowledgeable firms for advising on offshore investment funds formation and launch of all asset classes including public securities, private equity, venture capital, real estate, and virtual assets. Other areas of strength and growth are advising on M&A, Finance, Corporate Restructurings, Capital Markets, Regulatory Compliance, Investments, Logistics, Shipping and Aviation.

Considered a leading law firm in the Fintech and Blockchain Technology space, Loeb Smith also advises on token issuances, application for VASP licences for Web 3.0 businesses, Metaverse infrastructure and other virtual asset service providers, and utilising Cayman and BVI structures to develop virtual asset platforms for DAOs. Loeb Smith’s clients are investment managers, financial institutions, onshore counsels, and HNWIs who the firm advises on day-to-day legal issues and complex, strategic matters.

Some of our firm’s recent accolades are: winning Leading Firm in Client Satisfaction 2024 award by Legal 500; ranked in Investment Funds category and listed as one of the Firms To Watch for Corporate & Commercial by Legal 500 in 2024; named as Recommended Firm by IFLR 1000 from 2021 to 2024; named in Offshore Client Choice List by Asian Legal Business from 2021 to 2023; ranked amongst Top 30 Asia’s Fastest Growing Law Firms by Asian Legal Business in 2023 and 2024; ranked in The A-List: Top Offshore Lawyers by Asia Business Law Journal in 2022 and 2024; named as one of the ALB Hong Kong Firms to Watch 2024; winning Best Law Firm – Fund Domicile at Hedgeweek US Emerging Manager Awards 2023 and 2024; winning Best Law Firm – Fund Domicile at Private Equity Wire US Emerging Manager Awards 2023 and 2024; winning Best Law Firm – Fund Domicile at Private Equity Wire US Awards 2023; and winning The Best Offshore Law Firm – Client Service at With Intelligence HFM Asia Services Awards 2024.

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Economic Substance in the British Virgin Islands

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On 5 February 2024, the Securities and Futures Commission in Hong Kong (“SFC”) published a Statement of Disciplinary Action, which found that PICC Asset Management (Hong Kong) Company Limited (“PICC”), a corporation licensed to carry on Type 4 (advising on securities) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (“SFO”), was guilty of misconduct for failure to discharge its duties as the manager of a Cayman Islands incorporated fund (“Fund”) under the Fund Manager Code of Conduct and the Code of Conduct for Persons Licensed by or Registered with the SFC. PICC was publicly reprimanded and fined HK$2.8 million by the SFC. In particular, the SFC found that PICC had failed to:

(a) properly manage the Fund to ensure that the Fund’s investments were in line with its stated investment objective and investment restrictions;
(b) implement adequate and effective internal controls to properly manage the risks of the Fund; and
(c) adequately supervise the investment manager who managed the Fund on behalf of PICC.

The said Statement of Disciplinary Action can be accessed here.

The above decision by the SFC is an important reminder that Hong Kong domiciled managers licensed to carry on regulated activities (including Type 9 (asset management) regulated activity) under the SFO must ensure that their actual operations when managing Cayman Islands incorporated funds must comply with the Fund Manager Code of Conduct and the Code of Conduct for Persons Licensed by or Registered with the SFC, failing which the SFC may take various disciplinary actions.

Cayman Islands law relating to Overseas Managers
There is no requirement for the investment manager of a Cayman Islands investment fund to be resident or domiciled in the Cayman Islands and there are no specific statutes that seek to regulate overseas managers of Cayman investment funds. However, depending on the nature and extent of the responsibilities stated in the investment management agreement between a Cayman Islands fund and its overseas manager, the latter could fall foul of certain Cayman Islands laws governing the management of the fund.

Our legal briefing on Fund Management can be found here: Cayman Fund Management

Further Assistance
This publication is not intended to be a substitute for specific legal advice or a legal opinion. If you require further advice relating to the matters discussed in this Briefing, please contact us. We would be delighted to assist.

E: gary.smith@loebsmith.com
E: robert.farrell@loebsmith.com
E: elizabeth.kenny@loebsmith.com

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