News | Loeb Smith

Hong Kong (12 February 2026) Off the back of winning the Best Structured Finance Deal of the Year (Hong Kong) at the FinanceAsia Achievement Awards 2025, Loeb Smith is proud to announce that Hong Kong Capital Finance Corporation Limited (HKCFC)’s residential mortgage-backed securitisation (RMBS) transaction, as arranged by United Overseas Bank with HKCFC MBS 5 Limited as the issuer (Issuer), has been named the Significant Deals 2026 – Best Securitization (North Asia- Hong Kong) at The Asset Triple A Awards.

This accolade recognises the complexity and innovation of the HK$1,503 million rated, privately placed fixed-rate RMBS issued by HKCFC MBS 5 Limited, rated Aa2(sf) and A3(sf) by Moody’s. Notably, this transaction marked Hong Kong’s first rated RMBS in more than two decades, marking a milestone for Hong Kong’s capital markets and promoting greater funding diversification among newer originators despite a challenging residential property market.

Loeb Smith acted as BVI counsel to HKCFC MBS 5 Limited, led by Vanisha Harjani, Partner in the Loeb Smith Hong Kong office.

Commenting in Hong Kong, Partner Vanisha Harjani said: “It is encouraging to see the British Virgin Islands remain a popular and important jurisdiction for issuers in onshore structured finance deals. We are optimistic about the market outlook and remain committed to serving our clients in Asia and those seeking to establish a presence there. This award reflects the strength of Loeb Smith’s corporate and finance capabilities and our commitment to delivering innovative solutions in complex markets. We are honoured to have advised HKCFC MBS 5 Limited on Hong Kong’s Best Structured Finance Deal of the Year.”

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Our firm has been ranked as Lexology Legal Influencer for Dispute Resolution – Central and South America for Q4 2025. We are proud that Loeb Smith’s articles were ranked as Legal Influencer in all quarters of 2025! Many thanks to our readers and to our contributing author colleagues for making it possible. Find out more about our Litigation and Disputes service.

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Hong Kong (20 January 2026) Loeb Smith is proud to announce that Hong Kong Capital Finance Corporation Limited (HKCFC)’s residential mortgage-backed securitisation (RMBS) transaction, as arranged by United Overseas Bank with HKCFC MBS 5 Limited as the issuer (Issuer), has been named Best Structured Finance Deal of the Year (Hong Kong) at the FinanceAsia Achievement Awards 2025.

This accolade recognises the complexity and innovation of the HK$1,503 million rated, privately placed fixed-rate RMBS issued by HKCFC MBS 5 Limited, rated Aa2(sf) and A3(sf) by Moody’s. Notably, this transaction marked Hong Kong’s first rated RMBS in more than two decades, marking a milestone for Hong Kong’s capital markets and promoting greater funding diversification among newer originators despite a challenging residential property market.

Loeb Smith acted as BVI counsel to HKCFC MBS 5 Limited, led by Vanisha Harjani, Partner in the Loeb Smith Hong Kong office.

Commenting in Hong Kong, Partner Vanisha Harjani said: “It is encouraging to see the British Virgin Islands remain a popular and important jurisdiction for issuers in onshore structured finance deals. We are optimistic about the market outlook and remain committed to serving our clients in Asia and those seeking to establish a presence there. This award reflects the strength of Loeb Smith’s corporate and finance capabilities and our commitment to delivering innovative solutions in complex markets. We are honoured to have advised HKCFC MBS 5 Limited on Hong Kong’s Best Structured Finance Deal of the Year.”

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Introduction

On 27 November 2025, the Tax Information Authority (International Tax Compliance) (Common Reporting Standard) (Amendment) Regulations, 2025, (the “Amendment Regulations”) were published in the Cayman Islands Gazette which, upon coming into force on 1 January 2026 (other than the new regulations for CRS returns and compliance forms which come into force on 1 January 2027), will introduce a number of important amendments to the Tax Information Authority (International Tax Compliance) (Common Reporting Standard) Regulations (2021 Revision).

The amendments introduce practical changes to registration, reporting deadlines, penalty mechanics and information-gathering requirements, and also update the CRS framework to address electronic money and virtual assets.

Registration and Changes in Details

From 1 January 2026:

- A Cayman Financial Institution that becomes a Financial Institution in a given calendar year must register with the Tax Information Authority of the Cayman Islands (TIA) by 31 January of the following year via the TIA’s AEOI portal.
- There are transitional provisions for those entities that became a Cayman Financial Institution during 2025 whereby the deadline for their registration with the TIA is 30 April 2026.

In addition, if any information in a Financial Institution’s registration changes (for example, CRS classification, name, or contact details), a change form must be submitted within 30 days of the change taking effect.

PPOC must be within the Cayman Islands

The Amendment Regulations require the principal point of contact for each Cayman Financial Institution (“PPOC”) to be located within the Cayman Islands. Previously, the PPOC could be based anywhere. For those entities that are currently registered and whose PPOC is not based within the Cayman Islands, they must appoint a Cayman-based PPOC and notify the TIA by 31 January 2027.

Returns, Compliance Forms and Deadlines

The dates by which CRS Returns and CRS Compliance Forms must be filed are changing and will now fall on the same date. From 1 January 2027 (i.e. for the reporting for 2026):

- CRS returns (including nil returns) must be filed by 30 June of the year following the relevant calendar year (moved forward from 31 July which is the current deadline); and
- The CRS Compliance Form filing deadline will also be 30 June (brought forward from the current deadline of 15 September).

For both CRS returns and Compliance Forms, they must be filed through the TIA’s electronic portal in the required form and must be accompanied by a declaration that the information is “adequate, accurate and current”. These terms are defined in the Amendment Regulations as follows:

- “adequate” means that information provided contains all details required by the relevant regulation;

- “accurate” means the information provided is correct and reliable; and
- “current” means the relevant information is as up to date as is reasonably practicable and reflects any change of circumstances that occurred within the period to which the information relates.

Due Diligence

The Amendment Regulations will also require Cayman Financial Institutions to collect and report additional information, particularly in relation to “Controlling Persons” (who are, effectively, the ultimate beneficial owners of a relevant entity) and also additional information in respect of the reported accounts (e.g. whether the account is held in a single name or in joint names).

This information will be collected via a self-certification form, which must be completed by the relevant reportable person. Financial Institutions must now also report whether valid self-certifications have been obtained for all account holders required to provide them.

For accounts maintained as at 31 December 2025, and for reporting periods ending by the second calendar year after that date, the additional information on roles is required only where that information already exists in electronically searchable form.

Penalties for non-compliance

The Amendment Regulations also make changes to the approach that the TIA will take in relation to issuing penalties for non-compliance. In particular, where a Cayman Financial Institution fails to submit the required CRS return and Compliance Form by their due date, the TIA may now issue a penalty notice immediately without first issuing a notice of breach, which previously allowed representations to be made to the TIA in mitigation. Otherwise, the TIA’s procedures for the issuance of penalties remain unchanged.

The previous provisions under which interest accrued on unpaid penalties have been repealed. In the case of an appeal against a penalty, enforcement of the penalty will continue to be stayed pending the outcome of that appeal.

Digital assets

The Amendment Regulations introduce a comprehensive update to align the regime with the growing use of electronic money and crypto-assets. The scope of a “Depository Institution” is widened so that entities holding “Specified Electronic Money Products” or “Central Bank Digital Currencies” (“CBDCs”) for customers are treated in the same way as traditional deposit-takers, and the definition of a “Depository Account” is expanded accordingly.

The concept of a “Financial Asset” is also broadened to include Relevant Crypto-Assets (i.e. crypto-assets capable of being used for payment or investment), so that dealing, managing or trading in such assets may now cause an entity to be classified as an “Investment Entity” for CRS purposes. As a result, businesses involved in e-money issuance, digital wallets, exchange activities or custody of digital assets may fall within CRS reporting or due diligence obligations where they previously sat outside the framework.

The amendments also coordinate CRS reporting with the forthcoming “Crypto-Asset Reporting Framework” (“CARF”) by relieving Financial Institutions from having to report gross proceeds on Financial Assets where those proceeds will already be reported under CARF.

Altogether, the new provisions ensure that e-money, CBDCs and certain crypto-assets are treated in a consistent way under CRS, closing previous gaps and bringing digital-asset service providers more firmly within the global transparency and reporting framework.

Next steps

In light of the Amendment Regulations, Cayman Financial Institutions (e.g. investment funds, investment managers, and discretionary investment advisers) should:

- consider their CRS registration status and ensure processes are in place to meet the new registration deadlines. In particular, those who became Financial Institutions in 2025 will need to ensure they are registered with the TIA by 30 April 2026;
- identify whether the business has a Cayman-based PPOC and if not, plan for an appointment of a Cayman-based and TIA notification by 31 January 2027;
- update account opening and onboarding procedures so that valid self-certifications (with all required data fields) are obtained before account opening;
- review whether systems can capture the new reportable data elements (joint account status, account type, Controlling Person roles, self-certification status) and whether such data is stored in electronically searchable form;
- for e-money, CBDC or crypto-asset businesses, assess whether the updated definitions bring additional entities, products or accounts within CRS scope and take action accordingly;
- adjust internal reporting calendars and compliance workflows to align with the new 30 June deadline for both CRS returns and compliance forms; and
- ensure that internal sign-off is consistent with the requirement to declare that filings are adequate, accurate and current.

We provide the services for PPOC and advise a broad range of clients on CRS classification, registration, due diligence frameworks and reporting under the Cayman Islands’ international tax compliance regime, including the impact of the Amendment Regulations.

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If you would like to appoint a Cayman-based PPOC and/or discuss how these changes may affect your business, your CRS classification or your onboarding and reporting processes, please contact any member of our team.

E: gary.smith@loebsmith.com
E: robert.farrell@loebsmith.com
E: elizabeth.kenny@loebsmith.com
E: vanisha.harjani@loebsmith.com
E: vivian.huang@loebsmith.com
E: yun.sheng@loebsmith.com

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Wonderful news: Loeb Smith Attorneys’ Cayman Islands team has once again been recognised in the rankings of Legal500, one of the top international publications that evaluates law firms and legal professionals worldwide.

In the 2026 edition, Loeb Smith Attorneys reaffirms its strong Cayman Islands positioning standing out in the Investment Funds practice top tier firms and receiving an accolade for Client Satisfaction.

This recognition highlights the trust our clients place in us, the depth of our expertise and the strength of our multidisciplinary teams focused on delivering outstanding client service.

We are very proud of our team and thankful to our clients for taking their time to talk to Legal500. Here is what our clients shared to Legal 500 about us:

‘Their deep knowledge of the nature of digital assets, wallet structures, and Web3 business
models is reflected directly in their drafting. Instead of relying on generic fund templates, they
proactively incorporate crypto-specific wordings and clauses into fund documents, making them
clear, accurate, and practical for all stakeholders, from fund managers to service providers and
even auditors.’

***

‘I’ve worked with Loeb Smith on a number of crypto fund matters, including fund formation,
regulatory compliance, and handling in-kind subscriptions using digital assets.’

***

‘Gary Smith is particularly impressive. He is not only highly knowledgeable on the legal side but
also well-versed in how crypto businesses operate in practice. Their ability to explain complex
regulatory matters in plain language makes decision-making much easier on our end and the
crypto client side.’

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Our firm has been ranked as Lexology Legal Influencer for Private client – Central and South America for Q3 2025. This is the third ranking from Lexology this year.

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Loeb Smith was honoured to be awarded Law Firm of the Year: Client Service at the Hedgeweek® US Awards 2025 held last week in New York.

Partner, Robert Farrell, and Senior Associate, Juliette Schembri, attended the award gala to accept the accolade and celebrate this achievement. This recognition underscores the firm’s consistent commitment to providing exceptional legal services to clients worldwide. This honour inspires us to continually push forward, grow stronger, and deliver effective legal advice and solutions to our clients.

Event photos: US Awards 2025 – Hedgeweek – Law Firm of the Year – Client Services | Loeb Smith

Global Vision. Client Focus.

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The Cayman Islands Monetary Authority (the “Authority”) has announced the launch of its One-time Non-Compliant Directors’ Amnesty Scheme (“Scheme”) – a limited opportunity for eligible registered directors to voluntarily settle outstanding annual fees and accrued penalties at a discounted rate.

According to the Authority’s announcement, “this initiative reflects the Authority’s commitment to supporting good governance and regulatory compliance, while also recognising the practical challenges that may have contributed to past non-compliance. By offering this limited-time opportunity, the Authority seeks to help directors return to good standing and ensure the continued integrity of the jurisdiction’s regulatory framework.”

The Scheme will run from 16 September to 15 October 2025 and is open to registered directors within the 1–19 covered entities category, who as of 31 August 2025, have more than two years of unpaid annual fees. It provides these directors with the opportunity to regularise their status under the Directors Registration & Licensing Act, 2014 (“DRLA”). The announcement clarifies that directors currently under investigation or subject to enforcement action by the Authority or another regulatory body are not eligible.

Apparently, the Authority has contacted Directors who meet the criteria directly via email with the relevant participation instructions. If you believe you may be eligible but did not receive a notification, please contact the Authority at amnesty@cima.ky.

Applications under this scheme will only be accepted through the Directors’ Gateway Portal at https://gateway.cimaconnect.com. Eligible directors should log in to the portal to review and confirm their status in preparation for the launch of the Scheme. Further details are available on the portal effective 16 September 2025.

The Authority is encouraging Directors wishing to return to good regulatory standing to take advantage of this 30-day window. Once the Scheme closes, the full fees and penalties will apply without exception.

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We’re proud to be shortlisted at this year’s Private Equity Wire® US Awards 2025 in the following categories:

Law Firm of the Year: Client Services Award
Law Firm of the Year: Transactions Award
Law Firm of the Year: Fund Structuring Award
Law Firm of the Year: Overall Award

Please support the fantastic work of our Cayman Corporate/Funds Group by voting @LoebSmithAttorneys by Friday 5 September on this link: https://pew-awards.evalato.com/public-evaluation/19227/login

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We are so excited to share that @LoebSmith has been shortlisted in three categories at the ALB Hong Kong Law Awards 2025, namely:

Fintech Law Firm of the Year
Investment Funds Law Firm of the Year
Offshore Law Firm of the Year

The winners will be announced at the ceremony on 12 September 2025 in #HongKong.

Thank you all who contributed to this achievement!