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.

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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The EU’s General Data Protection Regulation (“GDPR”) applies to offshore investment funds with European investors. The Cayman Islands Data Protection Act, 2021 (“DPA”), regulates the processing of all personal data. Inspired by the UK’s Data Protection Act, the DPA includes provisions very similar to GDPR (together “Data Protection Laws”), with certain notable differences.

Even though the DPA applies generally to the processing of personal data and not just to investment funds, within this context and as part of the subscription process, investors are required to provide a government-issued photo ID, source of funds and wealth, contact details, payment details, and tax residence information, or even additional information about employment, dependents, income and investment objectives (the “Investor Personal Data”), which are processed and stored by or on behalf of the investment fund (the “Fund”) and/or by one or more of the service providers to the Fund. Some of the processing may be done by different parties in various jurisdictions.

Within the context of investment funds, the Administrator, Transfer Agent, Distributor, and the Investment Manager of a Fund may fall within the definition of a Data Controller or Data Processor. To ensure compliance with GDPR and/or DPA, the Fund’s Board of Directors should review the contractual arrangements with these parties and may need to appoint a Data Protection Officer. As a reminder, the Board of Directors of the Fund is required to supervise third party service providers and ensure that there are sufficient measures in place to protect Investor Personal Data. Privacy Notices in the Fund’s offering documents would need to be updated to ensure that investors are fully aware of where their Personal Data is being processed, by whom and for what purpose.

For ease of reference, a brief comparison between GDPR and the DPA is included below.

The Cayman Islands Monetary Authority (“CIMA”) has recently published its annual AML/CFT Activity Report for 2022 which can be viewed at the following link:  AML CFT Activity Report 2022 V1 (cima.ky) and there are a few points worth noting. In particular:

1. CIMA carried out 88 Inspections in 2022 compared to 161 in 2021; only 3 of those inspections resulted in letters of no findings, which means that 85 resulted in findings (i.e. clarifications and/or remediations were required);
2. CIMA issued 2 administrative fine penalties totaling CI$378,670.72 (approx. US$461,793. 56) relating to breaches of the Anti-Money Laundering Regulations (2023 Revision);
   Securities Investment Businesses remains a key priority for CIMA and appropriate resources should be allocated to cover AML/CFT compliance;
3. VASPs are also identified as having medium to high overall inherent risk and are likely to be closely scrutinized by CIMA as they become more widespread – particular attention should be placed on compliance with the ‘Travel Rule’;
   risk assessments (risk-based approach) remain important to demonstrate compliance (or lack thereof);
4. Client Due Diligence/Know Your Client documents ought to be checked and updated to ensure they are consistent with policies and procedures; and
   documented corporate governance and leaving a paper trail behind any AML/CFT-related decisions being taken by the board is very important.

We have advised and guided clients in both 2022 and 2023 through a number of CIMA inspections resulting in either no findings or in findings but with no administrative fine penalties from CIMA. Should your Cayman Islands company become the subject of an upcoming inspection from CIMA, please do not hesitate to get in touch with us.

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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
E: vivian.huang@loebsmith.com
E: faye.huang@loebsmith.com

Loeb Smith is pleased to welcome Ivy Wong to the firm as Senior Legal Director for its Corporate practice in the Hong Kong office, where her practice focuses on advising multi-national corporations and conglomerates, shareholders, investment funds, financial institutions, banks, public and private companies, as well as high net worth individuals. Ivy will become a Partner of the firm pending upon registration as a foreign lawyer in Hong Kong.

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Ivy is a seasoned corporate transactional lawyer who is qualified in multiple jurisdictions and has led many unprecedented and high-profile cross-border transactions that won industry awards and recognitions. She was previously a Partner and had served as a regional steering committee chair and a global steering committee member for her practice at one of the largest international law firms. Her practice is primarily focused on cross-border corporate work, capital markets, corporate finance, merger and acquisition, investments and restructuring, compliance and general commercial work.

Ivy is highly experienced in communicating with regulators, providing solutions that meet both regulatory and commercial needs, and advising board members and senior management in their corporate planning and transactions. With a track record serving a wide range of industry sectors, multiple of Ivy’s recent transactions are in healthcare, biotech and life sciences sectors.

Ivy has been shortlisted for Euromoney Asia Women in Business Law Award for consecutive years and is named one of the leading practitioners in Hong Kong. She is a Vice Chair of the Social Sustainability Committee of The British Chamber of Commerce in Hong Kong and sits on the judging panel for the Hong Kong Corporate Governance and ESG Excellence Awards co-conferred by the Chamber of Hong Kong Listed Companies. She has been quoted and interviewed by international media and journals including Bloomberg, CNBC, The Wall Street Journal, The Economist and Reuters.

“Ivy’s addition adds greater depth and expertise to the firm’s corporate, capital markets and M&A practice in Hong Kong for its international clients and enables the firm to better serve its clients and their business needs in Asia, practice areas that continue to be a strategic priority for our firm.” said Gary Smith, Partner. “Ivy is an experienced corporate transactional lawyer with a strong market profile, and a wonderful addition to our growing team in Hong Kong focused on offshore legal expertise and outstanding client service.”

“I am pleased to have the opportunity to join the team, which is young and energetic, with a clear vision for growth and commitment to the region. What sets it apart is also its expertise in the virtual assets space that is both cutting edge and fast-growing, and also its responsiveness to the regulatory changes and delivery of timely and quality advice to its clients.” said Ivy Wong.

By way of an update on our recent publication (which can be found here) that the Financial Action Task Force (FATF) had determined that the Cayman Islands has substantively fulfilled its action plan, and following completion of a recent on-site visit by the FATF, the Cayman Islands has now been de-listed from the FATF so-called “Grey list”.

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The FATF plenary congratulated the Cayman Islands for its significant progress in addressing the strategic AML/CFT deficiencies previously identified during its mutual evaluations. The Cayman Islands will no longer be subject to the FATF’s increased monitoring process.

With its removal from the FATF’s Grey list there is an expectation that the Cayman Islands will be de-listed from the EU’s AML / CFT List shortly.

The Cayman Islands has continued to be the premier offshore jurisdiction for, among other things, structuring investment funds and special purpose vehicles notwithstanding its inclusion on each of the FATF Grey list and the EU’s AML/CFT List. One of the key reasons for this is that the jurisdiction operates a business friendly and well-regulated financial system underpinned not only by a belief in proportionate, risk-based regulation and a conviction to integrity and transparency, but also by the belief that appropriate regulation and international cooperation drive commercial success.

The removal of the Cayman Islands from the Grey list will hopefully serve to underscore the jurisdiction’s drive to adopt the highest international standards and industry best practices.

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.

On 31 August 2022, the Cayman Islands introduced the restructuring officer regime by making certain amendments to the Cayman Islands Companies Act. Please see link below to an article first published in IFC Review where Gary Smith and Robert Farrell consider the benefits of the Regime now that it has been in place for nearly twelve months, and how it is operating in practice. Cayman Islands:

The New Regime For Restructuring Officers.

We are pleased to share that Loeb Smith Attorneys has won Best Law Firm – Fund Domicile at the Private Equity Wire US Awards!

It feels great to see that our team’s relentless determination for successful closures has been recognized multiple times this year, including for the second time at Private Equity Wire Awards 2023. For the service provider categories, the nominated firms were based on a widespread survey of more than 500 GPs and other key industry participants. Congratulations to our Investment Funds team for their top notch legal advice and for working seamlessly between our offices in the BVI, the Cayman Islands and Hong Kong!

We thank Private Equity Wire and the clients for their vote!

Find out more here: https://awards.privateequitywire.co.uk/us-awards

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