Firms subject to the new Cayman economic substance requirements generally must comply with effect from 1 July 2019. However, newly-published amendments to the Cayman Securities Investment Business Law (2019 Revision) (SIBL) confirm that fund managers who are currently registered as "excluded persons" under SIBL, and who undertake discretionary investment management, will have up until 15 January 2020 to comply with these new requirements.

In terms of process, these managers must re-register under SIBL by 15 January 2020, and will then be required to comply with the new substance requirements from the date of re-registration. Managers who do not re-register by 15 January 2020 will be required to cease investment business in or from the Cayman Islands.

These amendments and the introduction of a transitional compliance period are welcome: with a clear timeline to compliance, those operating fund structures with Cayman managers can now plan ahead with certainty and start taking steps to ensure compliance in good time ahead of January 2020. We are hosting a roundtable alongside Walkers Global in July to discuss how the new substance requirements will affect the hedge funds industry.