Cayman Islands Hedge Fund Corporate Governance Survey (Ernst & Young, CIMA)

June 2013

KEYWORDS: Cayman Islands, European, Asia Pacific, Hedge Fund Managers, hedge fund investor, service providers, hedge fund administration, board of directors, Cayman Islands Monetary Authority

Authors:

Ernst & Young

Organizations:
  • Ernst & Young, CIMA

Summary:

This survey captures the views of 179 professionals, encompassing a range of diverse stakeholders including hedge fund managers, investors, directors and service providers, such as administrators, lawyers, accountants and other business support service professionals in North America, the Cayman Islands, Europe and Asia-Pacific.

Key highlights include:

  • Directors’ expertise/knowledge and independence are at the heart of corporate governance and considered to be the most important elements by those polled.
  • Ensuring directors had sufficient time to apply themselves to every board was a concern for a large percentage of stakeholders, even directors.
  • Investors are increasingly demanding more information to assess the robustness of corporate governance standards and frequently do not receive their requested information for due diligence purposes in all circumstances.
  • Stakeholders were divided on whether setting a limit on directorships held would be beneficial to the fund sector.
  • A majority of stakeholders want more transparency on the number of directorships held by directors and prefer that this be divulged by way of a CIMA-managed database.

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