MFA Submits Comments to Cayman Islands Monetary Authority in Response to Consultation on Corporate Governance

MFA submitted a comment letter to the Cayman Islands Monetary Authority (CIMA) in response to CIMA’s consultation paper on corporate governance.  In the letter, MFA expressed support for CIMA’s proposed principles-based approach to guidance for directors.  MFA encouraged CIMA to modify the proposed cross-sectoral approach, in light of structural differences and different investor expectations for directors of investment funds as compared to directors of other types of companies.  Specifically, MFA noted that investors typically expect the investment adviser to the fund, not the directors, to establish strategic objectives and risk parameters for the fund.  MFA generally supported CIMA’s proposed public database, though we noted the database should not contain any proprietary or sensitive business information.  Finally, MFA encouraged CIMA to adopt a principles-based approach with respect to the number of directorships a person may hold, rather than establishing numerical limits.