Corporate Governance Guidance for Regulated Funds

This document is a Statement of Guidance on Corporate Governance for Regulated Funds issued by the Cayman Islands Monetary Authority (CIMA). It outlines new regulatory measures introduced in April 2023, which include a Corporate Governance Rule and guidance aimed at enhancing corporate governance requirements for regulated entities, specifically targeting private and mutual funds. The guidance emphasizes the importance of operators reviewing their corporate governance frameworks to ensure compliance with the new standards. It details the core elements of corporate governance, including oversight functions, conflicts of interest, operator meetings, documentation, relations with CIMA, and risk management. The document specifies that operators must maintain adequate governance structures proportional to the size and complexity of their funds. It also highlights the necessity for operators to meet regularly to discuss governance matters and ensure that they are acting in the best interests of the funds they manage. The guidance aims to assist regulated funds in meeting their obligations under the new Corporate Governance Rule.