Associate Hugh Anderson discusses the latest M&A
activity involving Cayman Islands entities licensed and regulated
by the Cayman Islands Monetary Authority.
M&A activity in the Cayman Islands is often related to the
acquisition or listing of Cayman companies that are not regulated
in the Cayman Islands. Typically these sorts of transactions
do not require any approval from Cayman regulators.
Recently however there have been a number of well publicised
transactions involving Cayman entities licensed and regulated by
the Cayman Islands Monetary Authority or CIMA. Such
transactions involving the change of control (or any dealing in the
shares) of an entity regulated by CIMA, will require the prior
consent of CIMA.
Some recent and notable examples of these sorts of transactions
are UBS's sale of its alternative fund services business to
MUFG, the sale of a large part of HSBC's Cayman banking book to
Butterfield, as well as numerous sales of mutual fund administrator
/ fiduciary businesses (including those of Appleby and
It is perhaps a consequence of the recent spike in regulated
M&A activity in Cayman that CIMA published late in 2015 a
specific regulatory policy dealing with the criteria for approving
changes in ownership and control. While the policy does not
contain any surprises for those who have had recent engagements
with CIMA on regulated transactions, it does clarify the level of
due diligence required on any incoming shareholders and the factors
that will be taken into consideration by CIMA in assessing a
In all cases the earlier the relevant parties engage with CIMA
the better. CIMA will have a keen interest in learning more
about the purchasers, the ownership structure, any new directors or
officers involved in carrying on the business and their plans for
the business going forward. Walkers teams are regularly
involved in assisting all stakeholders with the CIMA consent
process and would be more than happy to speak with you if you are
interested in a transaction involving a CIMA regulated
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Failure to comply with company law in Hong Kong can be very expensive for businesses. In a highly dynamic business and regulatory environment such as Hong Kong, it is challenging for business owners to remain fully aware of the latest legal requirements.
In our article " Characteristics of the Commercial Agency Law of the United Arab Emirates" published with Mondaq on 27.09.2016, we outlined the general applicability of the UAE Commercial Agency Law (Federal Law No. 18 of 1981 including its amendments).
Confidentiality of corporate documents and information is one of
the key attractions of incorporating a company in the BVI. A
company search of the BVI Registrar of Corporate Affairs will only
disclose certain information and documents.
Luxembourg's Companies Act ‘reform bill' includes new rules for conversions of company types and introduces the S.à r.l.-S.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).