#1Morgan Lewis ADVANCED TOPICS IN HEDGE FUND PRACTICES CONFERENCE Manager and Investor Perspectives NEW YORK Tuesday, June 13, 2023 © 2023 Morgan, Lewis & Bockius LLP#2Cayman Law Issues Speaker Stef Dimitriou Maples Group +1.345.814.5437 stef.dimitriou@ maples.com Morgan Lewis#3MAPLES GROUP Morgan, Lewis & Bockius LLP Maples and Calder - Cayman Law Issues June 2023#4Agenda Hedge Fund Trends CIMA - New and Updated Regulatory Measures Rules and Statements of Guidance: Internal Controls and Corporate Governance Cayman Islands Regulatory Landscape AML, AEOI, Data Protection, and Other Regimes#5Hedge Fund Trends Relevant Trends • CIMA Registered Mutual Funds (as at Q1 2023) - 12,963 • Manager Jurisdictions 58% North America 7% Europe 4% Latin America 14% UK 15% Asia 2% Middle East 1% Austrailia#6Hedge Fund Trends Relevant Trends Investment Strategies by CIMA Category LONG SHORT EQUITY MULTI STRATEGY DIGITAL ASSETS FUND OF PRIVATE FUNDS EQUITY EQUITY LONG ONLY FIXED INCOME GLOBAL MACRO REAL ESTATE ASSET-BACKED MORTGAGE 12% 11% 6% 4% 4% 4% 3% 1.8% 1.8% <1%#7Hedge Fund Trends Relevant Trends • Vehicle Type - Feeder Funds 7% 6% 10% 7% 3% 6% 9% 19% 11% 17% 27% 15% 5% 3% 2% 2% 5% 5% 79% 73% 80% 74% 73% 62% 2017 2018 2019 2020 2021 2022 Corporates (excluding SPCs) Trusts ELPS SPCs#8Hedge Fund Trends Relevant Trends • Vehicle Type - Master Funds 47% 67% 65% 74% 4% 3% 55% 55% 35% 33% 29% 26% 2017 2018 2019 2020 41% 42% 2021 Cayman Islands ELP Cayman Islands Corporate Unit Trust 2022#9• Cayman Islands Monetary Authority – New and Updated Regulatory Measures Internal Controls and Corporate Governance Rule and Statement of Guidance on Internal Controls for Regulated Entities Rule on Corporate Governance for Regulated Entities ⚫ Statement of Guidance on Corporate Governance for Mutual Funds and Private Funds#10Cayman Islands Regulatory Landscape Cayman Islands Mutual Funds - Primary Regulatory Regimes Mutual Funds Act AML/CFT AEOI (US FATCA and CRS) Data Protection#11Cayman Islands Regulatory Landscape Cayman Islands Mutual Funds - Other Regulatory Regimes Administrative Fines • Beneficial Ownership Regime • Economic Substance • Sanctions • FATF "increased monitoring" / EU AML List#12Maples Global Presence ABU DHABI BERMUDA BOSTON BRITISH VIRGIN ISLANDS CAYMAN ISLANDS DELAWARE DUBAI DUBLIN HONG KONG JERSEY LONDON LUXEMBOURG MONTREAL NETHERLANDS NEW YORK SAN FRANCISCO SHANGHAI SINGAPORE#13MAPLES GROUP The Maples Group provides clients with comprehensive legal, fund, fiduciary, regulatory and compliance and entity formation and management services. maples.com