Beneficial Ownership
We provide beneficial ownership services in the Cayman Islands to help businesses stay compliant with local regulations. Beneficial ownership refers to the individuals who ultimately own or control a company. Typically, a Beneficial Owner (BO) is someone who holds at least 25% of the company’s shares, rights, or partnership interests, or has the power to control decisions and management. In cases where no BO can be clearly identified, a Senior Managing Official (SMO) will be listed as the BO.
BO Impact on Funds
We assist funds in navigating the complexities of maintaining a Beneficial Ownership (BO) Register, ensuring compliance with updated Cayman Islands beneficial ownership regime regulations. The recent removal of exemptions means that all funds, including those previously exempt, must now maintain an accurate and up-to-date BO Register with their Corporate Services Provider (CSP). Recognising the fluid and transactional nature of funds, the regulations permit Registered Funds to apply an Alternate Route to Compliance and accordingly may opt to disclose a BO Contact Person on the BO register instead.
Available to funds registered under the Private Funds Act (As Revised) and the Mutual Funds Act (As Revised), our compliance services are tailored to fit the unique nature of investment vehicles. With our support, funds can streamline their BO compliance processes, helping them stay aligned with legal obligations while minimising operational disruptions.
Why Appoint a BO Contact Person?
We offer the option to be appointed as Beneficial Ownership Contact Person for funds, simplifying compliance with Cayman Islands BO requirements. By designating a BO Contact Person, funds can avoid the frequent updates required for a BO Register, including the need to submit BO particulars on a monthly basis or issue notifications for ownership changes. This approach is particularly beneficial for funds facing high investor turnover or complex ownership structures.
With our personalised services, available to funds across multiple jurisdictions, appointing a BO Contact Person ensures that compliance is managed efficiently and with minimal impact on day-to-day operations. While there is an annual cost to appointing a BO Contact Person, it often proves more cost-effective than maintaining an active register, offering both convenience and protection for your investors' privacy.
Expertise
Beneficial Ownership Compliance Services
Our team provides full support to help funds comply with beneficial ownership regulations in the Cayman Islands. Following the removal of exemptions, all funds are required to maintain a Beneficial Ownership (BO) Register with their Corporate Services Provider (CSP), containing all “Required Particulars.” We ensure that funds remain compliant by facilitating timely submission and maintenance of these records.
For registered funds, we offer an Alternate Route to Compliance, recognising the fluid nature of investment vehicles. Funds have the option to either file BO details or appoint a BO Contact Person to manage their BO obligations efficiently. This service is tailored to your specific needs, ensuring your fund is always aligned with current legal requirements.
BO Contact Person
Our Beneficial Ownership BO Contact Person service provides funds with an effective solution for managing their BO register. Funds often face challenges with keeping their register current due to investor turnover, particularly when seed or early investors may initially exceed the 25% threshold but later fall below it.
By appointing a BO Contact Person, funds can avoid the burden of monthly updates to their BO register. Our BO Contact Person service handles all communication with the competent authorities, ensuring that BO information is provided upon request and maintained in compliance with the law. Additionally, appointing a BO Contact Person would mean the Contact Person’s details would appear on any possible public BO register in the future.
With our service, you benefit from reduced administrative work and enhanced protections for your investors. While appointing a BO Contact Person comes with an annual fee, it is often more cost-effective than maintaining an active BO register.
Scope of Work for BO Contact Person
Our appointed BO Contact Person acts as a liaison between the fund and the competent authorities, ensuring seamless communication and compliance with legal obligations. The responsibilities of the BO Contact Person include:
- Engaging with authorities as required.
- Ensuring that the legal person’s BO information is properly maintained and accessible.
- Providing information within the stipulated time frame, which can be as little as 24 hours.
- Assessing and testing access and communication capabilities to ensure readiness at all times.
Our BO Contact Person services are available to fund client entities and fund administrators, providing comprehensive support across your client base.
Responsibility of the BO Contact Person
- Liaison facilitating communication between the fund and Competent Authority
- Required to:
- Engage with the Competent Authority
- Ensure communication with the fund is facilitated
- Provide the BO information requested
- Ensure BO information complies with the Act and Regulations
Appointment of the BO Contact Person
- Whilst liability rests with the Fund, the BO Contact Person must ensure it is operationally able to access and provide the required BI information in the timeframe specified
- Processes and procedures must be sufficient for effective execution of the role as a condition of being appointed
- Failure to comply will result in a fine on the fund.
