Unravelling
complexity.

In this special report, co-published by Preqin, Asia Head of Funds and Regulatory Maggie Kwok explores why the future of private capital lies in the East and why navigating regulatory issues will be a key consideration for investors managing the record US$1.6 trillion in private capital assets earmarked for the region.

Under Cayman Islands beneficial ownership legislation, certain Cayman Islands companies are required to maintain details of their beneficial owners and relevant legal entities on a beneficial ownership register. This guide explains which companies are in scope of the Legislation and which are exempt, who is classed as a beneficial owner and a relevant legal entity, and the obligations for in scope companies and those who hold interests in them.

A core requirement of the BVI economic substance regime is that companies and limited partnerships (entities) should, where they conduct “relevant activities”, have necessary economic substance in place according to the requirements of the legislation. Where an entity fails to put the necessary substance in place the BVI International Tax Authority (ITA) may make a determination that an entity is non-compliant with the economic substance requirements during a given financial period. Where a determination is made it is anticipated that the ITA will issue a notice (a Non-Compliance Notice or NCN) served on the entity’s registered agent at its registered office.

In our second episode George Weston, Partner in our Corporate team in the BVI and an expert on ECM and M&A transactions, and Murray Roberts, Director at Harneys Fiduciary based on the US West Coast, discuss de-SPAC transactions and the options available for structuring business combinations where a SPAC is incorporated offshore.

In this article, originally published in LexisPSL, Asia Managing Partner Ian Mann discusses why each of the offshore jurisdictions, the British Virgin Islands, Cayman Islands and Bermuda, should adopt the new English cross-class cram down provisions by way of their own legislative amendment in order to keep up with modern restructuring requirements.

Although cryptocurrencies are not ‘new’, it is only in recent years that ownership of digital assets has become widespread. Given the increased interest and value in the crypto market, it is unsurprising that fraudsters have sought to capitalise on the lack of regulation and investors’ fear of missing out on potentially life-changing returns. This article examines the unique characteristics of cryptocurrencies and their resilience to fraud; the ways in which cryptocurrencies can be misused; and the process for tracing, preserving and recovering cryptocurrencies.

On 6 April 2021, the BVI government passed the Data Protection Act (the DPA). The DPA was published in the gazette on 13 April 2021 but has not yet come into force – it will come into force on a date to be determined by the government and this is expected imminently. The background to this is of course the drive for the BVI to become equivalent with the UK and European Union in this area, in particular under the EU’s General Data Protection Regulation.

It would stretch credibility to suggest that developments in BVI M&A practice were the most noteworthy aspect of the last 12 months, or the one that will most interest future historians. That being said, it was certainly a year in which regulatory developments, combined with global macro events, left M&A lawyers in the BVI adapting rapidly to a new world.

The British Virgin Islands (BVI) comprises of approximately sixty stunning islands, islets and cays located circa sixty miles east of Puerto Rico. This British Overseas Territory, with its outstanding natural beauty, professional service providers and English common law traditions is proving itself to be a highly desirable location for those seeking a safe haven or those wanting to substitute cold winter climates for warmer destinations. The property market in the BVI has been seeing an increase in demand as many investors are more motivated than ever to own alternative homes in jurisdictions with smaller populations and with stricter and proven approaches to dealing with natural disasters and global events like the COVID-19 pandemic.

The Cayman Virtual Asset (Service Providers) Act, 2020 (as amended) (the VASP Act) sets out a full regulatory registration and (from July 2021) licensing regime for virtual asset service providers (VASPs).