Insights

This update is for listed groups and their advisors considering the British Virgin Islands’ and Cayman Islands’ economic substance (ES) regimes. It is aimed primarily at issuers listed in Hong Kong but many of the points raised are of more general application.

Lawyers must learn to code' and 'blockchain and smart contracts will be the end of lawyers' are pronouncements often heard in discussions around blockchain, virtual assets and smart contracts. Neither should be taken literally. We co-authored the TLA Blockchain Legal and Regulatory Report, published in conjunction with the Law Society. The report provides general legal and regulatory analysis and guidance for lawyers advising clients in connection with the technology.

In a rare example of judicial comity being sidelined in a cross-border insolvency, the Cayman Islands Grand Court has declined to follow an earlier ruling of the High Court of Hong Kong. Partner Jessica Williams and Associate Mark Burrows examine the case of Altair Asia.

Here is a way to start an article like no other; what a fantastic year 2020 has been. The obituary of the hedge fund industry has been written many times, but for some, it was written in indelible ink in 2008 following the financial crisis. Commentators blamed the industry for its part in the global collapse, notwithstanding the fact that a huge majority of fund vehicles during that time were actually victims themselves. Ignoring the huge layer of red tape that subsequently encased the industry, this wasn’t actually the largest cause for concern.

All BVI companies and limited partnerships with legal personality must now report on their ES position annually (this includes foreign companies and limited partnerships with legal personality registered in the BVI).

The vast majority of BVI companies will need to ensure their registered agent is able to upload their economic substance report into the Beneficial Ownership Secure Search system (BOSS) before 30 December 2020.