Article: Cayman Islands' hedge fund haven faces challenges; SEC registration creates competition from onshore centers.(News)

Byline: David Clarke

OTTAWA - Late last year, the Cayman Islands' hedge fund industry celebrated a milestone: the registration of the 10,000th fund to be authorized by the Cayman Islands Monetary Authority.

But the celebration may have been premature, since as of Feb. 1, hedge funds physically located in the United States have had to be registered with the Securities and Exchange Commission, regardless of where the actual fund is domiciled.

"We think the SEC regulations will have a neutral or positive impact on the industry here,'' said Jonathan Tonge, a partner and joint head of the investment fund practice at Walkers, a law firm in George ...

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