Economic Substance
Economic Substance
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Cayman Islands investment management companies are subject to the Economic Substance Law (ES Law). The ES Law requires that a “relevant entity” conducting a “relevant activity” is to have adequate economic substance in the Cayman Islands as it relates to its Core Income Generating Activities (“CIGA”).
CIGA is defined as follows:
- taking decisions on the holding and selling of investments
- calculating risk and reserves
- taking decisions on currency or interest fluctuations
- preparing reports or returns, or both, to investors or the Cayman Islands Monetary Authority
These four criteria are not prescriptive, but rather it will be the responsibility of each entity to determine its own CIGA and to ensure that these activities are performed in the Cayman Islands.
Azimuth has experienced professionals that can perform CIGA activities from the Cayman Islands.
