The Cayman Islands is a popular jurisdiction for investment managers due to its robust infrastructure and tax benefits. Investment managers can apply for exempted status under Schedule 4 of the Securities Investment Business Law if they conduct business exclusively for sophisticated persons, high net worth individuals, or entities composed solely of those groups. Cayman Islands exempt companies are commonly used as vehicles for exempted status. Bell Rock Group, a Cayman Islands financial services firm, can assist investment managers with establishing exempted status and related services like company incorporation and compliance.

1. The Cayman Islands “Excluded Person”
Investment Manager
The Cayman Islands is a popular jurisdiction for setting up global investment funds and
financial firms. Investment managers all over the world taking advantage of the
jurisdiction’s robust financial infrastructure, reputation, legal regime and tax neutral
status.
The Securities Investment Business Law (“SIBL”) provides certain exemptions from the
need for a full licence. These exclusions are set out under Schedule 4 of the SIBL, and
some qualifying entities must register with the Cayman Islands Monetary Authority as
“excluded persons”. The SIB Law prohibits any company incorporated in the Cayman
Islands from carrying on securities investment business unless it holds a licence
granted under that Law or is exempt from holding such a licence. Application for such
a licence is made to the Cayman Islands Monetary Authority (CIMA) which is the
regulatory body that oversees the regulation of securities investment business in the
Cayman Islands.
Exemption
The most commonly applicable exemption available to the proprietor of a securities
investment business, such as an investment manager or an investment adviser, is for

2. such a business to be carried on exclusively for one or more of the following classes of
persons:
• sophisticated persons (broadly, a sophisticated person is a listed or regulated
entity, or an experienced investor that invests more than US$100,000 per
transaction);
• high net worth persons (broadly, a high net worth person is an individual with a
net worth of at least US$1,000,000 or an individual with total assets of at least
US$5,000,000); or
• an entity all of whose investors are either sophisticated persons or high net
worth persons.
Applying for excluded person status
Cayman Islands exempt companies are often used as vehicles for excluded person
status under Schedule 4. Partnerships, ordinary non-resident companies and local
companies are also eligible for the status.
Getting advice and getting started
Bell Rock Group has extensive experience with establishing companies as excluded
person investment managers in the Cayman Islands, and can assist your firm with
registration and compliance. Our firm can assist with incorporating your Cayman
Islands company, drafting documentation for excluded person registration, the
appointment of CIMA registered directors’ resident in Cayman, registered office and
corporate services, providing AML Compliance Services, economic substance and
physical presence. We can also assist clients with setting up Cayman investment funds
and other investment entities. Bell Rock Group is regulated by the Cayman Islands
Monetary Authority, a member of the Alternative Investment Management
Association (AIMA), a member of the Hedge Fund Association, member of Cayman
Finance and a member of the Cayman Islands Chamber of Commerce.
For further information please feel free to contact Bell Rock Group:
info@bellrockgroup.com