The Cayman Islands government announced this week that they are in continuing communication with the EU and are taking actions which they believe will merit the removal of the Cayman Islands from the list of non-cooperative jurisdictions for tax purposes.

In particular, the government announced that the private fund rules and policies are currently undergoing final review and will be presented to CIMA's Board of Directors for approval at the next available opportunity.

The government also notified industry that the Private Funds Law will be amended to add the requirement that any conflicts of interest in relation to performance of the core requirements must also be properly managed and monitored, in addition to just being identified. This means that valuations, safekeeping of fund assets or cash monitoring may be performed by the manager or operator of the private fund (or a person who has a control relationship with the manager of the private fund) provided that, in addition to being properly identified and disclosed to investors of the private fund, potential conflicts of interest must also be properly managed and monitored.