Many of the world's top fund administrators have set up in the Cayman Islands and the jurisdiction is second only to Luxembourg in the number of licensed fund administrators.
Fund administrators in the Cayman Islands have the benefit of a well established professional infrastructure including major international banks, lawyers, all of the international accountancy firms and a number of corporate services providers.With the rapid development of the Cayman Islands mutual funds industry since 1993, administrators in the Cayman Islands have developed a high level of expertise in alternative investments which meets or surpasses many of their onshore counterparts. Despite the repeal of the Ten Commandments in the US in the mid 1990's, US funds continue to be largest group of administered funds in Cayman which is a testament to the high level of expertise in Cayman. Administrators are licensed by the Cayman Islands Monetary Authority and are required to act as the principal office of the funds they administer. Administrators are obligated to report to the regulator if they become aware that a fund is acting in breach of the Mutual Funds Law or any other law, is or likely to become insolvent or is otherwise acting in a manner prejudicial to its creditors or investors.