The Cayman Islands government, regulators and industry are ready to lead the wy to a more regulated future.

Overview of Cayman Islands: There is no doubt the global financial crisis and the push for tighter and more onshore regulation of hedge funds will change the industry forever. Cayman’s role in this is unclear but the government, regulator and industry are confident they have the skills and will to keep the jurisdiction as the number one domicile.

Legal services: The unprecedented number of funds in distress has called for innovation and quick thinking from the legal profession as a proliferation of methods to deal with the crisis has developed. Hedge fund first aid and crisis management might be occupying the majority of time now, but lawyers are already looking forward to how lessons learnt from the crisis will translate into new and better fund structures.

Independent directors: With the wealth of expertise and talent in the Cayman Islands, it seems inevitable that independent directors will become a mainstream business. A variety of models is emerging in the sector, and this new industry is leading the way among hedge fund jurisdictions with its professional code of conduct.

Audit and accounting: Insolvency, restructuring, litigation and liquidations, as well as the more common hedge fund audit, are keeping accountancy firms in Cayman busy. How the economic crisis will affect the sector and the number of new fund launches, however, remains an open question.

Fund administration: Fund administrators are facing unprecedented falls in assets under administration and a contraction of the industry. Most Cayman Islands administrators are weathering the storm and hope to emerge stronger, offering a variety of services to hedge funds. As they rise to the challenges presented in the new financial environment, many are looking at expanding services into new areas.

Stock exchange: Originally set up as a listing facility for specialist products, mutual funds and debt securities, the Cayman Islands Stock Exchange has expanded to list derivatives warrants, depository receipts and eurobonds. The exchange is looking forward to continued success, and the challenges its faces as a result of a global recession and a reduction in the number of new hedge funds launched.

What they say about Cayman Islands: Service providers, fund administrators, and legal and accountancy firms explain why they think the Cayman Islands remains the jurisdiction of choice for hedge funds.

Cayman Islands at a glance: Key facts, figures and information about the Cayman Islands.