While the U.S. Securities and Exchange Commission mulls the need for tighter hedge fund regulation, the government of the Cayman Islands is making an effort to make sure hedgies stay happy and feel welcome. Already the Caymans is home to about 75% of worlds hedge funds, with nearly half the $1.1 trillion AUM, and Cayman Financial Secretary Kenneth Jefferson told a recent conference down there that it is committed to make sure hedge funds keep calling the islands home sweet home. One issue of concern to hedgies, according to Caymanian Compass, pertains to immigration. Under Cayman law, overseas workers are permitted to toil on the islands for only seven years, forcing some talented foreigners out. Said Kurt Tibbets, Cayman Leader of Government Business, We will ensure that the terms and conditions of our immigration policy encourage no discomfort. We dont want the industry to suffer uncertainty with the regard to the quality of employees they can attract.
Meanwhile, speaking of the islands, a Cayman court has denied a petition by Clarke Hodgson, court-appointed receiver of troubled Philadelphia Alternative Asset Management, to liquidate the firm in the U.S. Observers said domestic hedge fund investors have a right to be protected by the laws of the firms jurisdiction.