AIFMD Approval Boosts Fund Industry in Cayman Islands, BVI and Jersey

European Parliament Vote Removes Uncertainty for Non-EU Fund Managers

GRAND CAYMAN, Cayman Islands, November 15, 2010 - Walkers, the leading international financial centre law firm, welcomes
the confirmation of the final terms of the Alternative Investment Fund
Managers Directive ("The Directive") and the removal of uncertainty for
non-European Union (EU) fund managers marketing non-EU funds in the European
Union, as a very positive development for the investment funds industry in
the Cayman Islands, British Virgin Islands (BVI) and Jersey.

The final terms of the Directive, which were approved by the European
Parliament on November 11, 2010, allow for the distribution of non-EU funds
to professional investors in the EU through both a private-placement regime
and a passport system. The private-placement regime, which has been the
traditional method of distribution in the EU for non-EU funds, will remain in
place at least until 2018. It is proposed that this regime will transition in
2015 to allow full access to an EU passport marketing regime to non-EU funds
on the same terms as EU funds. EU funds will become eligible for a passport
in 2013.

"The confirmation that non-EU fund managers will be able to continue
marketing Cayman Islands, BVI and Jersey funds to professional European
investors is excellent news for the industry," said Rod Palmer, partner and
Global Head of Investment Funds with Walkers.

The private-placement marketing regime introduces certain conditions for
non-EU funds to be distributed in the EU. Those conditions include the need
for supervisory co-operation agreements between the regulator of the EU
member state in which a fund is being marketed and the regulator of both the
fund manager and the fund. In addition, the country in which both the fund
and the fund manager are established cannot be on the Financial Action Task
Force (FATF) blacklist. Funds also need to comply with certain basic
transparency and reporting requirements.

"The Cayman Islands, BVI and Jersey are very highly rated by the FATF in
respect to their anti-money laundering regimes, which means they will not
have to make any changes in their funds' operations to comply with the
Directive," said Richard May, partner with Walkers based in the British
Virgin Islands.

Access to the EU marketing passport will be subject to similar conditions
to the private placement regime. In addition to satisfying those conditions,
the non-EU fund manager will require to be authorised in an EU member state
(its member state of reference). OECD-compliant tax information exchange
agreements will need to be in place between the fund domicile and both the
fund manager's EU member state of reference and each other member state in
which the fund interests are proposed to be marketed.

"In our recent discussions on the Directive, the Cayman Islands Monetary
Authority confirmed their commitment to entering into co-operation agreements
with EU regulators as a matter of priority," said Jennifer Thomson, partner
with Walkers in the Cayman Islands. "This follows Cayman's long history of
working with regulators worldwide and reflects Cayman's own strong regulatory
framework. We know Jersey and BVI regulators share this commitment as well."

Each of the Cayman Islands, BVI and Jersey appears on the OECD's 'White
List' of nations which have substantially implemented the internationally
agreed standards on tax and information exchange, and they continue to enter
into new tax information exchange agreements (TIEAs) with EU member states,
among others. Currently the Cayman Islands, BVI and Jersey have collectively
entered into nearly 60 TIEAs, with more pending.

"A further positive outcome for the industry is that the Directive does
not apply to passive marketing or reverse solicitation of non-EU funds,"
added Jonathan Heaney, Head of the Investment Funds Group in Walkers' Jersey
office. "This means that European investors may contact non-EU fund managers
and invest in Cayman, BVI or Jersey funds even if the fund manager does not
satisfy the conditions of the Directive."

About The Walkers Group

From offices in the British Virgin Islands, Cayman Islands, Delaware,
Dubai, Dublin, Hong Kong, Jersey, London and Singapore, the Walkers Group
provides legal and management services to leading FORTUNE 100 and FTSE 100
global corporations and financial institutions, capital markets participants,
investment fund managers, and growth-and middle-market companies. The Walkers
Group is comprised of leading offshore law firm, Walkers and Walkers
Management Services, which specialises in corporate and fiduciary services.

Walkers' expertise has been validated by numerous awards including
"Offshore Law Firm of the Year" by Alpha Magazine, The Lawyer, PLC Which
Lawyer? and Asian Legal Business. Walkers has also been honoured as the PLC
Which Lawyer? Yearbook Leading Cayman Islands Law Firm, Who's Who Legal Law
Firm of the Year: Cayman Islands and has shared honours for "Offshore Legal
Team of the Year" by the Society of Trust and Estate Practitioners (STEP).
Many of Walkers' attorneys have also been recognised by the industry and
their peers.

For more information on the Walkers group, visit us on the web at
www.walkersglobal.com or contact us by e-mail at
info@walkersglobal.com. To contact Walkers by phone, call our Cayman Islands
office at +1-345-949-0100.

Kelly Cross, Levick Strategic Communications for Walkers, +1-202-973-5301, kcross at levick.com