On September 19, 2019, a foreign-related legal exchange meeting on the theme of “The Latest Development in the Cayman Fund Market” was held at ZhongYin Law Firm. The meeting was chaired by the firm’s director and senior partner Yan Penghe and partner Zhang Hui. Lin Yixuan, a senior offshore attorney from the Hong Kong office of Ogier Law Firm, shared his wonderful opinions.

Yan Penghe introduces the development of the firm and the background of the exchange meeting

Lin Yixuan shares his wonderful opinions

On January 1, 2019, the International Tax Co-Operation (Economic Substance) Law, which was promulgated by the Cayman Islands, came into force. Subsequently, in February 2019, the Cayman Islands passed the Economic Substance for Geographically Mobile Activities Guidance, which is subordinate to the law. The enactment of the forgoing law and guidance has quickly drawn extensive attention in China. How to deal with the challenges brought by the economic substance law has become a hot topic.

The main content of the Cayman economic substance law and guidance can be simply summarized into a provision that “related entities” engaging in “related activities” shall meet specific “economic substance requirements”. Lin Yixuan conducted a deep analysis on the economic substance law, around issues such as the influence of the economic substance law on the structure of the Cayman funds after its effectiveness, the definition of “related entities”, and the consequences of failure to meet the “economic substance requirements”.

Partner Yu Limiao and Associates Niu Baoyuan, Yan Buwei, and Jiao Xiaofei of ZhongYin, Qi Da, Manager of International Legal Affairs of Beyondsoft Co., Ltd., and Zhong Hongbo, the Deputy Director of Beijing Branch of KCS Management & Consultancy (China) Co., Ltd. also attended this exchange meeting and had a heated discussion with Lin Yixuan on the practical issues of their concern.

Ogier Law Firm

Ogier Law Firm is the only offshore law firm that practices the laws of five jurisdictions, namely British Virgin Islands (BVI), Cayman Islands, Guernsey, Jersey and Luxembourg, and was named as the “Offshore Law Firm of the Year” in the ALB Hong Kong Law Awards in 2019.

ZhongYin Law Fimr

ZhongYin Law Firm is one of the most influential law firms that are the first to practice in the area of finance and securities in China. In recent years, ZhongYin has actively explored overseas markets and built a global legal service system, and promoted its practice in various areas to be in a leading position.