The Cayman Islands and 25 European countries signed a memorandum of understanding (MOU). The MOU would enable Cayman Islands hedge funds to be marketed throughout the European Union.

The MOU concerned the Alternative Investment Funds Management Directive (AIFMD). The AIFMD will be implemented across the region from July 22, 2013. The AIFMD will require non-EU countries to meet certain conditions before they can market hedge funds and other alternative investment funds in the EU.

The managing director of the Cayman Islands Monetary Authority (CIMA), Cindy Scotland signed the MOU on behalf of the authority. Scotland's counterparts from 25 European financial authorities signed the MOU last May 22, 2013.

Only five countries had not signed the MOU, namely Spain, Italy, Slovenia, Austria, and Germany. "Given the importance of Europe as a market for Cayman hedge funds, we have contacted the five European countries which have not yet signed with a view to securing signed MOUs," said Scotland.