Investors in Cayman Islands hedge funds may not be able to redeem their investments, after a landmark ruling was passed yesterday to allow directors of funds to suspend withdrawals, even for investors who have already had their redemption notice accepted.

The Cayman Islands Court of Appeal passed the law last week which stated that: "Given the investment climate and the rush by Investors to redeem their investments...the Court of Appeal affirmed that the express right to suspend redemptions."