The Cayman Islands

Through its legislation and infrastructure the Cayman Islands provides a favourable business environment for investment vehicles with a global focus. This has led to the Cayman Islands earning its reputation as the pre-eminent jurisdiction for domiciling offshore investment funds, including hedge funds. Currently there are over 10,000 open-ended, regulated and licensed funds registered with the Cayman Islands Monetary Authority (CIMA). CIMA is the Islands’ primary financial services regulator. The total value of these funds is considerable and they play an important role in the global capital markets.

Some of the benefits of domiciling and administering a fund in the Cayman Islands include:

  • Favourable regulatory environment
  • Political, social and economic stability
  • Absence of exchange controls
  • Structural flexibility
  • Specialist service providers - the Cayman Islands is home to many of the world’s top professionals in the areas of law, accountancy, corporate services and investments expertise. Many of the world’s leading firms in these areas are well established in the Cayman Islands
  • Leading domicile for funds
  • Investor confidence and familiarity with Cayman structures
  • Tax neutrality - the jurisdiction has no direct personal, corporate or property taxes

As a jurisdiction, the Cayman Islands is committed to maintaining the highest integrity and standards of operation as evidenced by its adherence to international regulatory requirements:

  • CIMA is an ordinary (i.e., full) member of the International Organization of Securities Commissions (IOSCO). CIMA is officially a party to the IOSCO Multilateral Memorandum of Understanding Concerning Consultation, Cooperation and the Exchange of Information.
  • The Cayman Islands commitment to international tax transparency standards has been recognised by the Organization for Economic Co-Operation and Development (OECD), with being included on the OECD’s “White List” of jurisdictions that are compliant with international tax transparency standards.
  • It is recognised by the FATF (Financial Action Task Force) as a leader within the Caribbean region in the fight against money laundering and adheres to all of the relevant international supervisory standards.
  • The Cayman Islands have entered into a Model 1 intergovernmental agreement with the United States to facilitate the implementation of the Foreign Account Tax Compliance Act (FATCA), and was an early adopter of the Common Reporting Standards (CRS).

These endorsements further bolster the reputation of the Cayman Islands both as a hub for international cross-border transactions and investment funds.