Archive for the ‘Cayman legislation’ Category

Cayman Islands question UK Fiscal Proposals

Monday, December 5th, 2011

The government of the Cayman Islands says that it supports a document drafted by the UK’s Foreign and Commonwealth Office. The above-mentioned policy document requires that the administration in the Cayman Islands manages the jurisdiction’s fiscal affairs prudently, but has serious reservations over some elements of the plan.

The document is to be known as the Framework for Fiscal Responsibility. It is being negotiated between the United Kingdom and the Cayman Islands. It is expected to be signed following the document redrafting aimed to take into account the Cayman Islands’ government’s initial concerns.

Commenting on the document, the Cayman Islands Premier, McKeeva Bush said: “This government took over from a previous government that had borrowed and its overspending had placed this country in a dangerous financial position. Because of this, the United Kingdom government has asked us to sign an agreement with them. Based on the historical evidence of what can happen when a financially irresponsible government spends without any thought process or a carefully thought out plan, I am in favour of signing such a mutually-agreed Framework for Fiscal Responsibility.” According to him, it is understood that the government of the UK has seen the need to restrict their exposure in such circumstances because there is no guarantee as to what kind of spendthrift government will be elected in the future.

Bush said that the Framework for Fiscal Responsibility has been based on 4 fundamental tenets:
1. the government should undertake effective medium-term planning to ensure that the full impact of fiscal decisions is understood;
2. it should put value for money considerations at the heart of the decision-making process;
3. it should demonstrate effective management of risk;
4. the government should drive the delivery of improved accountability in all public sector operations.

FSB praises Cayman Islands for robust regulation

Thursday, December 1st, 2011

The Cayman Islands’ adherence to global regulatory and supervisory standards on international cooperation and information exchange has been found “sufficiently strong” by the Financial Stability Board (FSB). This was revealed in a report commissioned by the G20. It is worth mentioning that “sufficiently strong” is the highest assessment possible.

The FSB, a supranational body whose membership includes the OECD and the Committee on the Global Financial System, suggested that the Cayman Islands is one of 41 jurisdictions that, in the most recent International Monetary Fund-World Bank assessment reports, was determined to be compliant or largely compliant with all, except one, of the relevant cooperation and information exchange standards. As many as 61 jurisdictions were evaluated by the FSB.

According to Premier and Minister for Finance, McKeeva Bush, the FSB’s conclusions on the Cayman regime are a “robust affirmation that the jurisdiction is well-respected, and a good place to conduct business”. He also noted that, in terms of cooperation, the jurisdiction is placed alongside the giant economies of the G7 and G20 countries.

Chairman of the CIMA, George McCarthy, added that the assessment validates the extensive focus placed by the Cayman Islands on international cooperation and involvement in regulatory matters. He said that CIMA has put significant resources to ensure that the offshore jurisdiction meets international standards that relate to all the sectors we supervise.

Cayman and China sign Tax Treaty

Wednesday, October 5th, 2011

It has been announced by the Cayman Islands that the offshore jurisdiction has entered into an agreement on sharing tax information with China.

On September 26, the signing ceremony was held. At the event, the Cayman Islands’ Premier, McKeeva Bush said that signing this Tax Information Exchange Agreement is a significant step in enhancing the relationship between the Cayman Islands and China. He noted that China is one of the fastest growing economies in the world, so he expressed his confidence that this TIEA will contribute positively to economic activity between the two jurisdictions.

Bush said: “This is 26th signed agreement for exchange of information for tax purposes, and the People’s Republic of China has become another member of the G20 countries to have a TIEA with the Cayman Islands.”

Bush co-signed the agreement with Song Lan, the State Administration of Taxation Deputy Commissioner and Vice Minister. Both parties must conclude their individual ratification procedures before the agreement enters into force.

Cayman governor rejects visa-waiver proposal for Jamaicans

Saturday, October 1st, 2011

A request from the government for an across the board visa waiver for Jamaicans coming to the jurisdiction has been rejected by Governor Duncan Taylor.

According to a statement issued by the Office of the Governor, Cabinet had considered a proposal to ease the visa requirements for Jamaican nationals with a view to make it easier for children and the elderly to enter the Cayman Islands. The proposal could also foster business visitor travel from Jamaica. The government had recommended to remove the existing requirement to obtain a visitor’s visa for Jamaicans wishing to visit the Cayman Islands who are under the age of 15 years or over the age of 70 years or in possession of a valid Canadian, UK or US visa.

The statement said that the Governor was content on the first 2 points, however, he did not agree to the visa requirement being waived across the board for those Jamaican citizens holding valid Canadian, UK or US visas. He said: “I know that the vast majority of Jamaicans are law-abiding citizens. This includes residents who make a positive contribution to our society and economy in the Cayman Islands; and short-term visitors, including business visitors, whose visits are welcome and trouble free. There is, unfortunately, a small minority who has the potential to cause problems”. Taylor noted: “The Cayman Islands Immigration Department does not have the capability to determine whether such a visa is genuine or not and the respective countries have indicated that they are unable to provide the Cayman Islands with the access to the resources on which they rely to make these determinations.”

Taylor said that the introduction of a visa regime for Jamaicans in 2005 led directly to a significant reduction in the involvement of Jamaicans in crime in Cayman. He added: “Lifting the visa requirement as proposed could potentially allow unscrupulous Jamaican visitors to gain entry to the Islands using forged or counterfeit visas which could have a significant negative impact on the security of the Cayman Islands”.

BTG Pactual Group utilizes new Merger Legislation in Cayman Islands

Tuesday, June 28th, 2011

Ogier Cayman has acted as advisor to BTG Pactual in the deal that is considered to be 1st merger of a licensed financial institution using the revised merger provisions in the recently-enacted Companies (Amendment) Law 2011 in the Cayman Islands.

The leading Brazilian investment bank BTG Pactual S.A. has operations in Brazil, New York and London, is the dominant asset and wealth manager in Latin America. The bank is part of the BTG Pactual Group that has been operating in this offshore jurisdiction since 1998 through its subsidiary BTG Pactual Banking Limited and holds a class-B banking licence.

The reorganization involved merging BTG Pactual Banking Limited into BTG Pactual S.A. with the result that offshore banking operations are now conducted through a Cayman branch of BTG Pactual S.A. rather than by a subsidiary.

The above-mentioned merger was completed under Cayman law. However, BTG Pactual S.A., which is the surviving entity, remains a Brazilian company. Before the amended merger provisions introduced in April 2011, it was possible to merge a Cayman company with a foreign company if the surviving entity was a Cayman company.

A new structure for BTG Pactual S.A. in the Cayman Islands offers greater efficiencies to support the activities of its businesses worldwide. Joao Dantas, Executive Director of BTG Pactual S.A. said that long-standing presence and relationship in the Cayman Islands is key for the company’s international activities and that the new structure will help expand its businesses and products without affecting the services provided in the Cayman Islands.

Cayman Islands to introduce Hedge Fund Levy

Tuesday, June 14th, 2011

Certain types of hedge funds for the first time will be regulated and taxed by the Cayman Islands. This measure has been introduced under a new measure brought in by the Budget.

The Budget that was delivered by Premier and Finance Minister McKeeva Bush on June 10, 2011 introduced only one new revenue measure.

This provides for the regulation of “master funds” in particular by the Cayman Islands Monetary Authority (CIMA). As noted by Bush, this is the general practice in other offshore jurisdictions. Such funds are not currently regulated in the Cayman Islands, but, under the new rules, will be obliged to pay a KYD 1 500, which is USD 1 842 fee per year.

Companies Law amended by Cayman

Monday, May 2nd, 2011

As a result of a consultation process, the Cayman Islands is to amend its Companies Law in order to enhance the competitiveness of its financial services industry.

When tabling the Companies Law (Amendment) Bill, 2011, McKeeva Bush, Cayman Premier and Finance Minister, highlighted that the expected benefits the jurisdiction’s local industry is to reap and noted that new opportunities for growth are predicted.

The Bill’s drafting was participated in by the Ministry of Finance, the Registrar of Companies, and the Cayman Islands Monetary Authority (CIMA).

Provisions of the Companies Law include the following:
- amendments to the Cayman Island’s merger provisions;
- updates to foreign company provisions;
- special resolutions permitting different thresholds for different matters;
- changes to treasury shares, share redemption and repurchase, and paperless share transfer;
- permitting company names in a foreign script;
- segregated Portfolio Companies (portfolio names, director’s liability, segregation of assets and termination of SPCs).

Bush said that the process by which these amendments were prepared reveals the government’s renewed partnership with the private sector, ”which has been instrumental in soliciting the views of industry and providing input into the drafting process”. He noted: “These amendments are the end result of an extensive consultation process, aimed at addressing client and market-driven issues that have arisen in practice. It is expected to increase the attractiveness of the Cayman Islands as a domicile for corporate entities and maintain our competitive edge”.

Temporary Pension Holiday Ends in Cayman

Monday, April 25th, 2011

The Cayman Islands’ temporary 1-year pension contribution suspension is to end, which is to affect private sector both employers and employees, as well as self-employed individuals.

In April, 2010, this measure was introduced with an amendment to the National Pensions Law. The measure was to provide a temporary 1-year suspension of pension contributions and a temporary 2-year suspension period for non-nationals. According to the government of the Cayman Islands, it was implemented in response to the global economic recession. It was aimed at easing people’s financial burdens and stimulating the economy.

Recently, the Cayman government has issued a reminder that, as of April 26, Caymanians from their first day of employment are pensionable immediately, required to participate in a pension plan and pay pension contributions.

Rolston Anglin, the minister responsible for pensions, commented: “These contributions are extremely important to continue each employee’s long-term savings for retirement. It’s a critical part of their retirement planning”.

Cayman to relax visa requirements for Jamaicans

Monday, December 20th, 2010

The Cayman Islands is intending to relax visa requirements for Jamaicans travelling to the British territory in January 2011.

On December 17, this announcement was made by Premier McKeeva Bush at the inaugural Northern Caribbean Conference on Economic Co-operation, hosted by Jamaica National Building Society (JNBS).

Visa exemptions may be applied by Jamaican Nationals who hold validated US, UK or Canadian visas.

Cayman Islands signed TIEA with Mexico

Friday, September 3rd, 2010

The Cayman Islands has signed Tax Information Exchange Agreement with Mexico, aimed at further strengthening international cooperation regime of the jurisdiction. The TIEA was considered legally binding after being signed by the Cayman Islands Premier and Minister of Finance McKeeva Bush and Ernesto Javier Cordero Arroyo, Minister of Finance and Public Credit for Mexico. The agreement was signed on 28 August 2010. This is the twentieth TIEA for the jurisdiction, the last one was signed between the Cayman Islands and Canada. The Cayman Islands has TIEAs with other countries – members of G7 and G20, including Australia, Germany, France, the United Kingdom and the United States.

Premier McKeeva Bush said in his comments that this agreement also signifies new chapter in the relationship between Mexico and the Cayman Islands, “encouraging further economic development and improved relations, boosting the jurisdiction’s reputation amongst Mexican investors.”