Archive for the ‘Cayman Services General Information’ Category

Cayman-Registered Firms number exceeds 100,000

Saturday, August 20th, 2016

The number of active companies on the Cayman Islands company register has exceeded 100,000 for the first time. Currently, there are more than 19,000 active partnerships in the jurisdiction.

According to figures from the Cayman Islands General Registry, at the end of the 2nd quarter, 101,430 companies were listed as active, which is 3% more than a year earlier and 2.6% more than at the end of 2015.

New Cayman-registered partnerships increased by 1% in the 12 months to June compared to the same period last year. A total of 3,334 new partnerships were incorporated during 2015, continuing the trend of uninterrupted annual growth since 2009/10.

As of July 1, 2016, 923 new partnerships were registered, significantly exceeding the 588 partnership terminations. The net result is that there are now more than 19,000 active partnerships set up in the jurisdiction.

The newly-introduced limited liability company (LLC) form attracted 21 registrations in the 1st month, while the number of trusts on the register dropped by 1% to 1,784 in the 1st 2 quarters of this year. This continues a trend of small declines since 2014, according to Cayman Finance, the island’s financial services promotional agency.

Jude Scott of Cayman Finance commented: “It’s always great to see growth in Cayman’s financial services industry and this is a significant milestone of which we should all be proud. Milestones such as this are further evidence of the global financial services industry’s recognition of Cayman’s transparency and robust regulatory regime.”

Calderwood launch brings new Independent Director Firm to Cayman

Thursday, June 2nd, 2016

Calderwood, a fund governance firm providing Independent Directors to Investment Funds, has officially launched and is now open for business, providing experienced independent directors to a range of investment vehicles.

Calderwood has been formed by Ronan Guilfoyle and Wade Kenny, well-known in the Cayman fund sector, serving as independent directors on some of the largest funds in the industry.

Mr. Guilfoyle was previously a Managing Director at DMS Offshore Investment Services and was significantly involved in the firm’s strategic development, sharing leadership responsibility for its European offices and spearheading its international expansion. As an Executive Director, also at DMS, Mr. Kenny provided fund governance services to a large portfolio of hedge fund and private equity clients, in addition to providing management oversight for the Cayman office.

Mr. Guilfoyle said: “Our experience with every aspect of the hedge fund business, including successfully guiding funds through the financial crisis and systems that match the needs of our clients with the industry, alongside our ability to focus exclusively on our new clients, is together a very attractive proposition for fund managers in the current climate of heightened risk awareness.”

2015 New Cayman Captive Formations go on growing

Friday, January 22nd, 2016

The Cayman Islands captive insurance industry enjoyed robust new captive formation numbers throughout 2015 with 22 new licences being recorded, which exactly mirrored the previous year’s numbers.

The total number of B, C and D licencees domiciled in the Cayman Islands as at 31 December 2015 was 708, pure captives representing 369 of these, a further 140 being segregated portfolio companies with 124 being group captives. Combined, in 2015, these licencees wrote premiums of USD 12.7 billion, as compared with USD 12 billion in 2014, and held total assets of USD 58 billion, as compared with USD 51.5 billion in 2014.

The Cayman Islands remains the leading jurisdiction for healthcare and group captives, with 34% and 17% of market share, respectively. Cayman captives are increasingly being put to use for innovative lines of business and risk such as insuring; employee medical stop loss, medical groups, cyber/privacy breach and equipment maintenance.

The full statistics is available through the Cayman Islands Monetary Authority (CIMA).

1MDB defends Cayman funds

Thursday, December 25th, 2014

The decision to invest billions of ringgit in funds abroad is a financially astute move. This was explained by 1Malaysia Development Berhad (1MDB). It was added that it has helped the company make substantial gains at a time when ringgit is softening against the US dollar.

Also, such move has also helped mitigate its foreign exchange risks.

“Essentially, investing some of our cash reserves, specifically those in US dollars, in international fund jurisdictions such as the Cayman Islands has helped mitigate our foreign exchange risks and allowed the funds invested there to benefit from the comparative strength of the US dollar,” it said.

1MDB was responding to PKR lawmaker Wong Chen’s demand for the firm to repatriate its money as it had made huge gains due to the slide of the ringgit against the US dollar.

The ringgit had declined by 6.5% in the past 9 months to RM3.48 against the greenback.

The Kelana Jaya MP had said the funds, which were likely in US dollars, were moved to the Cayman Islands, known as one of the world’s largest registered fund jurisdiction, in September 2012 when the exchange rate between the greenback and the ringgit was at USD 1 to RM3.07.

Additionally, since a portion of 1MDB’s debt is in US dollars, the funds parked in the Caymans acts as a natural currency hedge.

Chairman of the firm’s board of directors Tan Sri Lodin Wok Kamaruddin said that there was nothing unusual about companies of 1MDB’s size investing their funds in the Caymans, with the Cayman Islands Monetary Authority recognised as one of the leading fund regulators in the world.

He added that thousands of international blue-chip companies have funds regulated by the Cayman Islands Monetary Authority, including more than 200 Malaysian companies.

Cayman Islands to quash Fund Investment Taboo

Friday, March 1st, 2013

The Cayman Islands’ Chamber of Commerce has challenged critics of the tax affairs of the new US Treasury Secretary Jack Lew, following reports that he had held investments in Cayman during his private sector career. The reports said that the investments were held in a Cayman Islands investment fund domiciled in Ugland House.

According to the opposition, the appointment of Lew highlights the duplicity of the Obama Administration’s response to offshore investments following incessant pre-election criticism of the tax affairs of the Republic presidential candidate Mitt Romney.

The Cayman Islands’ Chamber of Commerce commented: “At this juncture, it is perhaps worth asking why people are still surprised that Americans, including both Republicans and Democrats, have money invested in Cayman investment funds, when it is certainly the case that all Americans who have a pension fund will likely have their money indirectly invested in a Cayman private equity or hedge fund.”

It also states that there is nothing wrong with that at all as the Cayman Islands is the domicile of choice as well as a centre of excellence for some of the world’s leading international investment funds.

The Chamber of Commerce said that it is high time that jurisdiction’s important role in the global economy and capital markets is better understood by policy makers.

Cayman Regulatory Framework Endorsed

Tuesday, May 15th, 2012

Cayman Finance has welcomed the results of an independent study which places the Cayman Islands among only 2 offshore jurisdictions which have consistently implemented internationally-accepted standards on identity verification during due diligence (DD) processes. The study was carried out by Professor Jason Sharman of Griffith University in Australia.

Chairman of Cayman Finance Richard Coles said that this study confirms what Cayman Islands officials and industry have been saying, i.e. that the Cayman Islands is one of the most diligent jurisdictions in the world when it comes to the fight against money laundering and terrorist financing.

Coles noted that it is particularly important to see such positive results of an independent study after the investment that the Cayman Islands has made in enhancing its regulatory framework over the past 15 years. However, he stated that awareness of the high standards upheld in the Cayman Islands is unfortunately still lacking across the wider international community which seems to be dominated more by stories which perpetuate the old image of offshore being less regulated.

The study showed that the corporate service providers in the Cayman Islands were top of the table of over 183 countries because they required a full suite of identification documentation. Another offshore jurisdiction that had a perfect compliance record, according to the results of the study, was the Isle of Man.

Cayman Islands as captive insurance domicile

Sunday, April 15th, 2012

Captives are insurance companies that only insure the risks or part of the risks of its parents, or are wholly-owned insurance subsidiaries of organisations not in the insurance business. They are generally owned through a common interest which is not primarily in the insurance business. This interest may be a single-parent shareholder or a group of shareholders. A significant proportion of the risk written is ‘captive’, related in some way to the risks of shareholders, or third party risks which the shareholders control. So, a captive is an insurer that writes risks whose origins are restricted, or those risks to which it has unique access.

Captive insurance has a history of success in the Cayman Islands. During the 1970s, there was a major crisis in the professional liability market in the United States. Because of that, a prominent US medical college developed the first Cayman Islands captive insurance company to provide
coverage for its medical malpractice risks for physicians. Soon, others followed. As a result, a regulatory framework was developed and the Insurance Law introduced in 1979.

A Cayman Captive has the following benefits:
• Top domicile with track record of success and innovation
• Flexibility to tailor coverage
• Cost reductions
• Risk retention, risk management and loss control
• Cash flow benefits
• Tax minimisation or deferral
• Access to the reinsurance market
• Diversification into a profit
• ‘Unbundling’ of services
• Reduction of government regulations and restrictions
• Highly developed captive support industry with experienced professionals

Currently, the Cayman Islands is the second largest offshore captive insurance domicile, and the leading domicile for health care captives in the world. Business is made by a various of companies, from small private shareholders to large public corporations.

Cayman airport expands to travel to US

Monday, March 26th, 2012

The Cayman Islands has announced that it is expanding an airport with a view to allow direct flights from Cayman Brac to the United States.

According to Airport Authority marketing manager Caren Thompson-Palacio, the expansion of the Gerrar-Smith International Airport is expected to boost tourism on the island. The construction should start in the next couple of months but an estimated cost for the project is not known yet.

Currently, travelers going from Cayman Brac to Miami must stop first in Grand Cayman as the smaller airport lacks adequate passenger screening facilities.

Offshore Incorporation Specialist providing registrations in Cayman Islands expands into Europe

Saturday, September 10th, 2011

Offshore Incorporations Limited (OIL) is opening its first European office in London. This leading global company formation specialist based in Asia commented that the move will allow to further support Asia-based companies which increasingly require international structures to facilitate strong capital flows from Asia to Europe.

Offshore Incorporations Limited serves professional intermediaries. The company specializes in offshore company formation the Cayman Islands as well as Anguilla, the Bahamas, the British Virgin Islands, Delaware, Hong Kong, Mauritius, Samoa, the Seychelles and Singapore.

CEO for OIL, Martin Crawford, said that this is the 1st step aimed to expand OIL’s presence across Europe and it is an exciting milestone for the business that has just celebrated 25 years in Asia. He said: “We wish to continue supporting our clients as they grow globally and require a wider variety of services for their offshore activities. You just need to look at the fact that over 50% of new properties in London are purchased by Asian investors to see the growth in demand.”

Cayman Finance names new Chairman

Tuesday, April 19th, 2011

Cayman Finance, a private-sector membership-based organisation that promotes Cayman’s financial services industry through public relations, public affairs and marketing initiatives has announced that Richard Coles has been voted in as its incoming chairman.

Coles is former Attorney General for the Cayman Islands with an impressive resume. He is currently an independent director for hedge funds, structured finance vehicles and investment and financial sector companies and had built a successful law firm in England before he moved to the Cayman Islands. So, he should be a good leader for Cayman Finance, which is the voice of Cayman’s financial services industry.

At an annual general meeting of Cayman Finance held on April 13, 2011, Coles was talking about his commitment and his capabilities to further develop Cayman Finance’s relationship with the Cayman Government.

Also, a new board was elected. The directors of Cayman Finance are Peter Cockhill (Ogier), Nick Freeland (PWC), Gonzalo Jalles (HSBC), Mark Lewis (Walkers), Roy McTaggart (KPMG), Conor O’Dea (Butterfield), David Roberts (Cayman Management), Daniel Scott (Ernst & Young), Henry Smith (Maples and Calder), Ian Wight (Deloitte).