Archive for June, 2011

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.

Cayman-Canada TIEA enters into force

Monday, June 6th, 2011

On June 1, 2011, the Tax Information Exchange Agreement (TIEA) signed between Canada and the Cayman Islands entered into force. The document was signed by the jurisdictions on June 24, 2010.

The treaty is applicable to taxes on income and taxes on capital in each territory. The TIEA provides for the exchange of information relevant to the administration of domestic tax laws, and to the collection of tax, and investigation or prosecution of criminal matters. It also permits the request of information held by banks and other financial institutions, and information relating to the ownership of companies, partnerships, trusts and foundations.