Archive for December, 2013

Cayman’s SEZ wins Special Award

Saturday, December 28th, 2013

Cayman Enterprise City (CEC), Cayman’s 100% Caymanian owned and led special economic zone (SEZ) project won the prestigious Caribbean Export Development Agency and the Caribbean Association of Investment Promotion Agencies (CAIPA) Regional Investors of the Year Contest in the Special Award category after being invited by the Government of the Cayman Islands to enter on behalf of the Cayman Islands.

The announcement was made at the Regional Investor of the Year Award (RIYA) 2013 presentation on November 21- 22 in Belize.

Cayman Enterprise City CEO Charlie Kirkconnell was there to accept the award and was accompanied by Shannon Francis, Senior Investor Services Officer from the Cayman Department of Commerce and Investment which is a member of Caribbean Association of Investment Promotion Agencies.

Cayman’s Trade in Services is the Sole Net Foreign Exchange Earner in 2012

Monday, December 23rd, 2013

The Cayman Islands’ Balance of Payments (Current Account) Report 2012 was released on December 23, 2013.

This report summarizes the jurisdiction’s financial and economic transactions on goods and services, as well as income and transfers with the rest of the world. The data provided in it is used by credit rating agencies, creditors and foreign investors as general indicators of the country’s ability to service its foreign debt.

In 2012, the current account balance of Cayman was in deficit amounting to CI$ 485.6 million. The deficit is traced to a great extent to the deficit arising from trade in goods that amounts to CI$ 603.4 million, followed by the deficit in primary income transactions amounting to CI$ 264.5 million, and the deficit in secondary income amounting to CI$ 146.9 million. The latter is comprised mainly of workers’ remittances abroad.

Offsetting these deficits was a significant amount of surplus arising from trade in services which reached CI$ 529.1 million in 2012. Financial services, travel and other business services including legal and accounting led the services sector in realizing the surplus account for the jurisdiction.

World’s largest Captive Conference in Cayman sells out

Tuesday, December 10th, 2013

The 21st annual Cayman Captive Forum, believed to be the world’s largest captive conference, has sold out. 1,400 participants took part in a week of educational sessions, information sharing and networking.

The 2014 Cayman Captive Forum was held from December 4 to December 6 at the Ritz Carlton, Grand Cayman.

The Insurance Managers Association of Cayman (IMAC) chairperson Rob Leadbetter spoke about the state of the Cayman industry. He highlighted not only the issues facing the Cayman Islands, but how it has rallied together over the past year to face ongoing changes within the industry, for example, the introduction of new legislation including the new provisions relating to Portfolio Insurance Companies (PICs), the adaptation and introduction of new regulations, and the evidence of the success of these new initiatives resulting in a 17% increase of gross written premiums over the last year, namely USD 13.8 billion this year up from USD 11.83 billion as at December 31, 2012.

Cayman Premier Alden McLaughlin, Honourable Ministers Marco Archer, Osbourne Bodden, Kenneth Jefferson and Councilor Winston Connolly updated the delegates on the state of the industry, Government’s latest contributions and efforts on international regulatory initiatives, and Cayman’s co-operation with those initiatives.

Cayman Insurance Leader completes Recapitalization, expands Board of Directors

Saturday, December 7th, 2013

Advantage Insurance Holdings Ltd., a leader in customized insurance solutions for businesses and individuals, announced that it has completed a recapitalization transaction and that Tom Hutton, Bruce Shewmaker and Gary Witherspoon will join its Board of Directors.

As regards the recapitalization, the company contributed an additional $45 million of cash and investments to Advantage Life & Annuity Company SPC, the main insurance company subsidiary of Advantage.

Appointment of the new directors has been approved by the Cayman Islands Monetary Authority (CIMA) and will become effective on January 1, 2014. The new directors and continuing director David Whitefield are believed to meet the applicable requirements for independence under the rules of the US Securities and Exchange Commission and major stock exchanges.

Cayman and US sign FATCA Agreement

Wednesday, December 4th, 2013

The Department of the Treasury has announced that the United States has signed intergovernmental agreements (IGAs) with the Cayman Islands and Costa Rica to implement the Foreign Account Tax Compliance Act (FATCA).

To address situations where foreign law would prevent an FFI from of entering into an agreement directly with the IRS, Treasury has developed model IGAs. Signed on November 29, the IGA between the US and Cayman is the Model 1B version, meaning that FFIs in Cayman will be required to report tax information about US account holders directly to the Cayman Islands Tax Information Authority, which is the sole channel in Cayman for the provision of tax-related information to other governments. The Cayman Islands Tax Information Authority will in turn relay that information to the IRS.

Also, the United States and the Cayman Islands signed a new tax information exchange agreement (TIEA), to take the place of the original agreement signed in 2001.

The signing of the agreements was held in London, immediately after Cayman officials participated in the UK’s Joint Ministerial Council of Overseas Territories. Cayman’s Minister of Financial Services, Wayne Panton, welcomed the two new agreements and noted that the Cayman Islands is the first Overseas Territory to sign a FATCA agreement with the United States. He said: “Our participation in globally accepted transparency and tax information exchange initiatives speaks volumes of our financial services integrity”.