The Cayman Islands continues to maintain its dominant position as a leading global financial hub, efficiently connecting law-abiding users with providers of investment capital and financing worldwide, benefitting both developed and developing countries.
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The Cayman Islands continues to maintain its dominant position as a leading global financial hub, efficiently connecting law-abiding users with providers of investment capital and financing worldwide, benefitting both developed and developing countries. Cayman’s commitment to excellence and modern legislation are a few key elements of its performance, particularly in capital markets and investments. Cayman is one of the world’s leading international financial centres. Alongside this, Cayman is strengthened by its close connections to the United Kingdom as a British Overseas Territory. Cayman is the number one domicile for healthcare and group captives, and continues to excel globally in banking, capital markets, trusts and fiduciary services.
The success of the financial services industry is attributed to our sound regulatory regime and political and economic stability, supported by highly skilled and experienced service providers. Additionally, we ensure adherence to international standards and we are committed to supporting global efforts to fight financial crime. Cayman is a leading jurisdiction worldwide for mutual funds and its strong international reputation has come due to our commitment to the principles of openness and transparency and we have continuously improved our legislation to meet international demands. This includes recent amendments to the Mutual Funds Act and the enactment of a Private Funds Act which implemented new rules for the registration, administration and supervision of funds.
Regulated by the Cayman Islands Monetary Authority, banking in the Cayman Islands is a major part of Cayman’s financial sector, with 94 banks licensed as of December 31st 2022.
According to the Cayman Islands Judicial Administration there are are 1066 licensed attorneys as of January 30th 2023 and 66 law firms. Many of these firms have a strong global presence and are internationally renowned. Quite a number of local firms have several offices operating around the world – from London to Hong Kong making the Cayman Islands as one of the premier jurisdictions for legal services.Read More
The Cayman Islands is a well regulated business environment, so it is not surprising that some of the top international accounting firms have offices here. Most of these international branches operate as full service firms.
The prominence of hedge funds (or ‘mutual funds’ as defined in the Mutual Funds Act) in the Cayman Islands and the growing investment interest in them by institutional and sophisticated and/or high net worth investors has steadily increased in recent years.
As perhaps one of the most publicly recognised applications of FinTech, cryptocurrencies are virtual currencies that use cryptography to secure and verify transactions, and to control the creation of additional units. But Fintech – a shortened form of ‘financial technology’ is broader than just cryptocurrencies.
A growing sector of the Cayman Islands financial services industry is the provision of independent directors. During the recent financial crisis, it became apparent that independent directors from the Cayman Islands were indispensable when hedge funds were faced with making difficult decisions.Read More
The enactment of the Insurance Act (2010) (the ‘Insurance Law’) was a result of public and private sector collaboration in an effort to improve the regulation of insurance business in the Cayman Islands, enhance protection for domestic consumers and open new frontiers of business development.
The main provisions of the Insurance Act include what were at the time two new categories of insurer licences – Class C (Special Purpose Vehicles) and Class D (Reinsurers). It also includes whistle‐blowing provisions, enhanced domestic policy holder protections and provides for increased penalties and regulatory powers by the Cayman Islands Monetary Authority, regulator of Cayman’s financial services sectors.
In March 2013, Cayman introduced incorporated cell legislation for segregated portfolio insurers. The Insurance (Amendment) Act (2013) confers several advantages, such as allowing a portfolio insurance company (“PIC”) the flexibility to transition to a stand‐alone captive unlike an unincorporated cell. The Insurance (Portfolio Insurance Companies) Regulations, 2015 were brought into force on 16 January 2015, along with the related section of The Insurance (Amendment) Act, 2013. These regulations enhance the insurance statutory framework, providing more alternatives to risk management by enabling insurers incorporated as Segregated Portfolio Companies (“SPCs”) more flexibility.
In June 2022, the Insurance Act, 2010 was amended by the Insurance (Amendment) Bill, 2022 so as to allow capital redemption contracts or funding agreements, i.e. contracts under which an insurer may (a) receive and accumulate sums of money; and (b) pay a sum or sums of money or render money’s worth, on dates and in amounts that are not contingent on human life or against risks of the person insured. The new law also introduces new licence categories for insurance companies, namely an expanded B (iii) category and a new B (iv) category that provide more options and opportunities for a potential insurance company.
The Cayman Islands remain one of the leading jurisdictions for captive insurance in the world, with 128 group captives totaling over US$3.64 billion in premiums and US$10.5 billion in assets as of Q3 2022..Read More
The reinsurance industry is the Cayman Islands has been growing year on year.
As a global centre of excellence for trusts, the Cayman Islands financial sector has serviced international clients for decades with what is the most flexible instrument for wealth structuring and estate planning.Read More
Several of Cayman’s law firms specialise in capital markets and structured finance transactions for international clients.
The Cayman Islands is continuing to be the domicile of choice for US CLO managers. CLOs securitise assets, typically leveraged loans, by pooling them together and paying out income and principal repayments from the pool to note holders.Read More
Based in George Town, Grand Cayman, the Cayman Islands Stock Exchange began trading in 1996, and since its inception, it has approved securities for admission for a total market capitalisation of over US$929.2 billion.Read More