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, benefiting both developed and developing countries.
On This Page
- Ministry of Financial Services and Commerce
- Banking Industry
- Attorneys & Law Firms
- Accounting Firms
- Investment Funds
- Fintech
- Independent Directors
- Insurance Legislation
- Captive Insurance
- Reinsurance
- Trusts & Foundation Companies
- Structured Finance
- Collateralised Loan Obligations (CLO)
- Cayman Islands Stock Exchange (CXC)
Cayman’s success in the highly competitive global financial industry is the result of many factors, including its political and economic stability, sound regulatory regime, tax neutrality and its responsive and well-developed common law legal system based on English law. The presence of world-class service providers is a major attraction for clients, as is its stable banking environment and the absence of exchange controls.
Cayman’s status as an overseas territory of the United Kingdom and its regime of international cooperation in the areas of tax information exchange, regulation and law enforcement provide the necessary level of confidence in Cayman’s sophisticated, hospitable and predictable financial environment. This has made Cayman the destination of choice in the financial services industry, a place where law-abiding users can be connected with providers of investment capital and financing worldwide, benefiting both developed and developing countries.
Cayman is the leading domicile globally for mutual funds, the second leading domicile for captive insurance and is becoming an increasingly attractive destination for reinsurance companies. The need to demonstrate ‘economic substance’ for tax purposes is also leading many international firms to move parts of their business to Cayman, driving significant growth in the legal and financial sectors that provide services to these companies.
However, there is concern in the industry about the potential impact of immigration reform on the ability of firms to hire the talent they need to stay competitive. The industry works hard to develop Caymanian talent and with near full employment of appropriately qualified Caymanians, but the industry is also reliant on the ability to hire talent from overseas to drive growth.
Ministry of Financial Services and Commerce
The Ministry for Financial Services and Commerce advises elected officials in developing and implementing the commercial and regulatory framework for financial services and commerce, which supports the local economy. Financial services remains the Cayman Islands’ primary economic pillar.
To encourage the Cayman Islands’ continuing economic growth, stability and reputation as a sound place for business, successive Governments have committed to international tax cooperation and global regulatory standards that counter illicit finance, including money laundering and terrorist financing. The Ministry supports compliance with these longstanding commitments through policy and legislative development, and by putting the policy and legislation into action through the Government agencies, statutory authorities, and government company that it oversees.
The agencies are the Cayman Islands Intellectual Property Office; the Department of Commerce and Investment; Cayman Islands Centre for Business Development; the Department for International Tax Cooperation; General Registry; and the National Maritime Affairs Secretariat. The Authorities are Auditors Oversight Authority; Cayman Islands Monetary Authority; Civil Aviation Authority of the Cayman Islands; and the Maritime Authority of the Cayman Islands. The government company is the Cayman Islands Stock Exchange.
For more information or to get in touch with the MFSC call (345) 945 5819, email: mfscpublic@gov.ky or visit www.gov.ky/mfsc/.
Banking Industrykeyboard_arrow_right
Regulated by the Cayman Islands Monetary Authority (CIMA), banking in the Cayman Islands is a major part of Cayman’s financial sector, with 79 banks licensed as of June 2025.
Attorneys & Law Firmskeyboard_arrow_right
According to the Cayman Islands Judicial Administration there are are 1,207 licensed attorneys as of September 2025 and 80 law firms. Many of these firms have a strong global presence and are internationally renowned. A number of local firms have several offices operating around the world – from London to Hong Kong making the Cayman Islands one of the premier jurisdictions for legal services.
Read MoreAccounting Firmskeyboard_arrow_right
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.
Investment Fundskeyboard_arrow_right
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.
Fintechkeyboard_arrow_right
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.
Independent Directorskeyboard_arrow_right
A growing sector of the Cayman Islands financial services industry is the provision of independent directors. During and after the global financial crisis, independent directors based in the Cayman Islands added significant value as alternative investment funds faced difficult decisions aimed at ensuring investor interests were appropriately protected.
Read MoreInsurance Legislation
The enactment of the Insurance Act, 2010 (the Insurance Act) was a result of a public and private sector collaboration to improve the regulation of insurance business in the Cayman Islands, enhance protection for domestic consumers and open new frontiers for international business development.
The main provisions of the Insurance Act included, what were at the time, two new categories of insurer licences—Class C (special purpose vehicles for insurance-linked securities (ILS)) and Class D (large commercial reinsurers). Since 2010, there have been further developments to the Insurance Act, and in March 2013, Cayman introduced incorporated portfolio legislation for insurers structured as Segregated Portfolio Companies (SPCs). The amendment in 2013 conferred several advantages, such as allowing a portfolio insurance company (PIC) the flexibility to transition to a stand‐alone insurance company, unlike an unincorporated cell. The Insurance (PIC) Regulations 2015 were brought into force in January 2015, along with the related section of the Insurance (Amendment) Act, 2013. These regulations enhance the statutory insurance framework, providing additional alternatives to risk management by providing insurers incorporated as SPCs more flexibility.
In June 2022, the Insurance Act was amended by the Insurance (Amendment) Act, 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. In July 2024 and January 2025 respectively, further amendments were made to the Insurance Act which, amongst other things, included references to the beneficial ownership regime and clarified certain points regarding fees payable by PICs.
Captive Insurancekeyboard_arrow_right
The Cayman Islands remain one of the leading jurisdictions for captive insurance in the world.
As of Q2 2025, there were 687 Class B insurers licensed in the Cayman Islands, writing approximately US$31.8 billion in premiums and with total assets of US$123 billion, cementing Cayman’s position as the second largest captive insurance domicile globally.
Reinsurancekeyboard_arrow_right
The reinsurance sector has emerged as a significant component of Cayman’s international insurance business in recent years. By the end of Q1 2025, the number of reinsurance licences reached 103, with total assets valued at upwards of US$93.2 billion.
Trusts & Foundation Companieskeyboard_arrow_right
As a global centre of excellence for private wealth structuring, the Cayman Islands has served international clients for decades, providing modern, flexible and robust structures for wealth and estate planning, as well as trust structures for commercial applications.
Read MoreStructured Financekeyboard_arrow_right
Several of Cayman’s law firms specialise in capital markets and structured finance transactions for international clients.
Collateralised Loan Obligations (CLO)keyboard_arrow_right
The Cayman Islands remains the top choice of domicile for US CLO managers when establishing issuer vehicles, due to Cayman’s reputation as a sophisticated, creditor-friendly jurisdiction. CLOs securitise assets, typically leveraged loans, by pooling them together and paying out income and principal repayments from the pool to note holders.
Read MoreCayman Islands Stock Exchange (CXC)keyboard_arrow_right
Established in 1997 and headquartered in George Town, the CSX has facilitated listings with a total market capitalisation surpassing US$800 billion.
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