Why Chose The Cayman Islands For Offshore Funds

Why Chose the Cayman Islands for Offshore Funds
Jan 01, 2019

Notwithstanding the fact the Cayman Islands has been the leading offshore jurisdiction for regulated funds and other investment vehicles, and considered the world’s fifth largest financial center with well over 11,000 regulated funds; both the Government and the local regulator – The Cayman Islands Monetary Authority (CIMA), recognize the importance of the industry to investors, and it’s local economy.

With the forgoing a reality of consciousness, the approach taken by the Government and CIMA is to be proactive, and stay ahead of the curve at all times on the main drivers of the industry. The following answers the question; “Why the Cayman Islands” can be summed up in the following areas:

The regulator – CIMA recognizes the importance of understanding the industry and it’s associated “value drivers”. In recognizing this, key factor, CIMA maintains a close working relationship with the industry, and maintain a flexible approach in addressing important matters relevant to growth, and maintaining a reputable jurisdiction. The Authority’s keen interest in the protection of investors’ interest is well known in the global community.

Government Intervention – The Government, as far back as the 1960’s, has always been responsive to the needs of existing fund managers, and those seeking to use the jurisdiction for this purpose. In recent times, the Government responded to the industry call by implementing the “Cayman Islands LLC”. This is widely believed to provide significant flexibility to fund managers, and in most cases than not, reduce cost.

Over the years, and with successive Governments, no interest has ever been shown to adopt a policy of “direct taxation”. The Cayman Islands does not tax “Capital Gain Income” on investment vehicles, and the same holds true for the transfer of interest between investment funds.  

Services Providers – Finding service providers in the Cayman Islands to support hedge funds and other investment vehicles can be one of the easiest part of doing business in the Cayman Islands. The Islands have successfully maintained some of the most talented individuals and firms in the following areas:

  • Law
  • Accounting and Auditing
  • Fund Administration
  • Trust companies
  • Corporate and Registered Offices

Advanced Fund Administration is a full service firm providing fund administration, legal and corporate services to the investment industry with offices in both the Cayman Islands and the US (New Jersey).

For additional information please contact:

Peter M.O. Young President and COO of AFA
+1 (345) 943-4232(Cayman)/9082734545 (US)

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