Attracted by the jurisdiction’s light tax and regulatory touch, the Cayman Islands authorities are registering almost 35 new funds per week, according to Gary Linford, head of the Investment and Securities Division of the Cayman Islands Monetary Authority.
Speaking at a fund industry seminar in Jamaica last month, Mr Linford noted that the Cayman Islands have become “the domicile of choice” for eight out of ten hedge funds around the globe.
“Approximately 6,500 funds based out of the Cayman Islands are considered hedge funds,” Mr Linford observed.
“In 2004, nearly 1,400 new funds were set up in the Cayman Islands. In 2003, we registered 10 new funds per week, then 27 new funds per week in 2004 and now we up to almost 35 funds per week,” he added.
Mr Linford went on to explain that hedge funds and mutual funds are attracted to the Cayman Islands largely because its tax, regulatory and legal framework is so appealing to the fund industry.
“We have no regulatory restrictions on investment policies or strategies or the choice of service providers. We offer speed of formation. We are tax neutral with no direct corporation tax. We have a recognised and respected legal system derived from English common law. It works and everyone knows it,” he observed.
Source: OCRA Worldwide
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