“As the leading domicile for hedge funds, the Cayman Islands has facilitated hundreds of billions of dollars of investment into OECD-based economies such as the US using offshore hedge funds.”


One of this jurisdiction’s key features, which is relevant to hedge


funds stakeholders internationally, is the plethora of high-quality service providers based in Cayman, in the areas of fund administration, auditors, legal firms, corporate service providers and bankers.


Another factor, itself a major achievement and perhaps deserving


of more mention, is the fact that the Cayman Islands is the only offshore financial services centre which holds a global leadership position simultaneously across four areas: banking, hedge funds, captive insurance and structured finance. This depth of quality in the jurisdiction benefits hedge funds stakeholders, and it is a feature of our jurisdiction that Cayman Finance naturally holds highly.


Playing a positive role in global markets As initiatives are introduced, such as the Alternative Investment


Fund Manager Directive (AIFMD), and others targeted at the funds industry are implemented, the debate on the role of offshore centres such as the Cayman Islands is missing a key argument: the positive contribution of the Cayman Islands financial services industry and the funds sector to the global economy.


As the leading domicile for hedge funds, the Cayman Islands has


facilitated hundreds of billions of dollars of investment into OECD- based economies such as the US using offshore hedge funds. These funds enable investors from countries around the world to participate in a tax-neutral venture for the purpose of investing into major projects in economies such as the US. Contrary to popular opinion, there is effectively no true ‘capital flight’ from OECD economies as a result of offshore centres. In fact, when one follows the path of funds in a typical hedge funds transaction it shows that offshore centres actually facilitate major inward capital flows into OECD-based economies from various global investors.


The economic benefits of the Cayman Islands as an international


financial service centre to the global economy are significant and long- lasting. The ability of a country to secure the necessary investment into major infrastructure such as roads via securitisations, or the availability of insurance coverage to major hospital groups, confer distinct economic advantages.


12 CAYMAN FUNDS | 2012 The ability of offshore centres to preserve and protect wealth is also


an important value-added service to many countries. Jurisdictions such as the Cayman Islands have done their part in meeting the various global international regulatory standards. Even if recognition is still lacking in this area, their direct positive contribution to the global economy is hard to dispute.


Cayman Finance is confident that as this jurisdiction continues in its


efforts to enhance its regulatory framework, it will maintain the very important competitive edge as a service jurisdiction, while continuing to demonstrate the strength, stability and quality that our global clientele seeks. This approach applies not only to our hedge funds industry but is a standard that is evident across the entire Cayman Islands financial services industry.


Richard Coles is chairman of Cayman Finance.


Richard Coles is an experienced lawyer both in England and in the Cayman Islands. He has been the Attorney General for the Cayman Islands, a Member of the Cabinet and Legislative Assembly and a Government Minister, having been appointed to that position on the recommendation of the UK government. He was also the acting Governor of the Cayman Islands. Prior to that appointment he was the


founding partner of a substantial firm of solicitors with offices in England. He has now reverted to private practice in Grand Cayman and is a non-executive director of a number of mutual funds, structured finance vehicles and investment and financial sector companies.regulated entities and the advancement of relationships with government, industry and international regulators and regulatory standard-setters. She represents CIMA and the Cayman Islands extensively overseas.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80