(CNS): The Cayman Islands is bucking global trends the chair of Cayman Finance said Wednesday, in the wake of news from the country’s regulator that fund formations have increased some 5 percent in the most recent quarter of 2010. CIMA statistics have also revealed that terminations have gone down by more then 40 percent. Total regulated funds in the Cayman Islands are now at 9,623. Chairman, Anthony Travers predicted that trading talent will continue to migrate out of the EU as more restrictive remuneration provisions come into effect. The Cayman Islands Monetary Authority (CIMA) reports that as at 7 October 2010 the yearly month on month average for new registrations increased to 105 per month a 5 % increase over 2009 figures.
Fund terminations for the same period decreased by 40% over the comparative 2009 figures to an average of 45 per month.
The increase to 9,623 is getting close the sector’s all time high of 10200funds in 2008, Travers noted.
“These numbers continue to show the attraction of a transparent jurisdiction which is free of intrusive regulation with respect to investment strategy,” he said. “These statistics are in line with our earlier predictions and I would anticipate terminations will decline further as smaller funds wind down and fund managers make decisions about the high water mark.”
Pointing to the issue currently going on in Europe regarding the debate over fund regulation Travers said, “No doubt Eurocentric managers feel obliged now to form UCITS products but as we see from the recent comments of Peter de Proft, the Director General of the European Fund and Asset Management Association (EFAMA), the regulatory position in Europe is increasingly troubled particularly with respect to custodian liability.”
He said the UCITS product is quite different and unlikely to compete with the returns of the hedge fund proper.
“One material reason is that we predict that trading talent will continue to migrate out of the EU and the institutional investor which Cayman serves is well aware of that trend. Interestingly on the subject of migration, and given all the commentary from experts about redomiciliation, according to CIMA figures there have been only four – two to Malta, two to Luxembourg and none to Dublin. We remain assured that on the global stage Cayman’s attraction continues to improve,” the Cayman Finance chair added.
But we are still under attack abroad so we can never really savour any success we may have. Channel 4 TV in Britain is airing a programme called "How The Rich Beat The Taxman" on Sunday or Monday. In this programme Cayman is apparently painted with the usual "notorious tax haven" brush and Chris Bryant ( Captain Underpants) comes across as a hero for trying to force us into direct taxation while the Foreign Office is accused of changing its policy immediately the new coalition government took over – a policy change that is said to benefit rich Tories whose businesses are based here.
A nation of people assured of themselves and what they offer, will allow for the scare movies months ago to have been the hot air it was.
Know what’s ironic me think: the same leaders in the Industry created a big pile of scary movies and went booooooohoooooo stooooppp roll over stoooop roll over doooo this and doooo that or we all gooooing somewherrrre else no the caaaayman islandssss is uncompeeeetitive and everybooody will gooo somewherrre else. Govertment of course unassured about who we are starts scrambling and destroying everything in sight (including the lowwwly lil Caymanian) and present the scary monsters with their scary movies lots of big prizes…then they went BOO – the jokes on you guys: we are doing great…everything is fine.
I cannot help but entertain, if their cries did not become self-fulling somewhat, not so much from what they were alluding to, but the realities presented by the global finacial meltdown in the financial world and somehow there is some levelling-off.
Were there challenges – I suppose so, the experts said so, so I had to accept it on some level or at least investigate the truth to it. Were there policies that needed modifying – maybe – though not as totally convinced so. Did some firms leave – ya bet ya. But I believe for far other reasons than the scary movies being played out a few months ago as to why they were leaving.
What am saying is: what a mess. What a shame. I am thankful that the Cayman Islands is still beautiful as a destination for vacationers and vibarant and attractive as a jurisdiction for institutional business…strong, mighty, vibrant and attractive home for Caymanians, residents and trancient guest workers that mean us well. Amidst the hoopla – the truth emerges. Of course many of us knew this already. Tanks for being honest Mr. Travers.
CNS thanks for tapping the vision of positive news on Cayman- it feeds on itself. Its a good vision to catch. Mark my words and watch what happens if you continue: sky is the limit!! And everyone wins.