Business
Miller calls for an end to LCCLs regime
(CNS Business): With changes in local economic conditions, the member for North Side is calling on the minister with responsibility to review the regime surrounding the Local Company Control Licence, where 100% foreign-owned companies are now allowed to compete with local businesses, making a difficult environment even tougher for Caymanian entrepreneurs. Ezzard Miller has raised concerns that companies are abusing the system and in a short statement in the Legislative Assembly he said he had evidence that a recent grant by the Trade and Business Licensing Board of an LCCL to a company called KN Network Services (Cayman Ltd) in the telecommunications business could prove detrimental to local companies already covering that market. Read more on CNS Business
Future development will depend on market reaction
(CNS Business): How the real estate and property development markets react and adapt to the new conservation law when it is implemented will dictate the future of development in the Cayman Islands, not the bill itself, local lawyers have said. In a statement released on Wednesday morning, as legislators began debating the bill in the parliament, the Cayman Bar Association (CBA) issued a report on the law which pointed out the need for the legislation as a result of government’s legal obligations under the constitution. In their review of the law, the CBA said it did not threaten property rights and the council was not all powerful. Like any other legislation, it is not perfect, they said, but the legislative process of refinement and revision will apply equally in the case of this bill, as any other. Read more on CNS Business
New regulator for auditors appointed
(CNS Business): The body responsible for overseeing inspections of Cayman-based firms that audit market-traded companies has appointed its first managing director. Donald Cockburn will manage the daily activities of the Auditors Oversight Authority (AOA) and facilitate discussions with his foreign counterparts in order to have Cayman-based auditors assessed and confirmed as having equivalent quality assurance systems to those of other countries. This oversight body lines up with the requirements under the Alternative Investment Fund Managers Directive (AIFMD) that came into effect in July, and gaining recognition from EU member states will be very important to the offshore sector. Read more on CNS Business
ERA starts-over on new power bid process
(CNS Business): Following the allegations of corruption surrounding the selection of DECCO to generate an extra 36 megawatts of power in Grand Cayman, the Electricity Regulatory Authority is re-tendering the project. It is now seeking statements of qualifications from potential bidders to participate in the new competitive solicitation to build, own and operate the new generating capacity by 2016. On 15 July the ERA confirmed that it had cancelled the previous solicitation process due to "unavoidable and unforeseen delays". The problems on the previous selection were triggered when the ERA’s former MD, Joey Ebanks, was sacked, arrested for theft and other offences and charged, but then began making allegations of corruption surrounding the process. Read more on CNS Business
Level playing field sought on global finance initiatives
(CNS Business): The industry association representing Cayman’s financial sector has warned that the jurisdiction cannot be expected to continuing leading on all initiatives relating to transparency and international regulation if there is not a level playing field. Cayman Finance welcomed the recent news from the OECD rating the Cayman Islands as largely compliant with Financial Action Task Force (FATF) recommendations. It encouraged government to continue striving towards compliance with world standards but warned that these standards had to be accepted and implemented by all players in the global financial market. Pointing to the more controversial issue of a public register of beneficial owners for offshore companies, Cayman Finance said such a move could have significant consequences. Read more on CNSBusiness
Rotary Foundation donates to literacy programme
(CNS): A non-profit organisation in the Cayman Islands dedicated to improving the reading skills of both adults and children has received a US $5,000 grant from the Rotary Foundation. LIFE (Literacy Is For Everyone) provides reading programmes in the primary schools for students who need help with literacy skills, as well as a new adult volunteer reading partner, CALS (Computer Assisted Literacy Solution). One of the programmes supported by LIFE is an intervention called LLI (Leveled Literacy Solution), which is provided to government primary schools. The donation from Rotary will be used to pay for more LLI interventions, said LIFE Chairman Woody Foster (far right).
“LIFE’s business is literacy in the Cayman Islands. It was established two years ago and it is starting to make a difference in the community,” Foster said after receiving the cheque at last Wednesday’s weekly Rotary Sunrise meeting. He noted that LIFE was supported by many volunteers “but some things do not come for free”.
As Rotarian Hendrik van Genderen handed over the cheque, he pointed to the worldwide reach of Rotary. This donation comes from the Rotary Foundation through district 7020, of which the Cayman Islands is part. The district reviewed the application, van Genderen said, and agreed to this grant, which is an example of Rotary’s commitment to literacy and its confidence that LIFE will use the funds wisely.
The Rotary Foundation,the global charitable arm of Rotary, raises its funds from Rotarians and supporters of Rotary. Funds are disbursed directly by the Foundation or via the Rotary district.
Because Rotarians involved are volunteers, administrative overheads are minimal and funds made available by the Foundation go a long way. Grants are effective as applications go through a highly competitive application process and Rotarians in the country which receives the grant ensure that funds are well spent.
LIFE is an independent charitable organization dedicated to promoting the significance of literacy, stimulating new literacy initiatives and improving literacy standards of all school age children and adults in the Cayman Islands through advocacy, public awareness, and partnership with governmental and other organisations. Working with volunteers and specialists, LIFE provides necessary resources to teachers and parents in order to facilitate learning in selected children and adults.
To learn more visit LIFE’s website.
LIME completes 4G rollout across Cayman
(CNS Business): LIME became the first local telecommunications firm to complete its rollout of the superfast 4G LTE mobile data service across all three Cayman Islands on Friday. The new technology will offer customers speeds of over 100Mb/s which is equivalent to having fibre optic cable capabilities through a mobile device anywhere on the island. Described by LIME as one of the fastest LTE rollouts anywhere in the world, the firm said that this latest generation of mobile technology designed to supercharge data connected mobile devices would eliminate buffering. 4G LTE delivers a massive step change in functionality and provides a new battleground for mobile operators as they promise greater functionality and connectivity on the move.
Read more and comment on CNS Business
Cayman government signs anticipated US FATCA
(CNS Business): Cayman became the first overseas territory to sign up for automatic exchange of tax information with the United States on Friday. Building on what local officials described as “more than a decade of cooperation in tax matters”, Cayman has signed the US FATCA. It also signed a new tax information exchange agreement (TIEA) with the US that replaces the original TIEA signed in 2001. The new TIEA stipulates the legal channels through which information will be automatically exchanged. CIG has signed a FATCA Model 1 intergovernmental agreement which will see financial institutions in Cayman report information on accounts and entities that are substantially owned by US citizens to the local government, which will then relay the information to the IRS.
Archbold leaves ICTA but CIG silent on reasons
(CNS Business): Dave Archbold, the director of the Information Communications Technology Authority, left the regulator on Tuesday and Glen Daykin has been appointed Acting Managing Director until the official recruitment process to replace the old boss is complete. The ICTA was embroiled in a scandal during Finance Committee last month when it was revealed that the director had overseen the appointment of two overseas staff without following the proper recruitment process, possibly overlooking local applicants. The board was instructed to review what had happened and report back to the Legislative Assembly but government officials have remained silent on whether or not Archbold’s departure was forced. Read more on CNS Business
CIG consulting on beneficial ownership disclosure
(CNS Business): Although the Cayman authorities already collect elements of beneficial ownership regarding offshore companies, they are now under pressure to collect more and make that information public. As the international regulatory regime moves towards full automatic exchange of information and transparency regarding offshore commercial activity, the CIG has opened discussions about how it should do that and whether Cayman should establish a central registry with full public access to meet the latest demands from the UK to lift the lid on what the world still regards as the secrecy surrounding commercial entities using offshore companies and trusts for tax avoidance and evasion. Read more on CNS Business