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The Cayman Islands is a major international financial center that caters to entrepreneurs, professionals, and high-profile personalities with its wide array of financial services in sectors such as banking, trusts, structured finance, mutual funds, captive insurance, vessel registration, companies and partnerships, and the Cayman Islands Exchange. If you want a place where your assets are safe and expertly managed to your advantage, the Cayman Islands is a sure bet. Here’s a detailed description of financial services in the Cayman Islands:
Banking
Cayman Islands is known worldwide as a top 5 banking center with over $1 trillion in banking investments across over 300 banks in operation. Banking institutions accommodate international clients provided that they present requirements so as to comply with anti-money laundering guidelines.
Trusts
Trust funds are popular in the Cayman Islands as a means of wealth protection and providing financial security to loved ones, especially those who are not savvy when it comes to investment matters. Regulations in Cayman Islands have further established the formation and administration of trusts in the territory. One such example is the Special Trusts Alternative Regime (STAR) Law which allows trusts for various purposes so long as they do not violate the law.
Structured Finance
With its tier of expert law firms specializing in capital markets, the Cayman Islands is one of the leading providers of structured finance transactions through SPVs or Special Purpose Vehicles. SPVs are debt issues made by a corporation in the Cayman Islands which acquire underlying assets from a promoting financial institution. SPVs can generally acquire any asset throwing off an income stream, such as simple capital markets euro paper issues or credit cards & other receivables.
Mutual Funds
After the enactment of the Mutual Funds Law in 1993, Cayman Islands has grown to be the home of over 8,000 mutual fund investments. In terms of number of fund administrators practicing, the Cayman Islands is second only to Luxembourg. The number of administrators, as well as the number of other service providers such as lawyers and accounts, has been the backbone of the industry’s strength. Investments in mutual funds are attractive as 4 types of funds are offered in the islands and since there is sufficient flexibility in fund structures and investment objectives allowed. To maintain compliance to the regulatory frameworks, Cayman Islands ensures that only applicants of sound reputation are allowed to set up or administer funds.
Captive Insurance
The Cayman Islands has a thriving and successful insurance industry with over 700 captive insurance companies regulated by the 2004 Insurance Law. Of these companies, almost 40% is related to healthcare. Cayman Islands has also been the general choice of companies looking at setting up a formal self-insurance program combining maximum profit and actuarial risk coverage.
Vessel Registration
Over 300 commercial ships and 1,300 pleasure vessels are registered with the Maritime Authority of the Cayman Islands, formerly known as the Cayman Islands Shipping Registry. These growing figures are testament to confidence of ship owners in doing business in the islands.
Companies and Partnerships
More than 80,000 companies are registered with Cayman’s Registry of Companies, apart from limited partnerships and exempted trusts which are likewise registered. Companies can be formed for various reasons, including investment, real estate operations, shipping and the like. The absence of minimum capitalization requirements (except for limited duration companies), the expedited registration process as well as the freedom to have only 1 shareholder make company registration a more flexible process. By setting up corporations, businesses are able to take advantage of Cayman Islands’ stable political and economic status, as well as its tax neutrality.
With its excellent array of financial services, the Cayman Islands is indeed the perfect venue to invest and protect your assets. Don’t settle for anything less when it comes to your money and the future of you and your loved ones. Avail of the superior financial services of the Cayman Islands to secure a bright future.
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