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Cayman Funds 2016

From the editor Facing the external influences CAYMAN FUNDS | 2016 3 Cayman Funds Cayman Funds is published by Newton Media Limited. Kingfisher House 21-23 Elmfield Road BR1 1LT United Kingdom Email: info@newtonmedia.co.uk Website www.caymanfundsmagazine.com Director Nicholas Lipinski Publisher Martin Sellar Telephone: +44 203 301 8207 Email: msellar@newtonmedia.co.uk Managing Editor Wyn Jenkins Telephone: +44 203 301 8214 Email: wjenkins@newtonmedia.co.uk Sub-editor Ros Bromwich Marketing and Subscriptions Manager James Lynn Telephone: +44 203 301 8208 Email: jlynn@newtonmedia.co.uk Production and design Fisherman Creative ©Newton Media Limited 2016. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electrical, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. The views expressed in Cayman Funds are not necessarily those shared by the publisher, Newton Media Limited. Wishing to reflect the true nature of the market, the editor has included articles from a number of sources, and the views expressed are those of the individual contributors. No responsibility or liability is accepted by Newton Media Limited for any loss to any person, legal or physical, as a result of any statement, fact or figure contained in Cayman Funds. This publication is not a substitute for advice on a specific transaction. The publication of advertisements does not represent endorsement by the publisher. Cayman Funds - ISSN 1754-6060 Cover image: IM_photo / Shutterstock.com Working from the Cayman Islands, it can be easy to become somewhat inward-looking. Such is the unique relationship and proximity between government, the regulator and the private sector on Grand Cayman, it can be easy to become embroiled in the politics and delicate balance of power that determine the strategy, regulatory regime and, ultimately, the success of the hedge funds sector on the jurisdiction. For the most part, this works well. The importance of the sector to the local economy is such that government and the regulator need to listen to the private sector—and they do, while weighing up and managing the external pressures they are exposed to from the rest of the world. But these external factors can easily be forgotten. All the collaboration and working parties taking place on Cayman make little difference to the reality of what are very powerful forces influencing the industry externally. Worldwide economic forces ultimately determine the health and viability of the hedge funds sector globally and thus the sector’s vibrancy on Cayman. The industry is still recovering in many ways from the 2008 economic downturn and subsequent financial crisis. The worry among many is that such a global meltdown could be repeated in the near term. There is nothing Cayman can do about this. Even with the world’s most cutting-edge and engaged regulatory regime and all the talent in the world, all ships, including those in Cayman, float on the same tide when it comes to the health of the global economy. Arguably even more dangerous for the Cayman Islands is the worrying way in which negative rhetoric relating to the jurisdiction tends to be propagated, especially in the US and UK, usually in the run-up to an election. While the politicians are misinformed and the majority of voters who might believe their pomposity are irrelevant to the Cayman Islands, there are potential dangers in this type of misinformation being peddled. In an ever more transparent and interconnected world, reputation is increasingly important to companies—and the same should apply to the Cayman Islands. While controlling what politicians may say when they’re seeking votes is clearly beyond the remit of even the most seasoned communications executive, that does not mean Cayman should not respond and work proactively to propel an accurate and informed picture of what the jurisdiction represents to those who matter. People are interested in Cayman for many reasons. They will attend, listen and engage, should Cayman reach out in a friendly, transparent and helpful manner. Whose role should this be? Cayman Finance seems to be redefining itself with this in mind yet the government will never be able to avoid this responsibility completely. The key point is that any action must be undertaken in the wider world—external to the Cayman Islands, so that those in cities such as London, New York, and Washington, DC get the message loud and clear. It will never be possible to control the very powerful external influences on the funds industry in Cayman but that should not be an excuse for not trying, adjusting and shaping those influences where it can. Wyn Jenkins, managing editor


Cayman Funds 2016
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