CAYMAN FUNDS | 2017
Mark Cook: As the rate of new launches slows perhaps people
are looking to do new things. The number of PE funds is growing,
for example, and we’re starting to field more enquiries for advisory
boards for onshore feeder funds.
Tammy Jennissen: I’m an optimist, and Cayman is able to do things
other places cannot. Given the infrastructure and knowledge we
have here alongside the regulations definitely offers a good model.
CIMA and the government do great work in terms of making sure that
we’ve got the right regulations in place, without being too overbearing
in regulatory terms that would stifle growth opportunities.
Leanne Golding: There has been a sustained status quo for several
years now with few changes, or new fees. You know what you’re
getting when you come to Cayman and that stability is a tremendous
benefit to our jurisdiction.
Jacob: That stability Leanne is talking about is one of the hidden
gems we don’t talk about enough. Also, the jurisdiction has a very
firm and efficient court system that allows a sensible expectation as
to an outcome that’s reasonable for investors.
From formation to wind-down, there are precedents that can be
relied on and we have a competent judiciary.
That represents a really good insurance policy that not many
jurisdictions have. There are other jurisdictions that try to be financial
services hubs where the court system turns people away.
The other big issue is the use of technology. We need to adapt and
embrace this because it can offer us the bandwidth to expand.
Finally, the very fact that we are sitting here working together as
professionals from different parts of the industry says a lot about
how special Cayman is—that cannot easily be replicated.
André Ebanks: Your point about the judicial system is a good one
and something the government tries to highlight in cross-border
regulatory discussions. The court has made a division specifically
dedicated to financial services. I can’t think of any of our competitors
that have done that. We also have very experienced people in the
judiciary—they’re ex-practitioners, they’ve seen it all. It’s a huge plus.
Scott: We’re currently working on a model and launching a working
group within Cayman Finance focused on physical presence,
specifically looking at categories that we think are very synergistic
with the business model we have in Cayman: family offices,
reinsurance companies, investment managers, fund administration,
as well as aspects of fintech intellectual property development that
will continue to drive leadership in the industry globally and how we
position ourselves.
When we look at our market for alternative investments, probably 50
percent of our business comes through the US, 20 percent through
Europe, 20 through Asia and 10 percent elsewhere. When we look at
Europe itself, probably 80 percent of that 20 percent comes through
the UK, so when we look at Europe outside of the UK, we’re probably
only talking about 4 percent of our business.
We want to continue to grow that business but we also have to make
sure it’s proportionate with other opportunities we have around the
world and all the other significant growth that we’re seeing in areas
like Asia and elsewhere, so we want to make sure that we are
pouring our resources in the areas that work very synergistically and
will continue to grow our business model.
Monette Windsor: Something this jurisdiction has that’s quite
unique is it’s February, when there is snow in many parts of the
world, and we’re sitting here in beautiful sunshine and 82 degrees.
The quality of life here is very high. When businesses talk about
retaining and attracting talent, Cayman has the advantage of all of the
wonderful things about living on the Islands as well as the financial
attractiveness of doing business here. Cayman is well poised to
attract and retain new business and talent.
What are the challenges and
headwinds facing the industry?
Ebanks: There is a lot on our plate right now. We recently had our peer
review onsite visit by the OCED Global Forum assessment team in
respect of the second round of Exchange of Information on Request,
which seemed to go well. Then we have the upcoming Caribbean
Financial Action Task Force (CFATF) assessment scheduled for the
end of this year for which legislative amendments are being made
in preparation therefor. Then we have the IMF review, which we
believe will take place some time in 2017.
Other mini assessments are also going on, such as the UK is assessing
our beneficial ownership regime. We’re already collecting beneficial
ownership information, but are putting in place a searchable register
for the enhanced exchange of beneficial ownership information with
UK law enforcement authorities when in pursuit of bad actors. This
is a material enhancement and we have to ensure we get the related
legislation right.
Then there is the EU Alternative Investment Fund Managers Directive
(AIFMD) which, even though it’s really only looking at access to EU
investors, it is an assessment that looks at our overall regime.
“You know what you’re
getting when you come to
Cayman and that stability
is a tremendous benefit.”
Leanne Golding