Attractiveness of the Cayman Islands as an International Financial Centre

1. The Cayman Islands
Stability, Quality, Integrity
Presented by Chief Officer, Dr Dax Basdeo
Ministry of Finance (Financial Services)
China Offshore Summit, Shanghai, China
27th October 2011

2. Location and Proximity

3. Cayman Islands at a Glance
Status British Overseas Territory
Capital George Town, Grand Cayman
Population 55,672 (2009)
Currency Cayman Islands Dollar, fixed to USD
(KYD$1=US$1.20)
Legislation Based on UK Common Law

4. Government at a Glance
Head of State
HRH Queen Elizabeth II
HRH Representative
HE the Governor,
Mr Duncan Taylor, CVO
Elected Leader
Premier, the Hon. W McKeeva Bush, OBE JP

5. Form of Government
• Executive: The Governor presides over Cabinet,
whose advice must be taken except in matters of
defence, external affairs, internal security, the police
and the civil service

6. Form of Government
• Legislative: 15 elected members representing the
Islands' six districts; Cabinet members and the
Premier are elected by the 15 members
• Judicial: Three resident judges, three magistrates
and more than 140 Justices of the Peace, some of
whom serve as lay magistrates

7. Judicial:
Financial Services Division
• The aim of the Financial Services Division (FSD) is to more
efficiently handle high-profile, complex and document-
heavy commercial disputes arising out of the financial
services industry in the Cayman Islands

8. Judicial:
Financial Services Division
• The FSD operates out of a suite of modernised
courtrooms, judges' chambers and party conference
rooms
• Up-to-date technology enables the use of Livenote (or
similar software systems) and video conferencing facilities

9. Economy at a Glance
Nominal GDP US$3.102 billion
GDP per Capita US$56,488 (2009)
Major Industries Financial Services, Tourism
Taxation Tax neutral; consumption-based
duty system

10. Leading Financial Services Sector
• Stable investment environment
• Aa3 credit rating by Moody’s
• 2009 Bond issue was 4-times over-subscribed
• Strong infrastructure and support services
• Commitment to integrity
• OECD White-listed jurisdiction
• 27 TIEAs agreements signed (including China)

11. Financial Services Sectors
Funds
• There are more than 8,000 registered funds and
Cayman maintains a leading global position in the
hedge fund market
• Broad range of structures available to operate
funds in an environment that is stabilised by the
clarity of the Mutual Funds Law
• Market access, flexible fund structures, positive
investor perception and a tax-neutral environment
contribute to Cayman’s competitive edge

12. Financial Services Sectors
Companies and Partnerships
• Currentregistrations now reaching more than
85,000 companies
• Access to Registry data is limited, except where
assistance under one of Cayman’s many
international cooperation channels is required
• Registration
of names in a foreign script is
permitted as well as having dual names on a
certificate
• Cayman based companies can merge with
foreign companies that are not registered locally

13. Financial Services Sectors
Banking & Trusts
• Just under 250 banks licensed under the Banks
and Trust Companies Law (2007 Revision),
including branches of 40 of the world’s 50 largest
banks
• Regulatory oversight of the banking industry is
conducted within the Basel Core Principles
• International assets booked through banks in the
Cayman Islands stood at US$1.762 trillion (as at 31
December 2010)

14. Financial Services Sectors
Vessel Registration
• Category 1 British Registry, the Cayman Islands Registry is
qualified to register vessels of all sizes and classes, from
yachts to supertankers
• Cayman has earned "white list" categorization by the
European Port State Control system and by the US Coast
Guard

15. Financial Services Sectors
Aircraft Registration
• The Cayman Islands Aircraft Registry is the registry of
choice for many owners and management companies
with corporate aircraft ranging from Cessna Citation,
Gulfstream, Embraer, Airbus and Boeing Business Jets

16. Financial Services Sectors
Insurance
• 725 captive insurance companies licensed in the
Cayman Islands, the predominant portion is
healthcare captives
• A popular product offering is the segregated
portfolio company structure, which caters to small-
to-medium sized insurance companies looking to
establish a captive, but who are unable to meet the
specified capital requirements individually

17. Cayman Islands Stock Exchange
• First offshore stock exchange to be granted
‘approved organisation status’ by the London Stock
Exchange (1999)
• First (and still only) offshore exchange to become a
member of the Intermarket Surveillance Group (2001)
• Affiliate member of the International Organisation of
Securities Commissions; designated by the UK
Inland Revenue as a ‘recognised stock exchange’
• More than 3,000 issues approved for listing (mainly
mutual funds and debt listings)

18. Accolades
• Cayman Islands recognised as The Banker’s
“Leader of Specialist International Financial
Centres” for 2 consecutive years (2010)
• International Monetary Fund (2009) report:
“Cayman’s legal framework is comprehensive, the
money laundering offense is in compliance with the
requirements of the UN Conventions”
• US Government Accountability Office and
Department of Justice acknowledged Cayman as
on of their best partners, due to excellent record of
cooperation (2008)

19. Contact Information
Department of Commerce and Investment
PO Box 10087
Grand Cayman KY1-1001
Cayman Islands
+1 (345) 945-0943
Financial Services Secretariat
www.caymanfinance.gov.ky
+1 (345) 244-2278

20. The Cayman Islands
Stability, Quality, Integrity
Presented by Chief Officer, Dr Dax Basdeo
Ministry of Finance (Financial Services)
China Offshore Summit, Shanghai, China
27th October 2011