Financial services sector still growing despite Ivan

Timothy Ridley

Monday,  January 31, 2005

Mutual funds are closing in on the 6,000 mark with 25 percent growth, while new captives grew seven percent to 693 in 2004. Banking and fiduciary services held their own with total year-end footings of licensed banks projected to be over US$ trillion. This momentum confirms the financial services sector is hot, in spite of Hurricane Ivan.

“We are very encouraged to see the impressive growth of these two sectors of international business in 2004, despite the unforeseen burdens imposed by Hurricane Ivan,” said Timothy Ridley, Chairman of the Cayman Islands Monetary Authority (CIMA). “Our service providers and their client base remain committed to the jurisdiction as evidenced by the strong licensing and registration activity in the final quarter.” 

“The Authority will continue to liaise very closely with the local banking and insurance industries as they work through the difficulties of the post-Ivan recovery of the Islands,” Mr Ridley added.

CIMA’s board met during the week of 17 January, where it reviewed the performance of the financials services sector, which was driven by the funds and captives. 

The Authority’s goals for 2005 include improving its risk-based approach to supervision and where appropriate, enhancing its regulations. The Authority and the private sector will coordinate a full evaluation of the Insurance Law and Regulations’ fees for trust companies and company managers, and mitigating Cayman’s risks from abuse of unregulated Cayman Islands entities. 

Planned workshops will increase industry awareness for the Basel II measures and the implications for Cayman licensees. There will be a comprehensive review of the domestic insurance industry starting the second half of 2005.

The International Monetary Fund’s (IMF) assessment on Cayman should be published in February. Additionally, the Authority will pursue membership in the International Organization of Securities Commissions (IOSCO) as well as complete the Memoranda of Understanding with qualified regulators.

   Back...