News
UBS Restructuringto bring Long Term Growth United Democratic Party
An impending change and local restructuringof operations of UBS (the Union bank of Switzerland) and otherbanking institutions, may bring increased mutual funds and capitalmarkets business to the Cayman Islands, United Democratic Partyleaders have moved to assure the Caymanian public and the businesscommunity.
The Party notes that although the Bank hasrecently announced an intention to move private banking operationsfrom Cayman to the Bahamas by year-end, it is expected that therewill be growth in its fund administration portfolio, which willremain here.
UBS, in a statement released to the press,said that the business remaining in Cayman has a good future hereand has underscored that the decision to move its private bankingoperations to the Bahamas was not made because of recent fee increasesto the financial sector, announced in the 2002 budget, or changesin the laws of the Cayman Islands.
The move to the Bahamas is part of the Bank'sworldwide strategy to consolidate certain aspects of its operationsto jurisdictions that provide it with a particular competitiveadvantage.
Consequently, UBS has clearly demonstrateda commitment to maintaining a presence in the Cayman Islands byretaining all licences including its Class A bank licences.
Leader of Government Business, the Hon.McKeeva Bush noted that Cayman still enjoys the confidence ofthe international banking community and institutions such as UBS,whose Managing Director-Mutual Funds, Mr. Sean Flynn has describedthe Cayman Islands as "an excellent jurisdiction from botha legal and regulatory perspective for asset management."
Mr. Flynn also confirmed that UBS will maintainthe bigger part of its operations in Cayman and that of the 20Caymanians expected to be affected by the restructuring exercise,13 or 14 are likely to be employed in the funds section.
MLA Lyndon Martin said the Cayman Islands"can be proud of the excellent regulatory framework thatwe have worked hard to establish here, which continues to attractinvestors."
West Bay MLA Cline Glidden Jr. said: "WhileUBS's streamlining will result in a shift in business in one area,we are looking forward to continued growth in their fund administrationbusiness."
MLA Rolston Anglin also noted that althougha number of international banks have been going through internationaland regional restructuring, the Cayman Islands seems to be targetedfor more institutional clients, and the country will clearly remaina leading and competitive financial centre.
Notably, UBS closed its Panama office recently,as part of moves to consolidation in this region.