Cayman continues to attractinternational business
Government Information Service
Financial services growth has been briskthis year, demonstrating the continued strength of the CaymanIslands as a major international financial centre. Year-to-dateincreases in the numbers of registered banks, trust companies,mutual funds and captive insurance companies holding licencesin Cayman range from 4% to 10% over 1999.
At the end of September, there were 57,900 companies registered,which is a 51% increase over 1999. Mr. Jonathan Nicholson, ManagingDirector of Merrill Lynch Bank & Trust Co (Cayman) Ltd, notedthat they have incorporated 1,866 companies so far this year,more than double last year's figure.
Up to the end of September, there were 17 new banks registered,bringing the total to 465 and eight new trust companies, takingthe total to 114;. There have also been 246 new mutual funds,for a total of 2621; and 17 new insurance companies, bringingthe total to 544.
"I believe these figures demonstrate the confidence in theCayman Islands as a jurisdiction of choice for quality business,"said Company Financial Secretary, Mr. George McCarthy. "TheCayman Islands has continually amended and strengthened its regulatoryregime to keep pace with international standards. We encouragequality businesses to operate here, and are pleased to see thattype of business continuing to increase," he added.
This summer, the Cayman Islands introduced legislation to expandThe Cayman Islands Monetary Authority 's (CIMA) ability to assistoverseas regulatory authorities. Legislation expanding the agency'soversight role to include building societies, credit unions andmoney- transmitters was also passed this year. In addition, legislativeaction was taken to make key anti-money laundering provisionson client identification, internal reporting and record-keeping,which existed previously within the industry 'Code of Practice'issued by the government, legal requirements.
The banking community has reacted positively to the legislationCayman has introduced to strengthen regulation and internationalco-operation, according to Mr. Eric Crutchley, President of theBankers Association.
In recognising this response, CIMA Managing Director, Mr. JohnBourbon, said:"This past year we have worked with organizationsincluding the FATF to ensure international compliance, and arepleased to note that the industry is taking a supportive and responsibleapproach. At the end of the day, it is understood that a soundregulatory environment is good for business - and the growth wehave experienced bears this out."
Another significant growth area is The Cayman Islands Stock Exchange(CSX), which is one of the fastest-growing offshore exchangesin the world. Current listings are already 84% above last year'sfigure, having grown from 210 at the end of 1999 to 386 this month.
The CSX, which gained "approved organisation" statusfrom the London Stock Exchange last July, is applying for recognitionfrom a number of other international regulatory bodies. And, followingthe successful opening of the exchange to derivative warrantslast March, the CSX is now getting ready to expand its issueswith the listing of Eurobonds. It is expected that the rules governingsuch listings will be brought into effect later this year. Accordingto Ms Valia Theodoraki, CEO of the CSX, the exchange's Europeanclients are already expressing a good deal of interest.
Growth has also been posted by The Cayman Islands Shipping Registry,a Category One British registry and the world's leading offshoreluxury yacht registry. The Registry has registered 175 new vesselssince the beginning of the year, a growth of 14% from 1999. Amajor function of the Registry is maritime administration andthe regulation of ships on the register.
In February this year, the registry became the first governmentdepartment in the Cayman Islands to meet the ISO 9000 qualitystandard. This is a globally recognised seal applicable to anyarea of endeavour both in the manufacturing and service industries.Cayman's is one of only three British shipping registries, includingthe UK itself, to have acquired that accreditation.
Emphasis has been placed upon streamlining and updating the merchantshipping laws. The goal is to ensure that local laws keep up withinternational commercial developments, so that shipping registryservices complement the other financial services sought by shipowners. "We want to provide all of the services our investorsrequire in a major international financial centre," saidMr. Gibbs. "Each ship on the Cayman register has a physicalrepresentative who is required to practice due diligence. We lookfor quality owners who are going to operate quality ships."