Ireland is not the Cayman Islands

DUBLIN, Ireland: Irish Times, June 30, 2009 – Questioned about legislation that could impact on US businesses operating in Ireland, Congressman Neal said those who believed that “the shutters are coming in the US are wrong”.

Ireland has a transparent corporate tax regime and is not “the Bahamas, or the Cayman Islands”, said Mr Neal, who sits on the House committee that is currently examining US business tax law.


Winding up orders sought in the Cayman Islands

HAMILTON, Bermuda: Royal Gazette, June 30, 2009 – Argus Group Holdings Ltd, the Bank of Bermuda, Kingate Management Ltd and Fairfield Greenwich all had direct or indirect investments in funds run by Madoff, but each one was decidedly guarded about commenting on the situation after learning the news that the disgraced Wall Street trader had received the maximum term for his crime.
Argus announced it was taking legal action to try to force the liquidation of two investment funds in a bid to recover some of its life insurance policyholders’ assets that were exposed to Madoff.

The company filed a petition in a Cayman Islands court seeking orders to wind up two Rye Select funds operated by a subsidiary of fund management giant Tremont Capital Management after trading in the funds was suspended following Madoff’s arrest and Argus International Life Bermuda Ltd. wrote down the value to zero.


Funds tend to be domiciled in the Cayman Islands

LONDON, England: The Lawyer, June 30, 2009 – The concept of regulating hedge fund managers is not new. The FSA has regulated London-based managers for many years, unlike in the US, where many managers remain outside the scope of supervision by the Securities and Exchange Commission (SEC) and other such bodies. The funds (unlike their managers) tend to be domiciled in tax havens such as the Cayman Islands. The Commission’s directive will continue with the process of regulating funds through managers. So far, so good.

The problem is with some of the detail. Top of the list of unpopular proposals is the requirement that depositaries should effectively be strictly liable to investors for anything that goes wrong. This puts a huge burden on depositaries. Hedge funds can only be marketed to sophisticated and high-net-worth investors and institutions.

They are not a retail product for Joe Average.