Premier Investment Vehicles
The Cayman Islands enacted its Mutual Funds Law in 1993 and subsequently, funds have become a key sector: there are more than 8,000 registered funds and Cayman maintains a leading global position in the hedge fund market. Cayman offers asset managers and fund promoters with ideal market access, developed infrastructure, professional services and a secure regulatory environment.
One of the key advantages of doing international business in Cayman is the depth of expertise in all disciplines relating to global finance, delivered by world-class law, accounting/audit and fund administration firms. The aim is to ensure that client requirements are translated into structures that derive maximum advantage in the jurisdictions of investors and of investments.
Factors contributing to this include the flexibility afforded by the broad range of structures available to operate funds and the clarity of the Mutual Funds Law. The legislative framework allows for sophisticated investment techniques, which may include leveraging portfolios to a substantial extent, making loans of securities on an unlimited basis and investing without restriction in any currency or instrument, among other features.
The Cayman Islands Stock Exchange (CSX) - Profile of a Leader
With the establishment of the CSX in 1997, the funds industry was further enhanced by access to a first-class listing facility for funds in the jurisdiction of domicile. The CSX has continued to grow, with more than 1,000 listing, a large proportion of which are investment funds. Due to a combination of progressive listing rules, professional expertise and quality of service in terms of consistency and turn-around times, the CSX has posted sustained growth since inception.
In addition to funds, the CSX also lists derivative warrants, depository receipts, eurobonds, preferred shares and international equity. The CSX provides a secondary listing facility and an offshore trading venue in the North American time zone for companies listed and traded on another recognised exchange.
Publication of all listed issuers’ price and other information on the CSX’s dedicated Bloomberg facilities, and on the Internet – www.csx.com.ky – ensures transparency for the investor and guarantees visibility for the issuer at all times.
The CSX is a Recognised Stock Exchange under the UK Income and Corporation Taxes Act 1988. As a result, interest earned on securities listed on the CSX can now be paid without deduction of UK tax. The CSX is an affiliate member of IOSCO and the Intermarket Surveillance Group, a group of self-regulatory organisations committed to international cooperation for regulatory purposes. Among its members are all U.S. Exchanges as well as a number of European, Canadian, Asian and Australian Exchanges. In 1999, the CSX was the first offshore stock exchange to become a registered organisation with the London Stock Exchange.