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Muted Year For Cayman Financial Services

Monday, December 10, 2012

The Cayman Islands' economy grew at a slower pace than expected during the first six months of 2012, by 1.2% of gross domestic product, tracking the rate of growth seen during 2011, following a mixed year for the financial services industry.

According to figures released by the Cayman Islands Statistics Office, the number of banks and trusts registered in the jurisdiction has declined in the 12 month period to the end of June 2012. The number of Class 'A' bank & trust licenses fell by one, to 15, while the number of Class 'B' licenses fell by 14, to 220 with the sector shrinking by 6% in size. Banking sector liquidity declined by 2.5% as foreign currency deposits fell by 5.6%, predominantly due to a fall in US dollar-denominated deposits by 6.3%.

The Cayman insurance sector saw nominal growth in the number of insurance licenses during the same period, by four (0.5%), to 758. However, the number of 'Class A' insurers declined by two to settle at 29, while Class ‘B’ (captive) licences grew by six year-on-year.

The number of mutual funds registered in the Caymans grew markedly by 15.5%, to 10,871. However, this was as a result of the inclusion of Master Funds in the statistics, following the enactment of the Mutual Funds (Administrative) Law (2011) since last year. The size of the remainder of the mutual funds industry (registered, administered, licensed) declined by 2.9%.

The twelve month period under review has been positive for the Cayman Islands Stock Exchange, which saw a 5.1% increase in the number of listed companies in the year to the end of June 2012, and growth of 36.5% in Eurobonds listings from 85 in the same period.

New company registrations declined by 10% over the period, to total 4,794, while foreign employment levels expanded by 1.2% to 20,158. This increase in the issuance of work permits is a substantial improvement on the 7.5% decline for the same period a year ago.

The government has revised its full-year target to 1.4% of GDP from 1.8%, taking into account stagnant growth of just 0.2% of GDP in the financial services industry.

Commenting on the statistics, Cayman Premier and Minister for Finance, Mr McKeeva Bush stated: “The economy continued to post moderate growth amidst lackluster demand for financial services and the government’s commitment to responsible fiscal governance. Although, these are challenging times, the 2012/2013 Budget is focused on supporting wide-ranging stimulus measures to give all businesses the best chance of succeeding.”

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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