Views about the Cayman Islands from a variety of hedge fund industry service providers based in the jurisdiction.

Richard Finlay, partner, Conyers Dill & Pearman
Finlay believes Cayman is “very fortunate to have a significant number of very talented and experienced independent directors” as well as other funds professionals. He believes the depth of talent exceeds other jurisdictions.

One challenge he sees ahead for the jurisdiction will be on the regulation front but expects Cayman to be able to maintain its credibility.

Like others he thinks the jurisdiction will be able to attract fund managers who are looking to establish a more substantial operation in Cayman.
“Looking forward, Cayman will still be a very attractive jurisdiction for funds and in general for international business,” notes Finlay. He believes the jurisdiction has both physical and human capital advantages to offer.

Ingrid Pierce, partner, Walkers
Pierce believes Cayman will continue to be seen as a robust jurisdiction for hedge funds. She thinks the jurisdiction will continue to cater for institutional investors, rather than retail. While she has not dismissed the possibility of Cayman adopting Ucits-style products, she believes the limitations imposed by regulation as well as the financial cost to investment managers will probably not be an attractive alternative in the long run to Cayman structures.

Although it is too early to say what will happen with EU legislation, she believes Cayman will continue to be an attractive jurisdiction for US-based fund managers as well as those from other nearby regions such as South America.
For Pierce, Cayman needs to continue to develop competitive products that will assure its continuing success.

John Lewis, director, DirectorsPlus
Cayman, says Lewis, is one of the most credible and professional offshore domiciles. While it may need a new approach, it has proved itself to be a robust and resilient jurisdiction.
He believes Cayman’s greatest advantage is its knowledge. He points to the fact that Cayman firms are growing around the world and continue to attract business.

While there are risks attached to onshore regulation and how this could impact Cayman in future, he believes it is more than likely the jurisdiction will be able to turn these developments to its advantage.
With the majority of gross domestic product in Cayman coming from the financial industry, Lewis is confident the government will do all it can to maintain and foster growth.

Paul Scrivener, partner, Solomon Harris
For Scrivener, Cayman is one of the most “sophisticated of jurisdictions”. “Whatever others say, Cayman is the default position” for hedge funds, says Scrivener.
He admits he is “nervous” about the direction the EU is going on regulation although he believes the impact may be diluted, particularly as Cayman is attracting new business from places like Russia, China and the Far East.

“I am confident Cayman will maintain its premier positions and that the key decisions needed to ensure this will be made by the government. One or two years ago before the crisis, there was complacency. Now people recognise this is a very competitive market and need to work hard to maintain and attract business,” concludes Scrivener.

Alan Milgate, director, Harbour Trust Company
Milgate thinks Cayman is in a unique position to push forward and continue with establishing best practice for the industry. He says the jurisdiction is the best forum for informal and formal exchange of ideas and models.

Pre crisis he believes Cayman took its position for granted. But changing regulations and an accelerated evolution of the industry has made Cayman become more competitive.  Although he believes the jurisdiction will continue to be the domicile of choice for the foreseeable future, in order for it to thrive it needs to continue to innovate.  With the growing number of jurisdictions and emerging hedge fund managers throughout the world – particularly in South America and the Far East – Milgate believes Cayman will need to be sensitive to the cultural differences and ensure good corporate governance and best practice is maintained.

Anthony Travers, chairman, Cayman Finance
Travers finds it easy to sing the praises of Cayman. He says the professionals in the jurisdiction “far exceed” expectations, with a high calibre of executives. This is “not typical of an offshore area” he says of the quality of people working there.

He believes Cayman is well placed geographically to attract some fund managers, even those moving out of the UK but thinks the island state is particularly attractive for Middle Eastern and Asian hedge funds mangers. Cayman has the “most extensive industry” of any jurisdiction. “The government is fully on board” when it comes to promoting the financial services sector and he praises the Premier’s fast work on sorting out immigration policy. He says the new rules are “a radical department from the roll-over policy” which he says “was not helpful in terms of developing a substantial fund administration infrastructure” in Cayman.

David Walker, CEO, Caledonian
Cayman continues to have a future, believes Walker. “There is real substance here,” he says. Walker thinks Cayman is right to encourage investment managers to look at establishing operations with real substance in the jurisdictions.

While in the past there have been problems with immigration issues and work permits, he expects the relaxation of controls to be helpful, although he admits Cayman is not a big enough place to cater for a large influx of people.
The future of the jurisdiction, however, will be determined by its ability to attract more substantive business rather than remain a place known just for its registered offices.