The Cayman Islands has seen its supremacy as the number one hedge fund jurisdiction rudely shaken. The question is how it will respond to the unprecedented challenges.

Overview The Cayman Islands has seen its supremacy as the number one hedge fund jurisdiction rudely shaken. The question is now how it will respond to the unprecedented challenges and if it can remain competitive.

Interview with McKeeva Bush The Premier of Cayman is a man on a mission. He has demonstrated the government’s renewed commitment to boosting the financial services industry and in particular hedge funds.  A central plank of the government’s policy is to act as a facilitator and to help the financial services sector grow.

Legal services The unprecedented events of the past two years have led to profound changes. Law firms in the jurisdiction are confident the tried and tested Cayman vehicles used by hedge funds will continue to be popular and survive the introduction of onshore regulation of the industry.

Directors The provision of directors for hedge funds is turning into a major business. The Cayman Islands leads not only in the number of experts available but also in the multiplicity of models being used.

Fund administration As the number of fund administrators on the ground in Cayman dwindles, many are reassessing their operations in the jurisdiction. At the same time the opening of two new administrators on the island has given the government renewed hope for the future of the industry in Cayman.

Accounting Questions are being raised about how the accounting profession will respond to the introduction of a new accounting rule, FIN 48, and how it will be applied to asset managers.

What they say about Cayman Service providers, fund administrators and legal firms explain why they think the Cayman Islands remains the leading hedge funds jurisdiction.

Cayman Islands at a glance Key facts, figures and information about the Cayman Islands.

Tax information exchange agreements

Elecronic reporting and CIMA