Storage, bank fees up

Fee increases on banks, trusts and mutual fund licences in the Cayman Islands will take effect on 1 January, according to regulations approved last month by Cabinet members.

In addition, daily storage fees for items kept in the customs transit shed and at the Queen’s warehouse at Owen Roberts Airport have been increased.

For new banks and trust companies registering in the Cayman Islands, first grant of a class ‘A’ retail banking licence will increase in cost from a $500,000 fee to $600,000. Annual renewals of those fees will go from $400,000 to $600,000 as of 1 January.

Other relatively small fee increases for companies seeking restricted licences to carry on banking business in Cayman, or for subsidiaries of banks that operate here will take effect on that date. Those hikes range between $6,500 and $3,000 extra each year.

Regulation fees paid for the registration of a controlled subsidiary will go from $1,500-$2,000 to $7,000.

Annual licences paid for mutual fund registrations will increase from $2,500 to $3,000 per year as of January.

Warehousing charges for handling and care of goods stored at the airport transit shed are currently a two dollar charge per 100 pounds of items stored. On 1 January, those charges will go to five dollars per 100 pounds of packaged or unpackaged goods. The two/five dollar charge only kicks in for goods held longer than 30 days.

Charges for storage in the Queen’s warehouse will see the exact same increase, from two to five dollars per 100 pounds of goods stored.

The increases to bank, trade and mutual funds licences are expected to raise an additional $6.6 million per year for government.

The charges for package charges are expected to take in an additional $600,000 in the current budget.