Compass Finance

Cryptocurrencies and asset protection trusts in the Cayman Islands

Bitcoin and other cryptocurrencies have led to enormous generation of wealth, which is likely to have a significant impact on the traditional private wealth industry, with new and innovative wealth structures being created.

No global corporate tax reform deal this year

The 137 countries that are trying to reform global rules for corporate taxation to address the challenges presented by the digital economy were not able to reach a deal at virtual meetings last week.

Gold: Cayman’s popular import

When the coronavirus pandemic and related lockdown measures caused the economy to grind to a halt in the second quarter of this year, merchandise imports to Cayman dropped by almost a third. The decline affected all types of goods, except one: gold.

Cayman taken off EU tax blacklist

European Union finance ministers have removed the Cayman Islands and Oman from its list of non-cooperative jurisdictions in tax matters, “after having passed the necessary reforms to improve their tax policy framework”, the EU Council said Tuesday.

Cayman expected to be removed from tax blacklist

European Union economics and finance ministers will decide Tuesday on a revised list of non-cooperative jurisdictions for tax purposes, which is expected to remove the Cayman Islands.

Cayman Islands Grand Court facilitates direct court-to-court communications

“Judicial international co-operation is a well-established tradition in Cayman Islands’ jurisprudence…” wrote Chief Justice Anthony...

Virtual asset discovery, valuation and safeguarding – the effect on liquidators

Virtual assets have experienced an explosion in growth, in part due to the meteoric rise of initial coin offerings (ICOs) in 2017. While only small number have succeeded to become longer term prospects, many are trickling down onto the client books of liquidators.

New company registrations slow down

New company registrations in the Cayman Islands were down 17% in the first eight months of 2020 compared to the same period last year, and 36.9% lower than between January and August 2018.

Cayman Islands tumbles in top financial centres list

The Cayman Islands has fallen 31 places and is now only ranked 78th in the Global Financial Centres Index.

Tax group: OECD minimum tax could impede economy recovery

OECD plans for a global minimum tax could seriously halt the economic recovery following the COVID-19 pandemic, according to the National Taxpayers Union.

Rebuilding after ‘software ate the world’

Well-known Silicon Valley entrepreneur and venture-capital investor Marc Andreessen’s 2011 note claiming that “software is...

OECD: Full potential of sustainable finance yet to be unlocked

Sustainable finance has seen tremendous growth in recent years, but the field is still beset by data problems that need to be overcome for these investments to take full effect.

UN panel: Tax abuse, corruption plague global finance

A United Nations panel on financial accountability, transparency and integrity is urging governments to do more to tackle tax abuse and corruption in global finance, following the publication of an interim report.

CIMA places Premier Assurance Group in controllership

The controllers assumed control of the affairs of the company on 14 Sept. and have the power to terminate the insurance business, the financial regulator said.

SEC fines fund administrator

The US Securities and Exchange Commission has ordered Northern Trust Hedge Fund Services LLC and its Cayman fund administration subsidiary Northern Trust Global Fund Services Cayman Limited to pay US$167,629 for regulatory breaches in their role as the administrators for the LR Global Frontier master and feeder funds from January 2016 to August 2017.

CLO listings on Cayman Stock Exchange only marginally down

Listings of collateralised loan obligations - securities that are backed by a pool of debt, such as corporate loans - on the Cayman Islands Stock Exchange (CSX) were only marginally down in the first half of 2020 compared to the previous year.

Cayman resident arrested in US for stock fraud

US authorities arrested Cayman resident Andrew McAlpine last Friday in Orlando, Florida, for alleged stock fraud, after he entered the United States on a privately chartered plane from Grand Cayman.

Cayman companies file second-most blockchain patents in US

Cayman-registered companies have filed the second largest number of blockchain patents in the United States, trailing only US firms, according to research by KISSPatent.

Industry survey: Hedge funds remain resilient amid COVID-19

Research by KPMG and the Alternative Asset Management Association finds that hedge funds have adapted well to the effects of the coronavirus pandemic with many firms continuing to hire and using technology to deal with the new business environment. Based on a survey of 144 hedge fund managers globally with an estimated $840 billion in assets under management, the report found that they have continued to make strategic hires, as the new decentralised nature of working creates opportunities for managers to reach outside of their normal captive locations in the search for new talent.

Hedge funds extend five-month surge

Hedge funds continued their surge in August, supported by the robust performance of global equity markets helped by encouraging news about the development of a COVID-19 vaccine and improving macroeconomic data.

Management shake-up at Greenlight Re

Cayman-based reinsurer Greenlight Re announced several leadership changes following the resignation of chief underwriting officer Brendan Barry on 4 Sept. and chief financial officer Tim Courtis on 9 Sept.

Report reveals how criminals launder money after a cyber heist

A new report explores how cyber criminals, who steal from banks, can cash out and launder the money so that it cannot be traced.
Cayman’s courts have ramped up their emergency contingency plan to counter COVID-19 issues.

Liquidators sue Platinum auditors BDO

The liquidators of a Cayman-based offshore feeder fund and a related intermediary pass-through fund that invested into the now-defunct Platinum Partners Value Arbitrage Fund LP (PPVA) are suing the fund’s auditors BDO in Cayman.

New bill aims to reform foreclosures

Two years after the Law Reform Commission sought the views of stakeholders and the public on whether foreclosure practices in Cayman needed to be reformed, it has now submitted a bill for public review.
Pension withdrawals

Fidelity Pension Plan confirms payment of withdrawal applications

Brett Hill, president and country head of the RF Group’s Cayman-based pension plan, confirmed that all applications from participants who have successfully applied for withdrawals from the Fidelity Pension Plan since 1 May 2020 had been paid.

Bermuda and Cayman at opposite ends of fiscal policy

At first glance, Bermuda and the Cayman Islands look similar in many ways: size, economic...

Fidelity Bank sells pension and insurance business

Fidelity Bank has undergone a corporate restructuring resulting in the sale of its Fidelity Pension Services and Fidelity Insurance businesses.

Global banks hit with US$5.6 billion in compliance fines in 2020

High-profile scandals and compliance failures in the US, Israel, Northern Europe and Germany have attracted the lion's share of penalties out of the total US$5.6 billion in fines for global financial institutions for non-compliance in the first half of 2020.

Government plans new corporate restructuring regime

Planned changes to the Companies Law will introduce a new restructuring officer regime.

Intertrust launches law firm in Cayman

Corporate and fund services provider Intertrust Group has announced it will create a new global offshore law firm. Intertrust Law will be managed from the Cayman Islands.

Banks announce faster system to clear local cheques

Six local retail that partnered to create automated clearing house services in Cayman two years ago, have announced a new system for the clearing of cheques.

Government projects 7.2% economic contraction in 2020

Cayman’s economy is expected to contract by 7.2% this year before recovering partially with a 6.4% expansion in 2021, according to Finance Minister Roy McTaggart.

Ombudsman orders registrar to stop collecting personal information

The ombudsman has ordered the Registrar of Companies to stop collecting personal data from company shareholders who are not beneficial owners under the beneficial ownership provisions of the company registration process.

Finance Minister: No direct taxation considered

Refuting reports that direct taxation may be needed to deal with the fiscal impact of a global economic recession, Finance Minister Roy McTaggart said Cayman’s “indirect tax regime is well established and supports robust levels of economic activity".

ESG funds recover strongly, hitting $1 trillion

In the second quarter, sustainable funds rebounded strongly from the coronavirus market sell-off, supported both by the stock market recovery and growing investor interest in environmental, social and governance (ESG) issues. Global inflows into sustainable funds were up 72% in the second quarter of the year, according to a Morningstar report.

Strong hedge fund performance in July

July has marked one of the best performances on record for the hedge fund industry.

Chart of the week

New company registrations slow down

New company registrations in the Cayman Islands were down 17% in the first eight months of 2020 compared to the same period last year, and 36.9% lower than between January and August 2018.