(via Compass Cayman) During the presentation of the 2014 budget, the Cayman Islands government proposed
” … the implementation of a licensing and registration fee for hedge fund directors whose investment funds are registered in the Cayman Islands. [Finance Minister] Mr. Archer said that revenue stream was delayed during the last government budget to allow “for proper consultation with the financial services industry.”
“Premier Alden McLaughlin said the regulatory measures aimed at hedge fund directors had been envisioned for some time as part of Cayman’s efforts to comply with international standards for transparency within the financial services industry; an industry that currently accounts for more than half of all local government revenues.”
“Cayman cannot stand alone against this global tide,” Mr. McLaughlin said, adding that participation in international reporting initiatives would “come at a cost.”
“But this is necessary and indeed inevitable as the alternative would surely have brought us ruin.”
In related news, the BVI Beacon reports that the Caribbean Community (Caricom) has formed “two committees to create a unified response to revive the Caribbean’s stagnant economies.
“At a meeting in Port of Spain, Trinidad, on Sept. 17, the leaders of 15 Caricom members agreed to form a “Commission on the Economy” that will focus on regional strategies for revival, according to Barbados Prime Minister Freundel Stuart, who will lead the new group.”
Reducing economic dependence on the financial services sector will be key for the political sustainability of any transparency reforms in Caribbean secrecy jurisdictions.