Law paves way for new offshore business
Wayne Panton, Minister of Financial Services, Commerce and Environment
(CNS Business): The financial services minister steered a piece of legislation through the Legislative Assembly Wednesday that he said paves the way for a new type of business vehicle in the Cayman Islands, which has been driven by industry demand. The Limited Liability Company Bill, 2015, which was presented by Wayne Panton and passed unanimously in the House yesterday, provides for the formation of a new type of business vehicle that is a hybrid between a company and a partnership. The law was created in conjunction with the offshore sector and eagerly anticipated for the new business it will generate, keeping Cayman at the forefront of offshore services.
Panton said it was intended to complement existing business vehicles and blend key advantages of the Cayman Islands Exempted limited Partnership Cayman Islands Exempted Limited Company into a new body corporate and increase the versatility of the sector.
“This hybrid approach will be useful in a variety of investment business spaces,” the minister said. “Given the position of the Cayman Islands as a leading jurisdiction for investment fund formation, an LLC will increase the versatility and attractiveness of our financial services products and has created a significant buzz in the market place and gives our industry a new product to frame a marketing push around.”
As he explained the features and advantages of the new financial vehicle and the provisions in the law, Panton said it had also avoided using the word ‘exempt’ to help head-off international criticisms, as that term was becoming wrongly associated with perceptions of companies operating outside the law.
Panton suggested the law would enhance the offshore sector and a lot of people in the financial services sector were looking forward to its implementation as the legislation was driven and lobbied for by the industry. He said the law was the first of its kind and it would help the Cayman Islands maintain the advantage as a pace setter in creating the types of financial vehicle that the clients doing business here wanted.
“This is certainly a very exciting development for the financial services industry, and will underscore and enhance the position of the Cayman Islands as a responsive investment, vehicle formation, jurisdiction,” he said. “LLC legislation provides an opportunity for Cayman to demonstrate that it continues to be a pace setter in the international market, particularly as none of the other main competing jurisdictions have created such legislation.”
The minister said that he believed in time this would be viewed as an iconic product and the industry will benefit greatly from the legislation it as it will give Cayman a competitive advantage.
The bill, which received broad support from all members, was one of four brought by the financial services minister to the Legislative Assembly on Wednesday that are expected to boost the offshore and financial sector. They included the new Accountants Bill, intended to help improve standards and regulation in the profession, as well as an amendment to the Companies Law for the abolition of bearer shares, and changes to the Tax Information Law to introduce administrative fines as part of the new compliance regime for the common reporting standard.
See Panton present the laws below (starts 46:18):
Category: Finance, Financial Services, Law
