Recent media reports have focused on the fact Mr. Michael Froman, President Barack Obama’s pick for U.S. trade representative, has invested via Cayman Islands funds.
The focus of these various reports, which seems to cast a shadow over what is otherwise legal and well-regulated activity in the Cayman Islands, is unfortunately misguided and driven largely by the domestic political environment in the US.
While Cayman Finance cannot discuss the affairs of any individual client, we believe the mischaracterisation of Mr. Froman’s investment as far as how it reflects on the Cayman Islands as a financial services jurisdiction needs to be corrected.
The Cayman Islands has been the leading offshore hedge funds jurisdiction for almost two decades and has assisted many clients, who invest directly into major OECD economies such as the US. This has been facilitated via perfectly legal structures, and it is important to note investors in Cayman Islands funds from around the world are required to pay tax on the income in their home country under the home country’s tax laws.
The facilitation of investment directly into major OECD economies and, therefore, the creation of jobs in those countries are positive benefits to those countries.
The notion perpetuated that somehow funds in the Cayman Islands are not effectively regulated or that our legal framework encourages any form of tax evasion is at best outdated and at worse an intentional mischaracterisation purely for entertainment or political purposes (which seems to be the case in the recent media reports).
The Cayman Islands has been shown objectively to have one of the most well-regulated financial services jurisdictions anywhere in the world based on its anti-money laundering and tax cooperation regime. We encourage the media to be balanced by recognising these facts.
Radio Cayman – 11 June 2013
Managers of Wealth – June 2013
CNS business – 10 June 2013
