By CIMA – For the past five decades, the Cayman Islands has maintained its position as the number one domicile for hedge funds. Central to its success is a comprehensive regulatory framework and the ability to adapt to evolving international standards, thus highlighting the jurisdiction’s commitment to the enhancement of financial supervision.

Through these ongoing efforts, the jurisdiction remains highly competitive in several areas. In addition to its renowned success in the funds industry, the Cayman Islands is home to more than 40 of the top 50 banks worldwide, including all major accounting firms, law firms and fiduciaries. It is also recognised as the top domicile for healthcare captives, and number two in captive insurance. 

Status of Cayman Islands funds industry 

As of 31 December 2019, the total number of regulated funds was 10,857 compared to 10,992 for the same period 2018, an overall decrease of 1.2 per cent.

Looking ahead

According to research conducted, the pace of change in the US mutual fund industry has been rapid, and that has created both challenges and opportunities for firms to adapt quickly to remain relevant. For firms to stay competitive in the fast-changing environment, keys to success are their strategic positioning, technology transformation, value for money and battle for talent. Despite pressures on profitability, investments in top talent are essential to ensure the ability to transform firms and drive success. The ability to deliver an innovative, technology-enabled, and seamless client experience will continue to create value for both investors and managers. Adoption of integrated platforms that manage all activities – investments, distribution, reporting, operations, and regulatory compliance will make firms competitive and efficient. Successful firms will be those that gain better insights by using artificial intelligence, robotic process automation, data and analytics.

Through a sophisticated yet robust regulatory framework, which is supported by a wide range of quality professional expertise within the industry and the embracing of innovative technological changes, the Authority is confident that the Cayman Islands will maintain its dominance as a leading financial services centre in which to do business for many years to come. 

Cayman Islands Monetary Authority