Caymans To Tax Some Hedge Funds

Jun 14 2011 | 11:43am ET

Long known for having neither, the Cayman Islands are set to introduce both taxes and regulations for the thousands of hedge funds registered there.

Caymanian Premier McKeeva Bush last week unveiled the broad strokes of the British overseas territory's budget for the fiscal year beginning July 1. It includes an annual fee on some hedge funds domiciled in the country.

Hedge funds covered by the fee—Bush was short on details, promising to deliver the full budget to the Caymans Legislative Assembly shortly—would pay CI$1,500 (US$1,800). The C$4.5 million raised by the measure—the only revenue-raising measure in Bush's budget—would be used to pay rebates to islanders to offset their electric bills.

"This summer's just beginning and from what I can see in electrical bills, it's going to be a long, hot summer," Bush explained.

The new levy coincides with the Cayman Islands Monetary Authority's first hedge fund regulations. Bush has said that neither measure will adversely affect the Caymans' position as a financial center.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...