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

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.