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News
UK dithering is harming Cayman business
Speaking from London Mr indicated that at the first sign of a “The FCO’s sniping at hedge
Anthony Travers, OBE, the payroll tax they will have to funds plays right into the hands of
Chairman of CIFSA and The CI consider their options. I believe this EU legislators who are desperately
Stock Exchange added, “The latest will inevitably lead to job losses and trying to curb the success of The
signs from the Foreign and it will affect both the highly paid City of London and in particular
Commonwealth Office is that they and more junior members of staff the hedge fund industry.
do not want to turn this short term and lead not to a revenue increase “In short if the FCO attack the
budget issue into a war but they but a decrease. The move from Caymans, they damage London. I
would like to see some measured indirect to a direct system of would have thought in the current
cuts in public spending. That seems taxation is a seismic shift which has financial crisis that would be a
entirely reasonable. not been thought through and horrendous example of unintended
“Our information also indicates which is not justified on the facts.” consequences.
that The Minister for Overseas Turning to the hedge fund “I urge the FCO to acknowledge
Territories, Chris Bryant, MP is not industry Mr Travers added, “I am that the CI Government has put
The delay by the British
going to die in a ditch demanding also getting a strong feeling that Mr forward sensible ideas to cut costs
Government in signing off on
we bring in income tax. However all Bryant and his colleagues at the and raise revenue without the
funding arrangements in The
the signs are that they are still FCO fail to appreciate that in introduction of totally unnecessary
Cayman Islands is of itself
looking for a payroll tax and that is obstructing the CI Government taxes and allow the CI Government
becoming the major cause for
a cause for grave concern. they are going to reap a bitter to borrow the relatively small
concern among leading business
“I have canvassed senior business harvest with very far reaching amount of money it needs to carry
practitioners.
players in Cayman and they have consequences. out its business.”
Opportunities in China for Foreign Asset Managers
A legal update from Dechert’s market in the People’s Republic of World Bank has raised its China
Financial Services Group has China (“PRC”) and practical tips annual GDP growth forecast for
focused on describing on the most effective way to 2009 to 7.2%. As a result of GDP
opportunities for foreign asset establish such joint ventures. growth averaging more than 10%
managers in China, currently the Notwithstanding the recent per year for the past three
third-largest economy in the severe global economic slow- decades, a middle class of over
world. An overview of the market down, China is on track to 300 million people has emerged in
and market opportunities for achieve its annual gross domestic China. Middle class Chinese live
asset management in China is product growth target of 8% predominately in tier 1 cities
followed by a description of the thanks to a robust four trillion (namely Beijing, Shanghai,
formation and structure of joint stimulus plan. Goldman Sachs has Guangzhou and Shenzhen) and
venture fund management recently revised its forecast of the coastal regions. Household
companies (the type of legal China’s annual GDP growth savings are estimated at
structure through which foreign upward to 8.3% for the current approximately US$3.29 trillion
asset managers may enter the year and 13.5 % for 2010. The and growing.
© Devonyu
IMF result will bring business to Jersey, claims HSBC
The International Monetary Fund The report, published on 14 who want reassurance that their one of the pioneers in Tax
(IMF) report on Jersey has praised September, classed Jersey as being money is safe while they live and Information Exchange Agreements.
the Island for the regulation and compliant or largely compliant with work across the globe. This report “Jersey’s ranking alongside and,
supervision of its finance industry. 44 of the 49 global reinforces the Island’s already in some cases, above G20 and EU
Jersey was ranked in the first recommendations. This positions enviable credentials and shows member states, reinforces the
division of the 120 countries the offshore jurisdiction above the Jersey to be more than able to robust position the Island has taken
assessed by the IMF. United States (43) and the United compete at the top level for with regard to anti-money
Kingdom (36), in the comparison international banking business. laundering and tax evasion. It really
table. “Although Jersey has always been is a world-class jurisdiction in
Martin Spurling, CEO Offshore seen as well-regulated and a which to do business and I expect
Islands for HSBC, and non- politically stable jurisdiction, there many savvy expats and investors,
executive Director of Jersey Finance has been a great deal of speculation who may have been unsure about
said, “This is an excellent result for recently about the transparency of offshore banking in the past, to
Jersey and endorses the offshore banking centres. It is look to Jersey as their premier
jurisdiction’s high quality particularly pleasing to note that choice.”
regulation and legislation. the IMF report has recognised that The IMF’s assessment of Jersey
“Our customers are Jersey ‘has no banking secrecy was at the invitation of Jersey’s
internationally mobile expatriates provision’ and refers to the Island as Chief Minister.
November 2009 Investment International www.investmentinternational.com
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