The Senior Management team at Caledonian Fund Services recently took the opportunity to respond to recent concerns that the funds industry in Cayman may eventually fall foul to the continuing trend of increasing regulation, by giving an extensive interview to Cayman Funds Magazine.
Dave Sims and David Walker felt that despite a number external factors that are leading many to draw the conclusion that offshore financial centres will lose their appeal, that “hedge funds as an asset class is here to stay and the business case for the offshore centres remains strong and compelling”.
The chief causes for concern are the Foreign Account Tax Compliance Act, which specifically affects US citizens with offshore assets; and the Dodd-Frank Act, which was signed in to law by President Obama in July 2010.
Sims responded to these fairly recent regulatory reforms by saying, “Where global regulators propose regulatory amendments with the genuine intention of protecting investors and the industry and not merely protecting a country or region, the regulation is positive as it helps guarantee the longevity of the asset class. I see regulatory equilibrium being reached by 2013″.
You can read the full article by accessing the following link Cayman Funds 2012, “Well positioned for the future of funds”