The CEO of Cayman Finance, Jude Scott, said the Cayman Islands financial services industry has welcomed the new limited liability company (LLC) regime, which came into effect just three weeks ago with the implementation of the law and the publication of underlying related regulations. “This new LLC law will give our industry a competitive advantage in the international market and enhance the critical role we play in the global economy,” Scott said. “It is the most recent example of Cayman’s constant focus on evolving our industry to anticipate and meet the ever-changing needs of our clients.”
Speaking in the Legislative Assembly recently, Financial Services Minister Wayne Panton explained that the new law paved the way for the formation of companies in Cayman similar to a Delaware limited liability company. It is a business vehicle with separate legal personality, like a Cayman Islands exempted company, but with certain features and flexibility akin to a Cayman Islands exempted limited partnership — including, with reference to the nature of a member’s interest in an LLC, the manner in which accounts are maintained and with parties having substantial freedom of contract among themselves to determine the LLC’s governance and other internal workings.
Scott said creating this type of legislation and remaining on top of market needs helped Cayman remain a leading financial centre.
“The Cayman Islands financial services industry’s collaborative relationship with government supports continuous enhancements to our legal infrastructure to create innovative new products and services like the Cayman LLC,” Scott said. “The success of those efforts demonstrates why the Cayman Islands is by far the largest domicile for global offshore alternative investment funds – home to over 11,000 regulated investment funds, many thousands of private equity funds and international commercial asset financing transactions, with the world’s top managers using Cayman Islands vehicles in their structures.”
Cayman Finance had worked with the ministry in shaping this latest piece of legislation and Scott said the sector was looking forward to working with the industry to make it a success.
News Source: CNS Business