19 June 2013Analysis

Cook Islands passes captive legislation

The Cook Islands, comprised of 15 small islands in the South Pacific, has become the third country in the region to pass captive insurance legislation. Appleby Group drafted the legislation. The Cook Islands will concentrate initially on attracting corporations based in New Zealand and Australia.

Minister Mark Brown said: “the government has made a commitment to diversifying our economy by encouraging, strengthening and promoting our Financial Services sector. The passing of the Captive Insurance Act will increase business opportunities and is an important step in the growth of this key industry to our economy.”

The Financial Supervisory Commission will be responsible for licensing and overseeing compliance of Cook Island Captives. Paul Heckles, commissioner of the Financial Supervisory Commission said: “the Cook Islands are a stable and well regulated jurisdiction. This bespoke piece of legislation complements and adds to the range of financial services we offer to the international community.”

Jenner Davis, CEO of the Cook Islands Financial Services Development Authority added: “the legislation was designed to provide advantages over current options for the region through flexibility and ‘right touch’ regulation. We also offer cost stability, relevant expertise and convenient location.”