Formed to promote the development of the Cayman Islands financial services industry, Cayman Finance has been instrumental in the growth of the captives sector in Cayman in recent years—and also helped it overcome some of the challenges it has faced. Here, Jude Scott, chief executive of Cayman Finance, gives his take on the captive sector’s importance to Cayman and how collaboration has been key to its enduring success.
How important is the captives sector to Cayman?
The captives industry remains one of the key sectors in our financial services industry. Our position as one of the world’s leading captive domiciles remains one of the reasons that the Cayman Islands uniquely holds leadership positions across several areas of financial services simultaneously. The industry also contributes significantly to employment and government revenues.
What sets it apart as a destination?
The access to other key areas of financial services to our captive client whether it’s banking services, accessibility to highly qualified insurance managers, or world class accountants and attorneys is one of our key strengths as a jurisdiction. The Cayman Islands has also developed as a leading jurisdiction for healthcare captives and this is also one of our unique strengths as a captive domicile.
How is it protecting its market share in the face of competition from rival domiciles?
We will continue to do what we do best with a focus on excellence in client services. In terms of addressing the competition, we continue to enhance and benefit from certain inherent competitive advantages such as our one stop shop feature and access to some of the world’s best professionals in the areas of insurance, legal and accounting services. We do not believe these are features that our competitors can replicate easily.
"The key is to strike the appropriate balance between adherence to global standards while encouraging economic growth of each sector."
Where have been the areas of growth within the captives sector in recent years?
Healthcare captives continues to be our most significant growth area although we have also seen growth in other areas.
How have the combined efforts of bodies including Cayman Finance, IMAC and CIMA helped encourage growth in this sector in recent years?
Together the private sector and the government have worked hard to represent the jurisdiction at key international events and also to ensure that the regulatory framework and other features are in place to maintain the jurisdiction’s reputation as a first class financial services centre.
How will Cayman help captives manage regulatory changes in other jurisdictions that could affect the attractiveness of captives going forward?
Monitoring and addressing regulatory developments has always been one of our key strengths as a jurisdiction. The key is to strike the appropriate balance between adherence to global standards while encouraging economic growth of each sector. We continue to do this via a unique partnership between the private and public sector stakeholders.
Jude Scott is a former partner of EY and former Global CEO of Maples and Calder. He has served on numerous Cayman Islands Government and private sector committees, including the Cayman Islands Society of Professional Accountants, the Cayman Islands Financial Services Council, the Education Council, the Insolvency Rules Committee and the Stock Exchange. He has been chief executive of Cayman Finance since December 2014.
For more information on Cayman Finance visit: www.caymanfinances.com
Cayman Finance, Jude Scott, Cayman