The future of the Cayman financial industry

If the Cayman financial industry were faced with extinction or only the potential of a diminished role, we would not bother providing you with the third edition of the Cayman Financial Review, which you are now reading. Cayman can continue to grow as a financial centre, provided both the new government and the financial industry do more to protect it from the financial imperialism of foreign governments, and provided the private sector – with the support of government – develops new products and continues to improve existing financial services.

How offshore financial centres will save countries

The great curse of democracies is that eventually a majority of the people become addicted to and demand ever more government benefits that cannot be funded by the diminishing numbers of taxpayers or through borrowing.

 

Natural resources and finance

Unfortunately, many jurisdictions rich in natural resource deposits are poor in rule of law.   

 

The best defence is a good offence

Both the US Congress and most of Europe took vacations at the end of the summer, bringing a temporary respite in most of the efforts by the American government, EU, OECD and many European governments; although American efforts to breach Swiss banking secrecy continued despite the August heat. Nonetheless, when congressmen and senators stagger back this fall from their mauling at the hands of constituents angry over soaring deficits and the proposed health care ‘reforms’, the proposed Stop Tax Haven Abuse Act, anti-offshore budget provisions...

Capital Mobility

An explosion of prosperity around the world has followed the increasing liberalisation (globalisation) of trade and investment.

 

Entering a year of uncertainty and opportunity

The year 2009 delivered a surprisingly strong recovery as equity markets rebounded from the historic financial crisis seen in the second half 2008. The remarkable levels of government investment into the global financial system seem to have rescued the world’s economy from a potential disaster that could have taken decades to recover from.  

Wealth creation vs control?

The apocryphal Chinese proverb, “May you live in an interesting age”, describes the current international financial environment – from the US FATCA to the various “me too” versions being hastily put forward by European governments, the world’s financial plumbing is being reworked.

 

Simplicity is the ultimate sophistication

Crystal ball gazing is precarious at the best of times, but especially so in the current world economic environment. This does not stop people predicting the timing of the global economic recovery.

Converging economic crime

At age 19 there was no doubt in my mind that I did not want a career in criminal law. I chose the much more objective (and enjoyable) commercial law. So much for that!   

 

The view from 1963

The global financial crisis, Cayman’s struggles to balance its budget, the sequential financial meltdowns among Europe’s PIIGS, and the turmoil in the Middle East’s impact on energy prices (let alone the question of whether countries like Egypt will end up better off or not) could all make one gloomy about the future. 

A future of wealth confiscation?

Warren Buffett famously explained to his shareholders in 2004 that investors “should try to be fearful when others are greedy and greedy when others are fearful". 

 

A new paradigm for economic sustainability

 Governments the world over are faced with the challenge of a growing imbalance between public spending and revenues.   

The case for offshore

The world’s financial infrastructure remains in flux. The United States’ FATCA, Britain’s “son of FATCA,” France’s “mini-FATCA,” the dozens of intergovernmental agreements (IGAs) being entered into by governments around the world with the U.S., and calls by many EU member states for IGA-like agreements of their own are changing the rules of international financial transactions.

 

Whither the Cayman Dollar?

The Swiss franc, the currency of a country that has a few things in common with the Cayman Islands, shot up from $1.082 (USD/CHF) on 5 April of this year to $1.375 on 10 August, an increase of 27 per cent in four months.

International regulatory policy: Risking a disconnect

Just as natural science developed out of a natural philosophy we are hopefully moving toward a science of regulation, both in the sense of being well-established knowledge and drawing on political science and quantitative economics.  

 

The Future of Money

The global debt crisis is leading to increased money chaos. Europe is in the worst shape, but the debt and money problems are to be found almost everywhere on the globe. As an economist who has often written about money, I feel a bit of embarrassment about how little progress we have made with “money”.

 

The growing threat of wealth taxation

We need a tax system which asks the billionaire class to pay its fair share of taxes and which reduces the obscene degree of wealth inequality in America.

 

The future of financial regulation: Dark clouds on the horizon

 Consider the following recent comments by key regulators in the United Kingdom and the United States and a likely one from France:  

 

The way forward for anti-corruption measures

OFCs need to exert more influence toward the global adoption of cost-effective anti-corruption measures.

The re-launch of the Cayman Financial Review

This is an exciting moment as we continue to build on the foundations and excellent work laid down by the previous publisher, Paul Byles....
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