Cayman: Time to lose the secrecy

Now is the time for Cayman to revisit its approach to transparency, especially in some of its fund governance practices.

There is a culture of secrecy in the offshore fund industry, especially in the Caribbean, including in Cayman. It is a hangover from past practices and is, to a certain extent, embedded in the way business is still conducted today. To understand why this is it is necessary to know something about how these jurisdictions developed over the past few decades.

Cayman and other similar offshore jurisdictions were first and foremost bases for high net worth investors. That is how they got going in the late 1980s and early 1990s. Institutional investors didn’t start investing in offshore hedge funds and other alternatives until well after Cayman had established itself as a base for individual high net worth investors.

To read more on this story, see the February issue of The NED.