October 2000 - as issued by Government Information Services
Financial services growth has been brisk this year, demonstrating the continued strength of the Cayman Islands as a major international financial centre. Year-to-date increases in the numbers of registered banks, trust companies, mutual funds and captive insurance companies holding licences in Cayman range from 4% to 10% over 1999.

At the end of September 2000, there were 57,900 companies registered, which is a 51% increase over 1999. Mr. Jonathan Nicholson, Managing Director of Merrill Lynch Bank & Trust Co (Cayman) Ltd, noted that they have incorporated 1,866 companies so far this year, more than double last year's figure.
Up to the end of September, there were 17 new banks registered, bringing the total to 465 and eight new trust companies, taking the total to 114. There have also been 246 new mutual funds, for a total of 2621; and 17 new insurance companies, bringing the total to 544.

"I believe these figures demonstrate the confidence in the Cayman Islands as a jurisdiction of choice for quality business," said Company Financial Secretary, Mr. George McCarthy. "The Cayman Islands has continually amended and strengthened its regulatory regime to keep pace with international standards. We encourage quality businesses to operate here, and are pleased to see that type of business continuing to increase," he added.

This summer, the Cayman Islands introduced legislation to expand The Cayman Islands Monetary Authority 's (CIMA) ability to assist overseas regulatory authorities. Legislation expanding the agency's oversight role to include building societies, credit unions and money- transmitters was also passed this year. In addition, legislative action was taken to make key anti-money laundering provisions on client identification, internal reporting and record-keeping, which existed previously within the industry 'Code of Practice' issued by the government, legal requirements.

The banking community has reacted positively to the legislation Cayman has introduced to strengthen regulation and international co-operation, according to Mr. Eric Crutchley, President of the Bankers Association.

In recognising this response, CIMA Managing Director, Mr. John Bourbon, said: "This past year we have worked with organizations including the FATF to ensure international compliance, and are pleased to note that the industry is taking a supportive and responsible approach. At the end of the day, it is understood that a sound regulatory environment is good for business - and the growth we have experienced bears this out."

Another significant growth area is The Cayman Islands Stock Exchange (CSX), which is one of the fastest-growing offshore exchanges in the world. Current listings are already 84% above last year's figure, having grown from 210 at the end of 1999 to 386 this month.

The CSX, which gained "approved organisation" status from the London Stock Exchange last July, is applying for recognition from a number of other international regulatory bodies. And, following the successful opening of the exchange to derivative warrants last March, the CSX is now getting ready to expand its issues with the listing of Eurobonds. It is expected that the rules governing such listings will be brought into effect later this year. According to Ms Valia Theodoraki, CEO of the CSX, the exchange's European clients are already expressing a good deal of interest.

Growth has also been posted by The Cayman Islands Shipping Registry, a Category One British registry and the world's leading offshore luxury yacht registry. The Registry has registered 175 new vessels since the beginning of the year, a growth of 14% from 1999. A major function of the Registry is maritime administration and the regulation of ships on the register.

In February this year, the registry became the first government department in the Cayman Islands to meet the ISO 9000 quality standard. This is a globally recognised seal applicable to any area of endeavour both in the manufacturing and service industries. Cayman's is one of only three British shipping registries, including the UK itself, to have acquired that accreditation.
Emphasis has been placed upon streamlining and updating the merchant shipping laws. The goal is to ensure that local laws keep up with international commercial developments, so that shipping registry services complement the other financial services sought by ship owners. "We want to provide all of the services our investors require in a major international financial centre," said Mr. Gibbs. "Each ship on the Cayman register has a physical representative who is required to practice due diligence. We look for quality owners who are going to operate quality ships."