The business environment in the Cayman Islands features:

• An environment of fiscal independence and political and social stability
• The legal system is based on UK common law, with ultimate legal appeal to the UK Privy Counsel
• No direct taxes, including no income, capital gain, dividend or property tax, are levied on funds domiciled within the islands
• Leading-edge telecommunication systems and a comprehensive network of professional service providers
• A regulatory environment that properly balances the need for regulation and the requirements of the international financial markets.

Cayman Law Relating to Mutual Funds

Under the Mutual Funds Law introduced in 1993 and most recently revised in 2003, the Cayman Islands Monetary Authority controls the licensing and day-to-day supervision of funds and fund administrators. Regulatory and licensing procedures are extremely straightforward and can usually be completed within a few days.  There are currently over 8,000 funds registered with and regulated by CIMA.