Cayman Island Mutual Fund Fees Set To Rise

by Amanda Banks, Tax-News.com, London

27 October 2005

The government of the Cayman Islands has announced that registration fees for Mutual Funds are to increase by $500 from 1 January, 2006, taking the fee to list such assets to $2,500 each.

The increase affects fees for funds in items one, two, three, seven and eight of the Mutual Funds Regulations (2002 Revision), the government announced in a statement this week.

Raising of these fees marks the only new revenue-earning measure in the 2005-2006 budget, the government added.

In his budget presentation on 10 October Financial Secretary Kenneth Jefferson forecast that the fee increases will bring in an additional $1.5 million.

“The extra revenue is being used to fund additional output payments to the Cayman Islands Monetary Authority. The additional payments to the authority are to ensure that the authority can support the current growth levels being experienced in the mutual funds sector,” Mr. Jefferson said.

He also stated that the change was supported by operators in the mutual funds sector.

This amendment to the Mutual Fund Regulations will appear in Gazette number 22 on 31 October.

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