Fund Growth Boosts Cayman Government's Fee Income

by Amanda Banks, Tax-News.com, London

01 October 2007

The Cayman Islands Monetary Authority (CIMA) collected CI$60.3 million (US$73.5m) in financial services sector fees on behalf of the government for the financial year ended 30 June 2007 - an increase of over 8% increase on the CI$55.7m (US$67.9m) of the previous year.

Fees from the investments and securities sector accounted for 47% (CI$28.4 million) of the total collected. Growth in the sector, from 7,845 funds in June 2006 to 8,972 at June 2007, and the increase in mutual fund fees in 2006, helped to account for the increase.

The banking sector accounted for 33% (CI$20 million), the insurance sector 12% (CI$7 million) and fiduciary services 8% (CI$5 million).

CIMA supervises and collects licensing/registration and annual renewal fees from a broad range of regulated financial services businesses in the Islands. These fees form part of the Government's revenue.

The Authority also manages the currency and the investment of the currency reserves on behalf of the Government. For 2006-07, CIMA received CI$5.7 million in investment income, up from CI$3.9 million the year before, principally due to increased US dollar interest rates.

CIMA Chairman, Timothy Ridley, stated that: "CIMA, now in its 10th year, is very pleased to continue be a strong contributor to the Islands' revenue while providing the appropriate level of risk-based regulation and supervision of a key sector of the Islands' economy."

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