Cayman News Services – The government have introduced only one new revenue raising measure in the 2011/12 budget and it will be levied against the hedge fund sector. The new fee will apply to ‘master funds’ that form part of existing ‘master or feeder’ structures that will now be regulated by the Cayman Islands Monetary Authority (CIMA). The premier announced the introduction of $1500 fee during his late evening budget address last week. McKeeva Bush said that government had “received representations from leaders in the local financial services sector that such a fee could be introduced, without any adverse effect on the sector.”
He explained that these type of funds are not currently regulated by CIMA but just as they are regulated in other jurisdictions those funds will be required to pay a modest fee of CI$1,500per year to register with the local financial authority. Government expects to raise over $6million from the new fee and Bush said that $4.5million off that cash would be used to offset fuel duty increases on residential customer’s CUC bills.
