Premier McKeeva Bush

By the Caribbean Journal staff

Premier McKeeva Bush announced that Cayman’s government would tax and regulate hedge funds for the first time, with the announcement coming in his budget address. “The Government will introduce a single revenue measure during the course of the 2011/2012 fiscal year,” according to the text of his address. “The hedge funds sector, certain ‘master funds’ will be regulated by the Cayman Islands Monetary Authority, just as they are regulated in other jurisdictions.” Funds meeting that criterion will be required to pay a fee of approximately $1,825 per year. Hedge funds are not currently regulated in Cayman. Bush said his government had received representations from local financial leaders that the fee could be introduced without an adverse effect.