Answer ... The Cayman Islands does not have competition legislation to promote or seek to maintain market competition or to prohibit the misuse of market power.
In terms of competition within the broader market, fintech companies (particularly those involved in investment and asset management) have begun to compete for capital with more traditional investment and asset management participants. While the overall market share for such new participants remains small, they are attracting attention from family offices and institutional investors that see greater possible returns by placing their capital with such new players in the market. Broader market penetration (which is being encouraged by more traditional service providers – such as auditors and administrators supporting this business) will, we expect, continue this trend.
The establishment of the special economic zone (SEZ) has given fintech participants a competitive advantage as against their non-SEZ counterparts – in particular with respect to the ease and efficiency of setting up business in the Cayman Islands. The regulatory sandbox will also provide fintech participants with the opportunity to explore business opportunities not as accessible to more traditional businesses.