We are pleased to report that the European Union (EU) announced on 6 October 2020 during a meeting of its Economic and Financial Affairs Council (ECOFIN) that it considers the Cayman Islands to be a fully cooperative jurisdiction for tax purposes. This announcement comes as a result of various legislative amendments in respect of the regulation of collective investment vehicles introduced by the Cayman Islands in response to its EU commitments over the course of the year.
An official statement of ECOFIN recognised that appropriate measures are in place in the Cayman Islands, referring particularly to collective investment vehicles which were the subject of private funds legislation passed earlier in 2020. This legislation resulted in the registration of over 12,000 private funds with the Cayman Islands Monetary Authority by 7 August 2020.
This decision is welcomed by the financial services industry and provides international recognition of the Cayman Islands' effective and appropriate regulatory framework.
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