A significant day in the calendar of the Cayman Islands Stock Exchange (CSX) was marked on 4 March, 2004, when the UK Inland Revenue acknowledged the CSX as a ‘recognised stock exchange’ under Section 841 of the United Kingdom Corporation Taxes Act 1988. This came after five years of negotiations between the respective Governments of the UK and the Cayman Islands, which ceased this year upon the agreement by the Cayman Islands Government to enter into the European Union Savings Directive (EUSD) – but not without first extracting from the UK Treasury the recognition so actively sought for the CSX.
The recognition has opened up tremendous investment opportunities in Cayman Islands listed funds to the UK public. In particular, UK residents currently enjoying tax deferrals through investment in personal equity plans (PEPs) and individual savings accounts (ISAs) can now take advantage of the wide range of securities listed on the CSX, previously unavailable to them, and UK pension schemes can hold securities listed on the CSX. As a result of such increased investment opportunities, there is scope for more effective marketing strategies in the UK for CSX-listed hedge funds and mutual funds against competitor jurisdictions.
