Wednesday, September 25, 2013

Freyer and Morris on the Making of Cayman

Tony A. Freyer and Andrew P. Morriss, University of Alabama School of Law, have posted Creating Cayman as an Offshore Financial Center: Structure & Strategy Since 1960, whih is forthcoming in the Arizona State Law Journal.  Here is the abstract:    
The Cayman Islands are one of the world’s leading offshore financial centers (OFCs). Their development from a barter economy in 1960 to a leading OFC for the location of hedge funds, captive insurance companies, yacht registrations, special purpose vehicles, and international banking today was the result of a collaborative policy making process that involved local leaders, expatriate professionals, and British officials. Over several decades, Cayman created a political system that enabled it to successfully compete in world financial markets for transactions, participate in major international efforts to control financial crimes, and avoid the political, economic, racial, and social problems that plague many of its Caribbean neighbors. Using archival sources, participant interviews, and a wide range of other materials, this Article describes how the collaborative policy making process developed over time and discusses the implications of Cayman’s success for financial reform efforts today.