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Overview
 The location of the world's fifth-largest financial centre might surprise you - it's the Cayman Islands. Situated in the western Caribbean between Jamaica and Cuba, the Cayman Islands' financial industry is outpaced only by the mainland global centres of New York, London and Hong Kong. There are now about 600 banks established in the Caymans, including 44 of the world's top 50, with assets on deposit exceeding US$500 billion. The Islands are also home to over 500 captive insurance companies, as well as some 2000 registered, administered and licensed mutual funds, with assets of over US$200 billion (as at 31 Dec. 1999). Royal Bank of Canada has been a prominent member of this dynamic financial community since 1964. Royal Bank of Canada Trust Company (Cayman) Limited, a wholly-owned subsidiary, was established in 1972 with a Cayman Islands class "A" bank and trust license as well as an unrestricted fund administrator's license.
Attractive Attributes
The success of the Cayman Islands as an financial centre is based on a set of very attractive attributes - strategic location, innovative legislation, sophisticated infrastructure and a well-developed professional community. The Islands are in a time zone that allows the Cayman business day to overlap those of major centres both north and south of the Caribbean from London to Los Angeles. All the world's major accounting firms have Cayman offices, as do dozens of the world's leading legal firms with international expertise. These resources complement the expertise of the Islands' thousands of financial professionals, many of whom are expatriates from major industrial countries in Europe and North America. Naturally, this thriving international community is fully connected to business and financial centres around the world by state-of-the-art telecommunications facilities. Three major U.S. carriers as well as Cayman Airways also provide an abundance of conveniently scheduled air transport services. These attributes make the Cayman Islands a particularly efficient location for serving clients throughout North and South America, as well as Western Europe.
A Thriving Financial Community
The preeminent position of the Cayman Islands today can be traced to its unique history, which has greatly favoured its development as a financial centre. Officially a British Dependent Territory, the Caymans have their own popularly elected Legislative Assembly, and a Government headed by an Executive Council. The Islands' legal system is based on English Common Law. These long-standing arrangements and a climate of racial harmony have produced a stable political environment. The highest standard of living in the Caribbean underpins the Cayman Islands' political and social stability. With a per capita gross domestic product (as of 1996) of US$28,900, there is little crime, and virtually no unemployment. The absence of direct taxation has always been a fundamental feature of the Caymans. An exceptionally hospitable environment for companies and trusts has been developed through close consultation with the private sector. Innovative well-crafted laws regarding financial institutions are supervised and regulated by the Cayman Islands Monetary Authority. These laws accommodate a wide variety of financial arrangements and instruments, while fully protecting client confidentiality.
The Caymans are also a politically favourable domicile for mutual fund sponsors. The flexible framework of the Cayman Islands Mutual Fund Law accommodates a very-wide range of fund structures and investment strategies within a user-friendly regulatory environment. In 1997, another important institution was added in the form of the Cayman Stock Exchange, which specializes in the listing and trading of mutual funds and structured financial vehicles based in international jurisdictions. The growth of international financial enterprises in the Caymans has led to the establishment of a large community of bankers, financial analysts and advisers, fund managers, lawyers and accountants. Royal bank of Canada has played an active part in the development of this community, and our Cayman office now boasts a multi-lingual staff with wide-ranging experience in all aspects of financial services.
A Warm Caribbean Welcome
Further advantages of the Cayman Islands environment are its warm climate and equally warm and welcoming people. Now firmly established in its international financial role, the Cayman business community offers a uniquely receptive environment to enterprises from around the world, and responds with world-class services in every respect. Royal Bank of Canada is proud to be part of this international success story.
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