The Cayman Islands is a British overseas territory and as such has a UK Governor, while its democracy is loosely based upon the UK’s legal system. This relationship brings political stability to the country, and is considered vital for attracting business to the islands.
The fact that the legal system is so closely related to the English legal system is extremely important as the ultimate right of appeal is the Privy Counsel in the UK, and there is also the ability to extend international conventions and UK laws wherever appropriate.
The islands also have an enviably low crime rate, and businesses are reassured by the fact that the Royal Cayman Islands Police Service can always call upon the UK police forces for assistance.
The UK also has the ability to approve borrowing by the Cayman Islands government, and while this policy hasn't always proved popular some experts do think it has been beneficial in keeping the country's financial management under control.
This relationship is not one-sided, and the Cayman Islands also bring considerable benefits to the UK, one of which is the international transfer of capital through structured finance products and funds. This helps generate substantial revenue for the City of London through accountancy firms, investment managers, banks and law firms. For its part, the Cayman Islands adhere strictly to international standards, a fact that was recently acknowledged by the Financial Stability Board.
Of course the Cayman Islands isn't all about business, and its tourism industry has substantially increased this year, with visitor numbers from the US and Europe up by 6.5% and 5.7% respectively.
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