London law firm opens new office in Cayman Islands as firm believes tax haven is central to ‘new economy’
London law firm Chancery Advisors has opened a new office in the Cayman Islands, describing the location as “critical to the new economy.”
Canada law firm said that opening new offices in what has historically been known as a tax haven will help it facilitate offshore hedge funds and activist investors in forcing firms to act in line with the principles of the ESG agenda.
“As the clock ticks down on climate change, ESG needs capital with a short investment horizon, and digital assets need trading, not investment capital,
to achieve sustained liquidity. Investment vehicles domiciled in Cayman typically have the right kind of capital,” the firm said.
Speaking to City PM Chancery Advisors partner Dan Harris claimed the huge amounts of “investible capital” that flow through the Cayman Islands could be used to accelerate the green transition.
Chancery’s plans for its new Cayman Islands offices come after the EU put the British overseas territory on its tax haven blacklist, after it claimed the offshore jurisdiction lacks “appropriate measures” to prevent tax abuse.
The Cayman Islands became popular as a safe harbour for tax avoiders due to having no income taxes, no property taxes, and no capital gains taxes. Instead, the archipelago relies entirely on indirect taxation to fund itself.
Harris said that while setting up offshore funds is the “bread and butter” of any Caymans Islands based firm, Chancery plans to generate most of its revenues through working with companies already based on the islands in the Caribbean Sea.
“The firm has the advantage of being able to build out a practice with the future economy in mind and be attuned to the needs of clients from day one. We are very excited by what the future holds for the firm,” he concluded.