A new fund center is to be launched on the remote Pacific island of Rapa Nui, according to law firm Paasch & Eyland.
Partner of P&E, Jacob Roggeveen, said: “In 2010 fund managers are looking for security and confidentiality. The recent case concerning the IRS, UBS and Switzerland has highlighted that there are few places left for total autonomy.”
Paasch & Eyland will create a joint venture with Greenhorn Fund Administration. Thomas Noddy, CEO of GFA, said “We believe that fund administration is a truly global enterprise, yet the Pacific remains a black spot in many providers ‘follow-the-sun’ business models. We aim to change that.”
A number of funds have signalled their interest to domicile on the island. One hedge fund, Moai Capital, told Globalcustodian.com that “we are eager to be head and shoulders above the competition regarding risk management.”
Another fund, Somalian Merchant Navy Capital, famous for its aggressive takeover strategy, has also mooted interest. “A remote island seems a logical choice,” said a spokesperson.
A big coup for the new domicile would be the U.S. Prisoners’ Pension Fund. Hit with charges of insider trading after a number of high-profile hires, the fund is looking to escape the spotlight. “We are looking for maximum security for your assets,” said a spokesperson, who cannot be named for legal reasons.
“There have been many Doubting Thomas’s,” said Noddy. “But although the island is remote, liquidity remains an asset.”
“We are talking about a resurrection of trust,” concluded Roggeveen. “It is important that fund managers don’t put all their eggs in one basket, especially in times like these.”