Q: What are the objectives of the association?
The Cayman Finance mission statement is:  “To promote the development of the Cayman Islands Financial Services Industry through cooperation and engagement with domestic and international political leaders, regulators, organisations and media; to promote the integrity and transparency of the Industry by legislative and regulatory enactment and to encourage the sustainable growth of the industry through innovation, education and integration”.

We meet those objectives through media messaging, jurisdictional marketing initiatives, engagement with government and through actively managing information in order to make it accessible to our stakeholders – namely our members and users of Cayman’s services, regulators and governments.

Q: What are the issues facing your membership/industry and how is the association dealing with them?
Although the issues facing our industry sometimes seem complex, they can be broken down to three essential components:  competition from other jurisdictions; regulatory demands (perceived and otherwise); and the deliberate mischaracterisation of Cayman and how it positively contributes to the global economy. 

Cayman’s financial services industry operates in an extremely competitive and constantly evolving environment. We are very aware that our industry is highly mobile. We recognise that investors and managers can move their financial vehicles quickly, have done so and given the wrong conditions, will continue to do so.   The competitiveness of an offshore jurisdiction requires a number of factors to be in place:  the right amount of regulation; business-friendly legislation, a positive immigration message that is demonstrably implemented and an acceptable cost of doing business.

We are aware that a flawed immigration policy and an increased cost of doing business have negatively impacted our financial services industry. Not only are we faced with the lack of inward investment that this economy needs to be revitalised, but we have also experienced the down-sizing or relocation of financial services business, especially in the fund administration industry. Many other jurisdictions have been actively marketing to Cayman-based fund administrators and many jobs for Caymanians have been lost to other jurisdictions such as Halifax, Dublin, Toronto and Montreal. Our immigration policies simply do not work and we need root and branch reform.

On the regulatory point, we are still in the wake of the most significant global financial crisis to be witnessed by this generation and the call for increased regulation and increased taxation is drowning out the truth of the role in efficient market-making that Cayman plays. This call for increased regulation is not being dealt with on a level playing field (rather it is being instigated by politicians and regulators in the originating countries of the financial crisis with thinly hidden agendas).

But on analysis, Cayman has superior all crimes anti-money laundering legislation; has bilateral tax information exchange agreements with 20 countries in addition to the automatic exchange of information with all 27 EU member states that we subscribe to under the EU Savings Directive; has full regulator-to-regulator agreements that come with our IOSCO membership; and provides the platform that provides the liquidity and capital that is fuelling the recovery of the world’s biggest economies -- transforming emerging markets, creating wealth and employment. 

Cayman still struggles with an undeserved cloud of negativity and the mischaracterisation that perpetuates negativity. Governments around the world are carrying crippling deficits caused by ill-conceived ‘stimulus’ programmes, overstaffed civil services and massive overspending. In this context the tax free Cayman model represents a threat to big government philosophy. 

Q: What are the main drives that the association will be doing in the next year to involve and support your membership/industry?
Cayman Finance will continue to actively engage with the media and government through various means of open communication. A Memorandum of Understanding has recently been signed between Cayman Finance and the Cayman Islands Government, which sets out mechanics for increased integration between the two bodies in terms of the positioning and promotion of Cayman’s financial services industry. Cayman Finance feels it is vital for the health of the industry and the strength of our public relations and marketing to improve public sector and private sector integration. 

One of our main objectives is to have every financial services business in Cayman as a member and we will be making efforts to achieve that goal through member involvement in jurisdictional marketing, information sharing and industry consultation.

For more information:
Anthony Travers, Chairman
Cayman Finance
C/O Denise Gower, Head of Marketing
T     +1 345 623 6363
E    denise.gower@caymanfinance.ky
W    www.caymanfinance.ky