New government directives granting key employee status for executive and essential positions in the financial sector requiring experience will be very helpful in retaining and attracting additional investment and substantial presence to the Cayman Islands, according to Cayman Finance Chairman Anthony Travers.
“These changes are long overdue” says Mr. Travers. “A financial services business is based in equal part on relationships with clients and on the quality of the professional service. The rollover policy was forcing out high level employees and that unfortunately also removed these essential elements of the Cayman financial experience.”
Competitive pressures have been building in other areas, such as fee structures and the threat of US and European legislation. Established competitive jurisdictions such as Canada, Dublin, and Luxembourg have been marketing against Cayman specifically referring to the” rollover policy “as an Achilles heel issues in an attempt to poach business away from Cayman and without necessarily drawing attention to their own vulnerabilities. Resolution of the rollover issue in relation to the financial industry will remove an area of competitive vulnerability
The new directives from the current CIG cabinet require the Work Permit Board and the Business Staffing Plan Board to grant key employee status for senior positions like managing director, senior vice president and senior manager. Key employee status will make the person exempt from being rolled over in 7-years and allow them to apply for permanent residency.
This policy decision will reassure companies currently operating in Cayman that their concerns are being heard and reduces the likelihood of those firms changing jurisdictions. It is the type of progressive government action that should lead to higher employment, greater revenue to government, and a broader base to the local economy. As such Cayman Finance provides its unqualified support.