As a major financial jurisdiction, the Cayman Islands came into high praise from the Foreign Affairs Committee (FAC) of the United Kingdom Parliament for its financial sector legal and regulatory regime.
This commendation was given to Leader of Government Hon Kurt Tibbetts on Monday, 3 December in London as he and British Virgin Islands (BVI) Premier Hon Ralph O'Neal gave oral testimony before the FAC on the Overseas Territories' relationship with the Foreign and Commonwealth Office (FCO).
The FAC comprises a 14-member panel of backbench UK Members of Parliament, chaired by Labour MP Mike Gapes.
In June, the committee announced an enquiry into the FCO's exercise of its responsibilities and its achievements in relation to the Overseas Territories and scheduled meetings with heads of these territories.
Panel member and Conservative MP Michael Moss asked Messrs Tibbetts and O'Neal to put their territories' achievements in perspective:
"A recent report by the United Kingdom National Audit Office found the regulations of your financial industries in both of your territories were superior to others in your general region. Why do you think that is the case, why is it that you are better than some of the other territories and centres in the region?"
Mr Tibbetts explained that Cayman's financial industry has a culture of compliance supported by legislation.
"We have an environment which accords with international best practice and this encourages business to be done in the Islands, because businesses want to conduct their affairs in a jurisdiction which [complies with] such best practices," he said.
Mr Tibbetts explained that the Cayman Islands attracts quality service providers such as lawyers, accountants, auditors, company managers and fund administrators, who complement the strong legislation.
"And of course all of those things combined are essential to ensuring that our financial service industry is a successful one. To add to that, we are very stable politically and this is underpinned by the constitutional relationship which we have with the United Kingdom," he said.
The Leader of Government Business listed a number of supportive features for the industry that makes the Islands attractive: good international air links; an independent regulatory body in the Cayman Islands Monetary Authority; and a strong legal judicial framework, independent of the executive arm of government and which gives confidence to business.
"It means that disputes between parties can be dealt with by a very competent judiciary," he said.
"The Islands also have a very efficient, competent and independent civil service that is able to implement [the executive arm's policies which are designed to create a business environment in which international financial services can flourish."