Cayman needs Minister of Financial Services

The global financial crisis is potentially a perfect storm brewing that will be used to punish jurisdictions like the Cayman Islands, even though we are innocent bystanders in the recent global financial crisis that was principally caused by irresponsible public and private sector actions in major economies (principally the USA and the UK, encouraged by the politicians in both countries.

There are now calls from the IMF, the French (who have taken over the presidency of the EU for the moment) and a broad range of politicians and agencies looking for someone else to blame (preferably someone who has no vote and no place at the negotiating table) and for the opportunity to expand their particular empire of control and influence. And riding with this army are those with agendas that are extreme and in no one’s long term interest. The most obvious and disastrous calls are for a single global regulator and a single global tax collector run by unaccountable bureaucrats on tax free remuneration packages.

Of particular immediate significance to Cayman is a little known discussion paper released by the EU this summer that proposes the EU examine and perhaps change its relationship with Members’ Territories. This obviously includes the Cayman Islands. This may be benign of course, but I rather doubt it. There is a serious risk the outcome will be increased intrusion in and regulation of Cayman’s financial services by the EU, through a willing UK.

It is imperative Cayman prepare its defences, line up its friends and supporters, redouble its promotion of our strengths and more aggressively pursue the negotiation and closing of bilateral agreements with key jurisdictions. To make this happen effectively, Cayman must have a politically elected Minister of Financial Services to lead the charge. This does not necessarily require a constitutional change now; it simply requires a reallocation of portfolios. The current allocation between the Financial Secretary and the Minister of Education does not work and is failing the Islands.