In the consultation paper, government asked industry associations to comment on the revenue measures and to provide alternate proposals, with justifications and detailed information to support their positions.
“This feedback will help government to understand the true impact of the recent revenue measures, which were implemented between October 2012 and January 2013, and to consider appropriate actions,” said Wayne Panton, minister for financial services, commerce and environment.
Mr. Panton thanked the financial services stakeholders who participated in the consultation process and noted that Cayman Finance will be working with the ministry to evaluate the proposals and make recommendations on any changes to be made.
Cayman Finance welcomed the invitation from the ministry to be a part of this process and for the opportunity to ensure that any recommendations are in the best interests of the financial services industry and the country as a whole.
“This is another example of the commitment by the Cayman Islands Government for continued dialogue with the industry, and Cayman Finance remains committed to collaborate in any way possible,” said Gonzalo Jalles, CEO of Cayman Finance.
Mr. Panton also reiterated that there are no plans to introduce new revenue measures in the current year, and that any policy decisions on the previous measures, once determined by Cabinet, would be made in the 2014/15 budget year.
The Chamber of Commerce submitted a response to the consultation on Aug. 15, recommending a reversal of some of the fee increases instituted by the previous UDP government.
“Our members have indicated that the revenue measures introduced in recent years in some sectors of the financial services industry are now placing Cayman in a competitive disadvantage, and we support a reduction in fees in areas where our prices have eclipsed our main competitors,” Chamber President Chris Duggan said.
The Chamber supplemented its response with an analysis of 17 fee increases that included comments from Chamber members and the level of equivalent fees in competing jurisdictions.