Fund administrator Maitland will move some Cayman Islands-based positions to Halifax, but the company maintains that Cayman remains “pivotal” to its business.
Maitland confirmed Monday that as part of a wider growth strategy in the North American market it is in the process of restructuring, but has not determined the exact number of jobs that are going to be relocated from Cayman to Canada.
Maitland said it acquired Cayman fund administrator Admiral in 2012 “with the specific aim of bringing institutional substance to an alternative investments specialization.”
As part of this institutionalization and driven by client demand, Maitland opened a midtown New York office and a downtown Miami office in September 2016 to bring it closer to institutional and private clients in North America and Latin America, the company said in response to questions by the Cayman Compass.
“To accommodate our growth plans we are undertaking some restructuring in order to maximize operational efficiencies. As part of this, some staff will be moving from Cayman to Halifax in the coming months,” the fund administrator confirmed.
However, Maitland maintains, “We remain committed to Cayman as a jurisdiction for the unique benefits it brings to our global 16-office multijurisdictional offering.”
Through its acquisition of Admiral, Maitland has a 20-year presence in Richmond, Halifax, Nova Scotia and in Cayman.
“We are still in the process of evaluating this as part of a restructure process and do not have numbers to provide,” the company said. “However, what is important to note is that our presence in Cayman is pivotal to the Maitland business.”
The fund administrator in the past has relocated a significant number of jobs to Halifax due to cost pressures felt by the industry as a whole.
Former general manager of Admiral, Canover Watson, who was sentenced to a seven-year prison sentence in February 2016 in a fraud trial unrelated to his work at the fund administrator, in 2012 questioned at a conference Cayman’s ability to attract and retain talent in sufficient numbers.
Particularly for fund administrators, Cayman’s infrastructure and size was an increasing challenge, he noted at the time. The decline of the fund administration business in Cayman was largely due to lower labor costs and better access to skilled labor in onshore jurisdictions such as Canada and Ireland, he noted.
In addition, outsourcing solutions where administrators may contract the funds in Cayman but outsource certain aspects of the services of that fund to places as far as India were becoming an increasingly used option, Mr. Watson said at the time.