Cayman’s financial services professionals held differing views on how the government’s immigration reform bill, which passed through Parliament on 12 Dec., would impact their sector.
On one end of the scale was attorney Nick Joseph, founder of relocation advisory consultancy, Reside Cayman, who said: “The new immigration bill won’t have any material impact for the vast majority of financial firms.”
At the other was Chris Johnson, the managing director of Chris Johnson Associates, who believes the bill is the latest sign of the breakdown in relations between the government and business. “Laws and regulations are introduced without thought, which are frequently harmful to the business community,” said Johnson.
Other financial services figures, who didn’t want to go on record, felt the bill would have limited impact on Cayman’s status as a hub.
Below we break down how specific aspects of the proposed bill may impact financial services.
Bill breakdown
Some of the most significant changes in the bill, which was tabled by Immigration Minister Michael Myles on 10 Dec., focus on the process by which non-Caymanians can obtain Caymanian Status or apply for naturalisation.
“One indirect impact of the proposals is that it will stretch the time that some companies are paying PR fees for their workers, which will add to costs,” said Nick Joseph. “Realistically that is a relatively inconsequential blip for many firms. They will continue to be secure in the ability to attract and retain, the talent they need.”
Another key change in the bill is an increase to the minimum income threshold for non-Caymanians with dependents to $5,000 per month and an additional $1,000 for each dependent. While that may impact sectors with lower average salaries, it is unlikely to be felt in finance.
“They are already bringing in expat employees on high wages,” said Joseph. “So a raising of income requirements before dependents are permitted will not impede skilled financial service sector workers.”
When it comes to Cayman’s financial service firms attracting and retaining top talent “The main hurdle is immigration inefficiency and slowness, not the cost,” said Simon Cawdery, a director at HLX Management.
Some finance workers may balk at the part of the bill that prohibits work permit holders from changing employers – without due cause – for two years. Yet it’s a potential boon for the financial firms, says Joseph. “It could also be viewed as a positive for some companies operating here because it means they can invest in bringing in expat talent and not be as concerned that a rival firm will poach the worker.”
Perhaps the biggest impact of the bill will not be the specific changes but the message it sends to the global financial community.
“Expats and locals worked in harmony together with the government to build the infrastructure that we have today,” said Johnson. “We were helped, of course, by what took place in the 1970s in Bermuda and the Bahamas and we learnt from their mistakes.”
Everyone that the Compass spoke to for this article agreed that the government has to strike the right balance between creating opportunities for Caymanians and also attracting the international talent needed to cement Cayman’s role as a leading global financial centre. While the details of the bill seem acceptable to most financial sector players at this point, it remains to seen if the optics prove more damaging.
The Compass will reach out to other financial services firms as well as Cayman’s wider business community for more reaction next week.
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Unethical by Myles. Businesses will need to raise wages for expats, now or never.
Is there a danger of “killing the goose that laid the golden egg”?
Well, I’ve personally seen 60 billion (with a B) leave the country this year (2025 alone). The Japan Yen carry continues to unwind as well and CIMA raises fees and tries to milk every ounce they can get. Businesses are tired of it.
Immigration reforms were sorely needed and this bill is an effort to address this issue, for better or worse.
But the underpinning issue in our islands, which presently impacts immigration, is the lack of preparation our youth get to take the many employment opportunities which exist across our economy.
All these changes to address immigration, permanent residency and status will be pointless and perhaps a big failure, if the same zeal and efforts aren’t applied to reforming our public education system, so as to prepare school leavers for jobs in every single sector of the economy.
A good education system is the foundation of any society. Hopefully, meaningful education system reform is next on NCFC agenda. We’ll watch.
Why would education be fixed now when it hasn’t been for 15-20 years… If anything, we will be LUCKY to get foreign teachers to want to come to Cayman anymore with what the government is doing. Education will soon be on par with 3rd world countries unless you are paying for $20-$25,000 a year private education.
It’s a simple fact that the brightest minds of teachers won’t come when the government says – we don’t want expats. Just happy my kids went through Clifton Hunter High years back because its only got worse.
As immigration laws continue to evolve, numerous businesses face challenges in managing the escalating cost of living and associated expenses. One recommendation for improving the immigration process is to transfer the responsibility of work permits fees from employers to employees. This approach would result in a more selective pool of individuals eligible to work in the region. Currently, although employers are responsible for paying work permit fees, employees often remit approximately 75% of their earnings back to their home countries. Consequently, at the conclusion of their employment, the economic contribution to the Cayman Islands is minimal, while the employer is burdened with the financial responsibilities linked to their employment period.
This is potentially the stupidest idea unless you want to see all expats leave the island.
You expect people to pay $10,000-15,000KYD per year for an accounting work permit when you make 50k-70k USD and at some firms work 7 days a week for 10-14 hour days. Even the Indians and Philippinos won’t put up with that and will leave.
Can the Compass confirm if it is true that one large foreign organisation employing well over 100 foreign employees from the same country are not required tp pay work permit fees for any of them?.
Never heard this in my life. Where is this coming from?