Offshore bills raising fees open for last public input
(CNS): A dozen amendment bills to implement the UPM government’s additional revenue-raising measures from the offshore sector and a bill to implement Phase 2 of the regulatory framework for virtual asset services in the Cayman Islands have now been published in the Gazette. These bills are now open for the last round of public consultation and people are asked to contact their MP directly with questions, concerns or feedback before the bills are debated in parliament and likely passed next month.
As of Tuesday, no other amendment bills relating to the National Conservation Act or immigration legislation or a referendum law had made it to the government’s Gazette to meet the constitutional 28-day period of final consultation required on all legislation before it is debated in parliament.
The government has not yet set a date for its December meeting, but time is running out for any more laws to make it to the December session of the parliament if they are to comply with the constitution, given that Christmas is just five weeks away.
Since the UPM is now in the minority after the shocking resignations of four members last month, it will need the support of the opposition to steer any new bills or amendment bills through the House. Deputy Premier Kenneth Bryan had indicated that he was still hoping to pass the more controversial amendments and the referendum bill at the next meeting, regardless of the controversies surrounding all of them.
Whether the government decides to have another meeting in January or February remains to be seen, but as the elections will be on 30 April, the governor must prorogue parliament by 4 March to pave the way for candidates’ Nomination Day on 5 March and the start of the official eight-week general election campaign.
The offshore bills appear to be set for safe passage, even though Premier Juliana O’Connor-Connolly, who will now be bringing these pieces of legislation, had criticised her former deputy and financial services minister, André Ebanks, over some of them before he resigned. However, she will need all these laws to pass to support the spending in what was her 2025 budget plan.
The bills were developed following a comprehensive review of fee structures by the Ministry of Financial Services and Commerce, the General Registry and the Cayman Islands Monetary Authority (CIMA). The review found that some fees had not been adjusted in five to ten years or more. The industry’s feedback on the regulatory revenue proposals was also sought.
“These licensing regimes will give CIMA greater powers for supervising these activities and provide greater clarity for industry operating in the jurisdiction,” officials from the financial services ministry stated in a release about the bills
All of the bills listed below can be found on the Government Gazette.
* Companies (Amendment and Validation) Bill, 2024;
* Exempted Limited Partnership (Amendment and Validation) Bill, 2024
* Limited Liability Companies (Amendment and Validation) Bill, 2024;
* Limited Liability Partnership (Amendment and Validation) Bill, 2024;
* Partnership (Amendment and Validation) Bill, 2024;
* Building Societies (Amendment and Validation) Bill, 2024;
* Monetary Authority (Amendment and Validation) Bill, 2024;56
* Insurance (Amendment and Validation) Bill, 2024;
* Companies Management (Amendment) Bill, 2024;
* Securities Investment Business (Amendment and Validation) Bill, 2024;
* Mutual Funds (Amendment and Validation) Bill, 2024;
* Private Funds (Amendment and Validation) Bill, 2024; and
* Banks and Trust Companies (Amendment) Bill, 2024
The Virtual Asset (Service Providers) (Amendment) Bill, 2024 is to provide the regulatory basis for phase 2 of the Cayman Islands’ virtual asset service providers (VASPs) regime, which relates to the Introduction of a licencing regime for trading platforms and virtual asset custodians.
These licensing regimes will give CIMA greater powers to supervise these activities and provide greater clarity for the industry operating in the jurisdiction.
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Category: Business, Financial Services, Laws, Politics
As one of the few original crypto freaks that went in back during the Occupy Wall Street movement, I welcome the fact that exchanges will have to provide Proof Of Reserves and UBOs so we don’t face a repeat of the FTX debacle.
On the other hand I am very leery of what it might entail given the propensity of our dear CIG will try to impose to on-ramping/off ramping services , It is very likely that the selfsame will try to exact licensing fees such as the ones asked to Class B financial institutions !
That move would decimate Cayman’s attractiveness in an instant! And as a reminder the incoming US executive branch is VERY pro crypto currencies and there are very few things than can move faster than virtual currencies!
We (the voters) are the owners of the company, the MPs are the Board of Directors. Let’s stop whining and bit**ng, and do our work. Let’s read the bills, try to explain to those who do not understand them (including a couple of the MPs!) and provide the necessary feedback. That is our job as voters. Let’s do our job.
Speak now, or forever hold our peace…
Oh yes. Just simply contact our MPs to give our much-needed input because they are just SO accessible, and SO responsive to our needs.
Absolute bullshit. We are not represented. Not even a little. They will do what they want, and I resent this pretense that they are being consulted by the electors.
if they start to tax expats properties, that’s the beginning of the end for these islands,for they cry discrimination, then they will Tax Caymanians, and then income tax. IS NOT how much money they generate, ITS to much spending. wasting.THATS THE PROBLEM.
To successive Caymanian Governments, “diversifying” revenue sources means hiking fees on established sources.
Yes, the financial industry is successful and a great source of revenues but it will soon reach a point beyond viability.
Killing the goose!
Nah. The fee increases are nominal on a per-entity basis. Nudging them up slightly after such a long period is not going to disadvantage the jurisdiction.
You forget some fees, including work permits, were more than tripled under Mac? That was less than 20 years ago. They need to tread very carefully when trying to milk golden geese.
You just raise everything Sweet Premier as you have lots of things to blow our cash on.
What good is constituent input if the MPs haven’t bothered to read the Bills themselves? Huh what?
Reading them is one thing, understanding them is a real problem for some!.
Most.