Financial services neglected by candidates
Johann Moxam: Independent candidate for George Town North - Managing Partner of Lainston International Management Ltd. Background and education: Moxam studied at the University of... More(CNS): The importance of the financial service sector in keeping the Cayman Islands economy afloat over the past year has been highlighted in the latest reports from the Economics and Statistics Office. No other private sector employs as many Caymanians as finance, and the revenue the next government will need to navigate its way through the next year will come largely from the businesses operating in the offshore space.
However, many of the 50 candidates vying for office, even the incumbents on the government benches, show little knowledge or understanding of financial services or have explained how, if they are elected, they will protect Cayman’s golden goose.
According to the ESO’s latest report on the economy, during the COVID crisis, as other sectors dramatically declined due to the lockdown and border closures, the financial services contracted by only 0.7% during the first nine months of the year.
While hospitality literally collapsed, with a decline of 64.7% over the same period, the financing and insurance services sector continued to fuel our domestic economy and prevent what could have been a much greater increase in unemployment.
There are only a handful of candidates that understand the challenges ahead for Cayman’s fundamental economic pillar, and Johann MoxamJohann Moxam: Independent candidate for George Town North - Managing Partner of Lainston International Management Ltd. Background and education: Moxam studied at the University of... More, who is vying for the George Town North seat, is warning that under the PPM-led government, a lack of focus and mismanagement as well as the failure to introduce necessary legislation has left the jurisdiction exposed to new attacks and no appropriate policy support.
Moxam told CNS that while the PPM may be “playing the politics of fear over the management of the pandemic”, what voters need to fear is the mismanagement of this critical sector. He urged voters to ensure they put the country’s financial services sector in the safe hands of candidates who have experience and understand the modern demands of the financial services industry.
He said that over the last four years the government failed to understand the importance and urgency — and the consequences — of not passing the necessary legislation to help Cayman maintain its competitive edge. It has not provided adequate resources for marketing, PR and promotion, and has understaffed the Policy Secretariat and lost jobs to other jurisdictions.
“It is time to address the years of neglect for the local financial services industry through stronger protection and more effective promotion of the Cayman Islands as a tax neutral hub that supports global economic growth and recovery,” Moxam said. “This industry is the single largest employer and generator of government revenue. We are failing to access additional high value, direct and indirect economic benefits available to us from financial services.”
Moxam, who is challenging Joey Hew
Joey Hew (PPM): George Town North MLA, Minister of Commerce, Planning, Infrastructure. Biography: Hew has been a member of the Legislative Assembly since 2013, when... More for George Town North, said Cayman must increase staffing to facilitate a fully functioning Financial Services Secretariat and combine the financial services ministry with the current trade and maritime affairs ministry.
While the outgoing premier, Alden McLaughlin
Alden McLaughlin (PPM): Red Bay MP, Premier, Minister of International Trade, Investment, Aviation and Maritime Affairs (MITIAMA). Biography: McLaughlin has been a member of the... More, has already bagged that ministry for himself if he is re-elected, Moxam said he has proven over the last four years that he is not the man for the job. Without a properly funded marketing and promotional programme for the financial services industry, the country cannot address the reputational crisis the industry is undergoing as a result of the current administration’s neglect.
The industry also needs a financial services training programme so that Caymanians with interest in participating are educated across a wide range of areas, enabling Caymanians at all levels of employment to prepare themselves for the industry and have an equal opportunity to participate in its success.
Moxam, the former managing director of Merrill Lynch Bank and Trust Company (Cayman), one of the world’s largest publicly traded financial institutions, said there was room to adapt the changes in regulation to this jurisdiction’s advantage by actively encouraging international businesses to establish physical offices and headquarters in the Cayman Islands to become a full-service international financial centre.
“This will ensure that we will benefit from licence fees and their direct contribution to the local economy by hiring Caymanians, renting offices and buying local goods and services,” Moxam said.
“It is an indisputable fact that the financial services industry is the lifeblood of the modern Cayman success story. It differentiates the Cayman Islands economy from others in the region and provides the level of employment at salaries that enable a higher standard of living,” the candidate who is hoping to take the job that McLaughlin desires said.
“Its service providers are the stable, lucrative generators of employment for Caymanians, revenue for the Cayman Islands Government and steady business for local companies. It must be protected.
“When all other options have been exhausted, the Cayman government must be willing to assess its legal options for recourse against unfair initiatives, putting the Cayman Islands’ financial services industry at a competitive disadvantage.
“Our goal should be to maintain international best practices and the highest standards applicable to all service providers and jurisdictions,” he added.
Category: Election News
It’s a such shame Johann is running against Hew, we’d be much better off with both of them instead of some of the others.
We’d be much better off without either of them.
Johann claims the Premier is dealing in the politics of fear; however, what I am truly fearful of is the brand of politics displayed by Johann and Chris Saunders taking root in Cayman. There is not much of a choice in Bodden Town West and I can understand the electorate returning Chris just not to waste the salary on the other choice who is clearly not ready, I do however hope that George Town North will not send Johann to Parliament.
If his brand of angry attack rhetoric becomes the norm, I fear it won’t be long before we are truly engulfed in politics which is simply about attacking opponents while distracting from the fact that the candidate himself has no track record in public administration.
Anyone can sit in the stand and be a critic; however, I have more respect for the man who has actually competed in the arena and faced the lion. He is called El Fuego for a reason, I am much afraid that hot air is all there is.
Finally persons with a backbone are running for election and dimwits like you are claiming their angry?! smdh We should be angry and fed up over how the current administration has sold us out! ALL PPM MUST GO!!
Moxam is effectively saying Caymanians are competing with the world for jobs in their own country…so to hell with you Caymanians looks like more years of permits and PR for whomever can pay if this home grown Cayman exploiter gets in. You don’t the same opportunities this guy did.
Dear Anonymous 10.34
You are entitled to your opinions but that was not my message or the intent. I was stating facts and sharing my position based on over 20 years experience at a management level.
If you are interested in removing your cloak of anonymity please call me and we can meet up and discuss matters. Hopefully that will help you better understand my position and the reality as an owner of a financial services provider.
Please call me at 9260984
If your intent was to mislead the public and spread a false narrative because of the “silly season” that is your prerogative. However, I’m comfortable to answer or address any question on the matter face to face.
The reality is and COVID 19 demonstrated that the primary provider of jobs for Caymanians is financial services. It represents 40% of revenue for CIG and over 60% of Gross Domestic Product. The other largest employer is the Civil Serice. Without the revenues from the financial services industry many Civil Servants would have been furloughed or let go etc.
Cayman’s version of gold is the financial services industry and has been for over 40 years. Look around the region for the proof if you doubt my observations and message.
Enjoy your weekend.
Best regards
Johann Moxam
Thank you for your offer to discuss but what I feel is a somewhat vague explanation of your support for the industry.
In regard to the former, I appreciate your provision phone details and invitation to discuss. However, I prefer and open and transparent to all forum such as CNS (sure sometimes braised administration but seemingly 1000times far less conflicted than other “news” providers.
In relation to the financial service industry importance I agree however the international noose is closing every day. It seems no matter how much more transparency and reporting we agree to, we are really fighting a battle for market with bigger players and are the current distracting “cat to kick”.
However my main issue is with catering to the business that we have under Alden with a practical disregard to the regulations that were created over time by many smart Caymanians to secure the sufficient positions of Caymanians within the industry. These are the same regulations that were enforced and provided you and the likes of current leader of PPM to mandated a chance. At that time we our work permit holders understood the there tenure was uncertain but appreciated whatever time they were given.
You must admit that has all changed…we have entitled and demanding even litigiously expatriates. We have qualified positions going to expats because of a better subjective test scoring by and equally qualified expatriate. We have the increasing experience requirements for renewals. We have sent our children to school and they come back to lowest level opportunities for position or advancement. They are faced with the ever increasing experience levels that are impossible to catch and/or new custom thresholds requirements or new tests. No longer is it the best qualified Caymanian…it is the best country friend. And I don’t want to hear “if you want to complete globally” because if we want to complete globally but my people are excluded in opportunity…I DONT.
We have totally traded security of employment and opportunity for government revenue of work permit and now PR fees and your reliance on these fees will create only socially sponsored opportunities for our children.
Hiding behind anonymity after being given the chance to contact him directly shows your agenda and cowardice. I hope Moxam realizes this is a trap and does not respond as no answer will be good enough after clearly stating his views on the industry.
This is still a country of backroom dealings complete with different rules for any blacklisted unfavorables therefore critics often prudently feel they need anonymity in open forums.
Wishing a public forum rather than a private forum is really just to get an opinion documented.
Btw unless “Caymanian since 1972” is your name, you are an idiot.
You are seeking to alter what was stated in the article by Mr. Moxam. The long rant is not accurate instead of focusing on the facts as to how the FSI works and benefits the Cayman Islands. It is clear you do not understand or chose not to accept anything that does not line up with your view of industry.
I disagree…I have acknowledged the importance of the industry HOWEVER the entire industry used to be regulated to ensure the Caymanians had preferential treatment in their own country. Citizens security of employment is a priority of all governments for their citizens. When these rules were enforced Mr Moxam and Mr McTaggart and others had the opportunity to gain experience and advance with the industry.
However these rules are no longer enforced and blatant machinations like anonymous chumming by slimy recruitment agencies, obscure and unnecessary requirements, uncatchable experience, etc..are being allowed. Our lawyers have noted immigration’s preferential treatment and found it necessary to created the Legal Service Bill. They effectively saw our governments reliance on unfettered permit fees and felt their best chance was to separate legal service while leaving the accounting, fiduciary and other financial service firms to fend for themselves.
So I’m really just saying start applying the rules again.
Btw calling an opposing opinion a “rant” is shallow and conveniently dismissive.
Johann, only keyboard warriors on here, but none bold enough to actually call you and say their names.
He is running for “public office” what is all this Nancy stuff about calling me? The public is asking questions in a public forum, answer the bloody questions!
“Moxam is effectively saying Caymanians are competing with the world for jobs in their own country…”
We are. Just as almost everyone on the planet is. The only places that aren’t are in terminal economic decline.
Wow so all country borders have open immigration is that right? Jobs in our country were at one time first for qualified Caymanians. If you can’t compete while complying with the regulations the way they are, your company should have hired a proper manager as they used to do when companies had to comply.
Johann Moxam is a breath of fresh air in local politics. He is honest qualified and will fight for us all. Cayman needs people like now not the ppm and especially not Joey Hew.
The is so spot on. We can’t keep trying the same people if the results are not improving. Its time to change as long as the choices are credible and I believe Johann is a very decent choice here.
Sweeping Global tax reforms will shut Cayman’s financial sector down shortly. Better find an alternative source of revenue for these islands.
Development is the alternative source of revenue that continues to fund the government, but you are so busy blaming Joey that you miss that point.
Beware of Johann, he purports to be an expert in Everything, hence promoting himself as our savior.
At least Joey belongs to a team who represent proven and diverse strengths.
What is the total value of concessions given to developers over the past 8 years?
What is the total value given to developers over the past 4 years?
The PPM cannot afford to share that information. Hence, why Joey and Alden avoid the discussion at all costs.
You should also ask…What is the value of stamp duty and other license and residency fees that have flowed to government as a result of these concessions..
That number will demonstrate the net benefit to our treasury and balance your one sided question 3.50.
3.50pm You obviously have no idea what a concession is or what benefits it can provide. In the private sector some other names for concessions are promotion, discount and sales. These are done with the aim of attracting and increasing business in the future. When Govt gives a developer a concession it is also as a promotìon or discount with an aim to increase jobs and revenue in the future. When property is sold, stamp duty is paid to Govt which is then used to pay for various needs including salaries for teachers, police officers, and assist the elderly and needy. So next time you hear concession think discount or sale aimed at getting more business. Thank you.
Mr. Moxam has demonstrated sound understanding of key issues whilst offering practical solutions and fought to protect Cayman from a government that come off the rails. Cayman needs him elected to parliament.
He is the better candidate after comparing his resume, qualifications and experience in executive management roles. His authenticity is refreshing unlike all the other candidates including the incumbent.
We cannot afford another four years of lies and clandestine deals that will cost us all. The lack of transparency and accountability from this government and the shenanigans of the incumbent has been shocking to watch over the last four years.
Joey has sold out Cayman to developers like dart that control him. He does not care about the environment and does not have the slightest clue about financial services. He had 8 years and has done nothing. The time for change is here. Cayman needs better leaders. Yohan has proven he gets it and deserves his chance now because he is the better candidate for what cayman needs now
Joey sold out to contractors and now this guy is going to continue the sell out of caymanian jobs for wp and pr fees. To hell with Caymanian security in their own country.
Moxam all the way! He is the better choice for GTN
Well said, Johann. GTN voters, please make the right choice, for all of our benefit!
Poor Joey he is over matched in this race. There is no way any reasonable person looking at this race objectively can choose him over the better all round candidate in Johan Moxam.
The deep state should be very worried when Moxam gets into Cabinet. Things will be very different. Some deserve jail time.
Game over for lil joe next week
Dear Joey
Pack your belongings and prepare to become a consultant for dart wellon and the other bent developers. They know how to grease the wheel and get what they want every time
There’s a New King of the North and his name is Johan Moxam.
I have been in Cayman for over thirty years and can say Mr. Moxam has proven his quality in the positions publicly taken and leadership he demonstrates. Cayman desperately needs a real champion like Mr. Moxam to help manage the affairs of state in the local Parliament. God speed and continue all the good works.
There is only one credible choice in GT North and Johan Moxam has secured the votes of my family and neighbors.
Mel would be proud of you
Well said Mr. Moxam
Enfuego with the knock out. Joey and the PPM have no idea what just hit them
This article shows why Johann Moxam is an outstanding candidate and the next minister of financial services.
Joey Hew cannot compare and is not qualified for any leadership role. This country relies on FSI, therefore I will not and cannot give my vote to Mr. Hew who has demonstrated a complete lack of understanding of how the economy works and why the Cayman Islands is the envy of the rest of the Caribbean.
Thank you Mr. Moxam for clearly showing a thorough grasp of the issues and importance of the financial services industry. It is Cayman’s oil industry.
It is beyond ridiculous that Cayman does not have a sizeable Govt investment fund saved up and put aside and generating income after 60 plus years of financial industry fees and income.
It’s the negligence equivalent of the UK having nothing to show for North Sea oil while little Norway has the largest sovereign wealth fund of any nation on earth.
The Norway Fund stands at 11 Trillion 253 plus
Currency conversion fail? It stands at around US$1.3 trillion.
Correct.