Cayman Finance CEO Steve McIntosh told Compass TV’s Forefront show that improving efficiency in work permit processing could support continued economic growth in the jurisdiction.
During his 19 Feb. Forefront appearance, McIntosh said he agreed with the principle behind the process – that government must ensure there is nobody on island who could fill the role before a work permit is issued – but believed waiting times could be reduced. “That determination doesn’t need to take three months or longer,” said McIntosh. “Amendments and renewals can take up to a year”, said McIntosh, which “creates a great deal of friction”.
McIntosh revealed that two-thirds of Cayman Finance members believed the government’s proposed immigration bill “would make it harder for them to attract and retain talent [so] there is a risk that jobs could be lost to other jurisdictions”. He also disclosed that Cayman Finance, an industry body that receives funding from both its private-sector members and the government, “is working very closely with the government” on the issue of work permit processing times.
His remarks chime with recent comments made by Minister for Caymanian Employment and Immigration Michael Myles at the Chamber Economic Forum in January, where Myles said he was willing to work with private sector solutions.
McIntosh said Cayman Finance is also working with the government to help Caymanians enter the financial services sector. “Improving Caymanian employment opportunities in our industry is our top priority.”
“Developing Caymanian talent and also having an effective immigration system that allows companies here to grow and thrive are not mutually exclusive – we can do both,” he said.
The size of the opportunity
Global finance is currently being disrupted by the rapid growth in digital asset investment plus the adoption of blockchain technology by financial institutions.
McIntosh praised Cayman’s successful regulatory moves so far, which mean it is attractive to digital asset businesses but doesn’t fall foul of international bodies, such as the Financial Action Task Force.
But he believes the growth potential is huge. “20 years from now there is a very good chance that everything [in financial services] will look like fintech,” said McIntosh.
“We don’t want to be left behind; we don’t want to be the Kodak of financial services.”
Using approximate numbers, McIntosh said there were more than 30,000 investment funds registered in Cayman, compared to roughly 1,000 digital asset or fintech firms. “It’s small but it’s growing fast.”
Cayman’s fintech headstart means the jurisdiction is well-positioned to take advantage of the disruption, said McIntosh. But it needs more effective immigration policies to do so. “Right now, we are leaving money on the table because our industry continues to be this economic powerhouse, but we are not using this to the fullest extent possible,” said McIntosh.
If Cayman can unlock its finance potential then everyone – not just well-paid finance professionals on work permits – will benefit, said McIntosh.
“It accounts for 60% of GDP and two-thirds of government revenues,” said McIntosh, citing a recent report commissioned by Cayman Finance. “Education, healthcare, infrastructure – everything that the country needs – two-thirds of it is funded by the financial services sector.”
“Given the importance of the financial industry to the country, do we want it to grow or not?” asked McIntosh. “Because if we want it to grow in line with our growing population and the growing needs of the population, we need to allow [financial services] to grow.”
McIntosh noted that during the last 17 years, the size of Cayman’s finance workforce – currently at approximately 6,500 people – had not grown significantly and therefore wasn’t responsible for the islands’ large population increase over that period.
