Premier Bush: Article 70 of EU Document Harmful to Financial Services

Premier McKeeva Bush presents at the Overseas Countries and Territories Association (OCTA) meeting

Premier McKeeva Bush on Wednesday 26th September, presented on behalf of the Cayman Islands and other territories, the pressing need to change Article 70 of the draft Overseas Association Decision (OAD) document of the EU. Article 70 calls for “convergence” with EU legislation of the financial services regimes of the Overseas Countries and Territories (OCT). This would require that the Cayman Islands bring its laws on financial services in line with EU legislation. Premier Bush has opposed this measure since it was initially introduced in the draft OAD.

It was due to the possible danger of Article 70 of the draft OAD that the Hon. Premier and his delegation traveled to Greenland for the 13th meeting of the Overseas Countries and Territories Association (OCTA).

The presentation was made to the members of the European Commission, calling for recognition that if this provision were enacted, it would seriously damage the financial services industry in Cayman and other OCTs. “Cayman’s current regulatory regime is compliant with robust international requirements, providing a strong foundation element to attract investment that is safe in our jurisdiction,” Premier Bush said. He went on to say that, “those investments in turn fuel growth of the world economy”.

The OAD is the legal instrument that governs the relationship between the EU and OCTs, and is at an advanced stage in the revision process, leading to a new OAD coming into effect in January 2014.

Cayman and other territories with significant financial services interest hope for the support that the UKG has promised as the matter goes forward to the Council of the EU for finalization.