Ministerial Statement on Financial Services Fees Consultation

As the Minister for Financial Services and Commerce, I believe, in light of recent media reports, that the public may find a brief overview of initial proposed 2025 financial services fee changes helpful, as well as a summary of the Caucus/Cabinet approval process.

To provide overall context, when the Cayman Islands Government’s 2024/2025 Budget was approved by Parliament in December last year, it included a budget policy statement that gave all Ministries a broad mandate to review all current fees and consider new revenue. This is to assist the Government meet the country’s budgetary needs in 2025. It was expected that many fees would be considered that derive from financial services, including Cayman Islands Monetary Authority licence fees--those that might be suitable for an increase, as well as potential new fees.

The Ministry for Financial Services and Commerce is therefore supporting Government’s budget policy statement by exploring proposed fee changes. This is being done in consultation with most financial services entities including the Credit Union.

Importantly, no formal action to change fees has been taken to date. The consultation process is designed to give stakeholders input into the recommendations that the Ministry prepares. I will then present analysis and recommendations to Caucus. Per standard procedures, Caucus will then decide which revenue measure recommendations to support.

Caucus’ recommendations then advance to Cabinet for formal approval; and again, in line with standard procedures, any necessary amendment bills will be presented, debated and considered by Parliament for passage.

I appreciate all feedback that has been shared to date, including by the Credit Union. I also ask all stakeholders to continue providing feedback so that the Ministry can develop well-informed analysis in the overall best interests of the country.