Dep’t of Financial Services’ consultation process

The consultation process of the Department of Financial Services Policy and Legislation (DFS) has not significantly changed since the Ministry of Financial Services, under which it falls, was created in 2013. The process is similar to those found in other countries with financial services industries.

During consultations, the DFS provides draft legislation to the industry, which then comments on the draft legislation and/or provides input as to how the draft legislation could affect them. The department subsequently considers these comments in preparing final proposed legislation, which is presented to the Minister of Financial Services and government for approval to be gazetted as a bill.

Parliament then debates the bill. If the bill is approved, it becomes law.

It’s worth noting that in many cases the department’s drafts and final proposed legislation are based upon regulatory standards, set by global bodies, for global financial services. Through these standards, consumers, investors, and tax revenues at local levels and also worldwide, are protected.

Moreover, standards set by these bodies are closely followed by the overwhelming majority of countries with financial services industries, as an indicator of good governance. To ensure the standards are appropriately applied in these countries, the global bodies periodically assess whether or not the countries are indeed upholding them.

In consultations, therefore, the department’s duty is to ensure that the final legislation both meets the global standards, and is appropriate for industry. This supports the reputation and stability of the Cayman Islands’ financial services industry, and our overall economy.

The department remains committed to the principle and practice of consulting industry on draft legislation, for both the application of global regulatory standards to Cayman’s financial services industry, and on legislation that provides new products and services for industry commercially.

Supplied by the Department of Financial Services Policy and Legislation