Cayman Islands premier, Hon. McKeeva Bush, at 13th meeting of the Overseas Countries and Territories Association (OCTA) in Greenland, 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.

Mr. Bush said 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.

“If this provision is enacted, it will seriously damage the financial services industry in Cayman and other OCTs, he said. “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.”

Bush has opposed this measure since it was initially introduced in the draft OAD.

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

Premier of Greenland, Mr. Kuupik Kleist, opened the meeting and welcomed all the delegates.

Items on the Agenda included the need to revise the eligibility criteria for territorial funding that currently excludes the Virgin Islands and Cayman Islands. The existing OAD, which gives OCTs free market access to the EU, will expire in 2013.

The theme of the meeting was “How cool is GREEN?”

The OCTs have since 1964 been associated with the European Union through certain Member States of the European Union (United Kingdom, France, the Netherlands and Denmark). Based on the EC Treaty the Council unanimously makes decision as to the legal arrangements applicable to the political association of the OCTs with the European Union. 

This Decision is commonly referred to as the Overseas Association Decision (OAD) or the OCT Decision. The Decision is primarily a trade regime which gives the OCTs free market access to the European Union. The intention of the decision is also to help to create economical and social prosperity in the territories.

The last OCT Decision from 2001 was supplemented with an amending decision on March 19, 2007. The amending decision was developed in order for the OCT decision to follow the fiscal frames of the EU running until 2013, including the European Development Fund (EDF 10) from which the OCTs benefit (except Greenland). With the 2007 amendment the OCTs furthermore got full access to the EU’s horizontal programmes.

You can download a copy of the COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL at the following link:

http://issuu.com/inewscayman/docs/comm_european_development_fund_en?mode=window&viewMode=singlePage&backgroundColor=%23222222

The complete News Release from the Office of the Premier “Premier Bush: Article 70 of EU Document Harmful to Financial Services” can be downloaded at the following link:

http://issuu.com/inewscayman/docs/oad_article_70_premier_calls_for_change-27_sep_201?mode=window&viewMode=singlePage&backgroundColor=%23222222