Living and working in the Cayman Islands “You will be busy! But work life balance is much better” LIvING AND WOrkING IN The CAyMAN ISLANDS With taxes on the mainland stubbornly high and little sign of any real shift in the work-life balance at your average City law firm it should come as no surprise that many lawyers consider trading it in for the sunshine and tax-free riches of the Caribbean. But is it too good to be true? here we look at the attractions and potential drawbacks of a move to this small island with a big reputation … THE ISLAND The eCONOMy • Tourism and Finance • West Caribbean • Lack of direct taxation • 1 hour from Miami • high average earnings • World class location • Global hedge Fund capital • Stunning climate • Outdoor lifestyle Tourism and Finance are the twin pillars of the • Upmarket tourist destination Cayman economy and between them account for a large majority of the 90% plus of the employed Situated in the Western Caribbean, 480 miles south who work in the service sector. The finance sector of Miami, the archipelago is comprised of three has grown rapidly over the last thirty years but islands, Cayman Brac, Little Cayman, and around perhaps the most influential development came in 90 miles south west of them, Grand Cayman. Its the early 1990’s when it instituted a new Mutual Funds nearest neighbours are Cuba to the North, and law which – along with its favourable tax system – Jamaica, 167 miles away across the 18,000ft depths rapidly made Cayman the destination of choice of the Cayman Trough. Administered by Jamaica for offshore funds. Whilst much copied, Grand until that island’s independence, it is now a British Cayman retains its preeminent position in this market, Overseas Territory. registering its’ 10,000th fund in 2008. Its climate is a major attraction and with average Although the vast majority of goods are imported, temperatures ranging from the mid to high 20’s making the cost of living high, the lack of direct throughout the year it is easy to see why so many taxation combined with high average earnings place Brits and Canadians find it appealing. One word the Cayman Islands near the top of most ‘quality of of caution though, with its tropical climate comes life’ charts. By some way the wealthiest population the annual Atlantic hurricane season – something in the region, it enjoys a standard of living which is which needs to be taken seriously, but which the similar to Switzerland. islands have shown themselves to be extremely well equipped to deal with. Despite its size (22 miles long by 8 miles wide at its broadest point), Grand Cayman offers a multitude of ways to spend your free time. Much focus is rightly given to its water sports – it is after all a world class “Climate perfect to enjoy location for scuba diving and sailing – but it also offers numerous other sports facilities, as well as the bars, restaurants and nightlife you would associate a lovely outdoor lifestyle” with a major upmarket tourist destination. LIvING AND WOrkING IN The CAyMAN ISLANDS The LeGAL Sector The reCrUITMeNT MArkeT • Offshore legal sector • Funds • Prominent growth • Banking & Finance • World class firms • Corporate • Corporate, Finance and Disputes work • Commercial Litigation • Insolvency The leading Cayman law firms have been • Trusts prominent in the growth of the offshore legal sector and until recent years most observers would have Given the nature of the firms’ practices, the considered Maples and Calder and Walkers to be vacancies tend to come up in Funds, Banking the clear front runners in the sector globally. & Finance, Corporate, Commercial Litigation, Insolvency and Trusts. For work permit purposes Whilst this market has now become far more you will need to be qualified in a Commonwealth international – and far more crowded following a jurisdiction and will usually need at least three years’ spate of mergers and office openings – these two post-qualification experience. firms would still figure large on any survey of the offshore legal world. As the firms have matured there has been an increasing demand for more senior hires but still the Competition has come in the form of the other majority of roles will be aimed at those in the three ‘offshore magic circle’ firms, with the Bermudian to seven years’ pqe range. Those senior level hires powerhouses (Conyers Dill and Appleby) joining that do happen will typically be for candidates with the leading Channel Islands firms (Ogier, Mourant a particularly sought after skillset like funds, prior Ozannes and Carey Olsen) and BvI headquartered offshore experience, or a book of contacts that harneys, as the main challengers to the big two’s promises to deliver business. dominance. A track record in a good commercial firm will be Other key firms in the market include stand-out vital – these firms operate in the same international independent firm Campbells, as well as a number markets as the City and so the chances of moving of highly respected boutiques such as Travers Thorp to Cayman from somewhere that doesn’t have Alberga, Solomon harris, Forbes hare and ritch & a strong commercial focus are slim. Top-tier City Conolly. Watch out too for Collas Crill, a latecomer experience is valued (and indeed essential for a to the Caribbean but built on a merger with couple of firms), but there are opportunities for those longstanding and respected Cayman outfit Charles whose experience has been gained in a mid-tier Adams ritchie & Duckworth. City firm, a good regional/national practice or a leading international firm. Corporate and Finance work is the mainstay of the Cayman law firm, whether it be transactional Culturally, the firms tend to look for ‘down to earth’ matters or litigation. All of the firms have expertise people with strong communication skills. Team in the funds sector and the leading practices field players are highly valued and the ability to build funds teams that compare favourably to most relationships with potential clients over a drink in a onshore firms, both in numbers and quality of local bar or a round of golf is also at a premium. lawyers. A few locally trained lawyers occupy key One final point – they will want to know that you are roles but most firms are staffed by ex-pats from realistic about what to expect and any sense that the leading firms in the Uk, Australia, New Zealand, you are being seduced by the lifestyle and haven’t Canada and South Africa. thought about the job will set alarm bells ringing, so do your research. “Fast-paced, interesting and varied work” LIvING AND WOrkING IN The CAyMAN ISLANDS BeING A LAWyer IN The CAyMAN ISLANDS • International work the balance at all Cayman firms will compare quite • Cayman Law favourably to the big City firms but certainly in the • Good lifestyle leading practices, people work hard. • excellent salaries • Lucrative bonus schemes There are some very good lifestyle options available but if you are looking at the top of the market the Whilst Cayman is undoubtedly a world apart from firms will tend to mirror the City, although with none the City, the deals, the cases, and the clients are of the ‘jackets on chairs’ culture of being in the the same. As a Cayman lawyer you will frequently office to be seen to be in the office. Also factor be instructed by major onshore law firms, offering in that your journey home could be a ten minute opinions on sometimes very technical aspects of stroll along the harbour or drive along the coast – offshore law. The work is entirely international and particularly notable for anyone who commutes at whilst New york and London are still the lifeblood the moment. of the island, China, India, the Middle east, Latin America and russia are all strong sources of work. Salaries vary but the leading firms pay very well and even those moving from a top City firm will On a day to day basis there will of course be some almost certainly gain financially when you consider differences. you will be working on Cayman law that there is no direct taxation. Several firms also for starters, and whilst it is heavily based on english have lucrative bonus schemes that allow those who law there will be differences. you will also notice perform well to enhance their earnings. One word that the volume of matters you advise on increases of caution, the cost of living is high as all goods are dramatically whilst the elements of the matter that imported so that will offset some of your tax-gain, concern you shrink. but in general, if joining a larger firm, this should be a good move for you financially. On the plus side, you can expect to spend less time on the heavyweight documentation than you would do onshore, but you will need to be confident juggling a number of demands, and the ability to think on your feet will be priceless. you will also need “There are excellent to be comfortable (usually) taking a somewhat more peripheral role on the deal/case rather than professional being at the core of it, although for most associates this is offset by the fact that their personal level of responsibility increases. opportunities If work-life balance is a key driver of your move, think on the island” carefully about which firms you look at. In reality LIvING AND WOrkING IN The CAyMAN ISLANDS Qualifications Education Assuming that you meet the criteria set out above, Cayman education is widely considered to be gaining admission in the Cayman Islands should be excellent at primary and middle school levels.