One of Britain's few remaining Caribbean dependencies, the Cayman Islands hosts a sophisticated financial services arena that will surprise many enterprising accountants, says CALUM ROBSON.
Originally published in Pass, June 2007.
The world's fifth-largest financial services centre, the Cayman Islands has come a long way since turtling was the mainstay of its economy.
Today, the islands are home to over 600 international banks - including nearly all the top 50 - as well as more than 500 insurance companies and some 2000 investment funds (only London, New York, Hong Kong and Tokyo boast larger numbers). Its population of 50,000 includes a sizeable professional community of auditors, tax consultants, finance managers and analysts, making it a popular destination for British-trained accountants looking for an international career move.
The islands may have provided a safe haven for Carlos Solis's dodgy bank account in Desperate Housewives - but the reality is that the territory enjoys an impressive global reputation for its tight regulatory and compliance regime. Accountants with experience of working there subsequently find themselves in demand the world over.
And while hunting turtles has long been outlawed, there are a host of less bloodthirsty activities on which to spend that tax-free salary and take full advantage of the Caribbean climate and lifestyle.
A waiting game
Those aspiring to join the big names in banking and insurance on the islands will probably have to cut their teeth in accounting practice first - but after a couple of years, their skills will be highly sought-after in the City's sunniest colony: 'Insurance, fund management and investment management companies like to hire people who have experience within the local auditing market,' says John Frazer, business manager for Think Global Recruitment . 'Many people completing contracts with the Big 4 or smaller firms find that they're not ready to move away from the islands - and therefore provide a steady supply of recruits for financial services employers here. About 90 per cent of the roles recruited internationally are into practice, but the job market for people with two years post-qualification experience is extremely fluid and diverse.'
Although there are openings within tax, many of the financial companies in the Caymans are US-owned, making knowledge of American tax laws a common requirement. But specialisation is still very much a possibility in audit - with most firms grouping their staff into distinct teams specialising in hedge funds or insurance, as well as structured finance, where clients might include commercial banks and real estate companies.
Where accounting firms in the Caymans differ from their UK counterparts is in how specialist work is often incorporated into more mainstream workloads. 'People tend to be drawn from the audit pool into areas such as corporate finance and insolvency,' explains Frazer. 'Because the firms may only have 200-250 staff in their office, they don't have large departments outside audit. They'd typically have a few senior people with strong knowledge in those areas and resource themselves from the audit group to service client needs. So, although your job title may be audit senior, you might actually spend 25-30 per cent of your time on specialist projects.'
Relaxed and sociable
Helena McGrath recently joined a Big 4 firm in George Town , the capital, believing it would enhance her cv: 'I always wanted to travel but preferred the option to work abroad rather than just be a tourist,' she says. 'For future career development, international experience is viewed positively by prospective employers. I chose the Cayman Islands for the lifestyle and climate.
'And as I'd anticipated, it's a relaxed work and social environment. Your work schedule is busy but the office atmosphere is relaxed and helpful. The proximity of the Cayman Islands to the US and South America is also ideal for travel.'
However, not everyone is presented with the same optimistic picture when investigating a move to the Caymans. Skill shortages in the UK mean employers desperate to hang onto their staff may sew seeds of doubt - and not always with the best of intentions.
'People working in UK firms may hear their partners telling them that a move to the Caymans will put their career on hold - and that their experience won't be well-regarded when they return or move elsewhere,' says Frazer. 'But that's untrue - we've placed a number of people back in the UK and overseas whose stint out here has been the critical factor in securing excellent offers.' (See case studies, below.)
Another common misconception is that those qualifying from small firms will have difficulty generating interest from the Big 4 - yet this often results from hearing about the experience of older colleagues who were unsuccessful trying to break into the Big 4 in the UK. The Cayman environment is far more welcoming and accessible: 'If you have a mixed skill set to bring out and can lend a hand in areas such as corporate recovery and restructuring when required, besides conducting audits, you're likely to make a good fit,' says Frazer. 'The offices are smaller and there's more of a personal touch to the workplace - it's a good route for someone who previously thought the Big 4 would be out of reach.'
Scary but exciting
Helena McGrath made her own move from a disability charity in Galway, demonstrating the diversity of backgrounds one is likely to meet on the islands: 'I've met so many amazing people from all over the world. I sit next to a guy from Zimbabwe and we've become the best of friends, even though we're an unlikely pair. You learn and experience so many different cultures, despite it being a small population - and I feel a great sense of achievement for moving here alone and making a success of it. It's scary as well as exciting - but more than worth the risk. I thought it would take months to settle in but it was only a matter of weeks.
'And it's so beautiful - I expected George Town to be bigger and more developed but I like its quaint charm, and the beaches are postcard-perfect.'
Although the Caymans reputedly enjoy the highest standard of living in the Caribbean, the cost of living is reasonable, salaries are on a par with London and - even better - there's no income tax: 'Coming from the UK, you'd get a step up in earnings if you'd been living outside London,' explains Frazer. 'Newly qualifieds would be looking at US$57-60,000 tax free, with accommodation at around US$12-1500 a month.
'But the work-life balance is fantastic - there's virtually no commute, so that stressful hour or more you'd spend going to and from work is spent much more productively. It's not a holiday but you can easily schedule a social life around your work and you can organise excellent trips from here. I've actually had candidates tell me they'd worry about missing the British seasons - but there must be something about snorkelling in the sea after work in January that changes that mindset.'
Helena McGrath agrees: 'I'm much more active now - I've started to play Gaelic football and volleyball, and I'm learning to sail. I walk on the beach three times a week and my work day flies by because I'm so happy here.'
Moving on, moving up
Frazer maintains that moving into financial services isn't a life sentence - and that having made the move to the islands in the first place will ramp up candidates' future marketability: 'It demonstrates that you're flexible and can apply yourself in a different market,' he says. 'There's also the fact that you're likely to emerge with a strong understanding of US GAAP. US companies with British subsidiaries are well aware that knowledge of US GAAP isn't great in the UK - so that's a strength you'd bring back with you.
'Also, businesses in the Caymans work as closely with New York as they do with London - and most people coming out here will have the chance to build up a decent network of contacts in both cities. Candidates moving off the islands are often faced with a choice of options on both sides of the Atlantic.'
Candidates joining accounting practices in the Caymans are typically put on two-year contracts - but surveys carried out by Think Global and the firms themselves indicate that as many as 80 per cent choose to stay: 'They see their careers going in the right direction, they're earning a tax-free salary - which becomes financially more significant as they progress through the ranks - so they tend to stay longer, about five years,' says Frazer. 'At the end of the first two years, around 20 per cent will continue in audit but the remainder will take up those positions in hedge funds or insurance, as they have the local experience those companies really strive for.'
Helena McGrath is in no doubt about the shrewdness of her move: 'If you're thinking about it, then stop thinking about it and just do it,' she advises. 'You'll never look back. For me, it's been and remains a positive move and I love my new life.'
Case Study: Candidate A
'The fact that he'd taken himself out of his comfort zone was seen as a big plus,' says John Frazer. 'His new position is well ahead of the peers he trained with. He'd lived away from home before, so they knew he'd understand what to expect. The experience you get from an international move is often under-valued by candidates - but it's incredibly well-regarded.' Source: Think Global Recruitment |
Case Study: Candidate B
'Spending time in financial services doesn't rule out a move back to industry or commerce,' says John Frazer. 'The client we placed him with could see the value of someone who knew about investment products as well as manufacturing processes - and who could pool those skill sets together.' Source: Think Global Recruitment |
