Cayman’s Legal Services Act aims to ensure global oversight of attorneys

The new Legal Services Act will help ensure Cayman’s legal profession keeps up with international standards to maintain its reputation and competitiveness, the president of the Cayman Islands Legal Practitioners Association has said.

Richard Barton explained that the law and the regulatory environment had evolved substantially and that the way the profession was policed needed updating through the new Legal Services Act.

“The intention is to ensure that every legal practitioner operating within or outside the jurisdiction is subject to appropriate oversight, ethical obligations and professional accountability.” he said.

“It is important to emphasise that the Act primarily seeks to establish a clear, transparent and consistent regulatory framework that applies proportionally to all who practise Cayman Islands law.”

The Cayman Attorneys Regulation Authority, established in 2019, was replaced by the Legal Services Supervisory Authority as the money laundering watchdog under the legal services legislation, which also strengthened the regulatory regime.

It also introduced an “enshrined code of conduct” for the profession and mandatory continuing professional development for lawyers.

Barton, who is now serving in his second term as Legal Practitioners Association president, said the changes have been driven by several factors, including the increased complexity of legal services in Cayman and internationally.

He added that “heightened global expectations around anti-money laundering and counter-terrorist financing compliance played a key role.”

Barton said, “The Cayman Islands must demonstrate that its legal profession operates within a robust and modern regulatory regime, in which anti-money laundering compliance is a fundamental requirement to safeguard our reputation and enable continued access to international markets.”

He admitted that no regulatory framework was perfect or set in stone.

“The changes introduced were necessary and broadly reflect the direction in which the profession has been moving for many years – a trajectory on which it must continue to safeguard the integrity of our legal system,” Barton said.

Earlier this month, at the opening of the Grand Court for the new legal year, Barton said, “Above all, the full implementation of the Legal Services Act marks the most significant milestone, following the commencement of which, instantly reduced practising certificate fees by half and waived the need for operational licences for firms with under 15 practitioners.

“[The Cayman Islands Legal Practitioners Association] has already begun to engage leaders in the insurance sector to further assist with access to affordable professional indemnity insurance and will make this a key priority along with anti-money laundering sensitivity training in conjunction with the Legal Services Supervisory Authority over the next two years.”