Cabinet in the Cayman Islands approved updated drafting instructions to allow a moratorium on new LCC licences across trade categories if needed.
A Cabinet-approved update could soon change how new LCC licences are issued in the Cayman Islands, with officials building in the ability to pause them where authorities see fit.
The government has moved to prepare amended drafting instructions for the Local Companies (Control) Act, aiming to add a regulatory power that would allow a moratorium on the grant of licences for any trade or business category covered by the LCCL regime.. Misryoum reports the move follows momentum that was sparked in parliament in 2024.
In a statement to parliament on Friday, Premier André Ebanks said the LCCL framework, introduced in 1971, had once served a clear purpose, but conditions have shifted over time.. He pointed to the scale of licences in circulation at the end of 2025, noting LCCLs made up a small share of the overall licensing landscape while remaining concentrated in particular areas.
That focus, Ebanks said, is mainly in real estate and property development, which has implications for who can compete in those markets. In the same remarks, he referenced affordability and access concerns for Caymanians, saying the structure has created hurdles for smaller developers.
Insight: This kind of legislative adjustment matters because licensing rules can shape competition quickly, affecting who gets opportunities in sectors where demand and costs are most sensitive.
The premier noted that drafting had already been underway in response to a parliamentary motion calling for stronger Caymanian ownership requirements and a moratorium on LCCLs, particularly in the property sector.. However, he said the updated approach would not be limited only to the initial proposal.
Instead, the new draft will give Cabinet a general power to declare a moratorium on the grant of LCCLs across any trade or business category if it is considered necessary.. Ebanks framed the decision as a practical way to protect the legislative intent, while also preserving flexibility if other sectors are impacted.
In his remarks, he emphasized that the cabinet-level drafting step is meant to support broader reform and improve the administration’s ability to respond to changing economic conditions.. Misryoum reports he also argued that reforms should reflect the country’s evolving capacity and the wider experience of Caymanians.
He added that the time has come for updates across the business licensing regime, including additional legislative, policy, and procedural changes. The focus, according to Ebanks, will include practical short-term measures for micro and small businesses.
Insight: Beyond the specific moratorium mechanism, the broader signal here is that government wants licensing policy to keep pace with local capability, not remain tied to assumptions from decades ago.
Ebanks pointed to new five-year licences available to compliant businesses and said more measures are expected.. He concluded that the Cayman Islands now has enough qualified and experienced Caymanians to support a wider range of trade and business activity, and that the commerce legislation should be updated to reflect that reality.