Government of the Cayman Islands takes place in a framework of a parliamentary representative democratic overseas territory, whereby the Premier is the head of government, and of a two-party system.Executive power is exercised by the government. Legislative power is vested in both the government and the Legislative Assembly. The Judiciary is independent of the executive and the legislature.
The Cayman Islands' physical isolation under early British colonial rule allowed the development of an indigenous set of administrative and legal traditions which were codified into a constitution in 1959. A constitution, which devolved some authority from the United Kingdom to the Cayman Islands government, was passed by referendum on 20 May 2009. Subsequently, the islands have become largely self-governing.
The Cayman Islands' government is aided by a tradition of restrained civil governance from the United Kingdom.
The Cabinet is appointed by the governor on advice of the premier. The British Crown appoints a governor, who is recruited from the UK Foreign & Commonwealth Office and serves as the British representative, including his role as the direct representative of Queen Elizabeth II. Daily administration of the islands is conducted by the Cabinet.
The deputy governor, and attorney general are appointed by the governor. Responsibility for defence and foreign affairs resides with the United Kingdom; however, the deputy governor handles the portfolio for External Affairs, and the Cayman Islands Government may negotiate certain bilateral matters directly with foreign governments.