The Directors Registration and Licencing Law 2014 ('DRLL') is now in force, following Government's issuance of the relevant Regulations on 23 May 2014.
The DRLL applies to all directors of:
- Mutual funds regulated under the Mutual Funds Law (2013 Revision) (the "MFL"), and
- Companies registered as 'excluded persons' under the Securities Investment Business Law (2011 Revision) (the "SIBL") (the "Covered Entities").
Licence versus Registration
All directors of Covered Entities will need either to
- Register with the Cayman Islands Monetary Authority ("CIMA"); or
- Apply to be licensed by CIMA where
- such director acts for 20 or more Covered Entities; or
- is a corporate director, subject to certain exceptions
- Registration of registered Director: Application fee + registration fee of US$854
- Licencing of Professional Directors: Application fee + US$3,659
- Licencing of Corporate Directors: Application fee + US$9,756
Registered Directors or Professional Directors of existing Covered Entities are required to obtain their registration or licence from CIMA by no later than 3 September 2014.
A director of an existing Covered Entity must cease to act if the application is refused. An appeals process is available.
A Corporate Director of an existing Covered Entity has until 3 December 2014 to obtain its licence.
Any person who is not currently appointed to the board of a Covered Entity (or is the director of an entity which has not yet registered as a Covered Entity) must register or obtain a licence prior to the Covered Entity application being effected.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.