The Directors Registration and Licensing (Amendment) Law, 2015 (the "Amendment Law") came into force on 8 May, 2015 to amend and update specific sections of the Directors Registration and Licensing Law, 2014 (the "Law"), and in particular to clear up the ambiguity surrounding the terms of section 27(5) of the Law which deals with appeals against decisions of the Cayman Islands Monetary Authority (the "Authority") on the suspension or cancellation of registration, or the suspension or revocation of licenses, of directors of covered entities to the Grand Court of the Cayman Islands.
Section 27(5) of the Law purported to set out the appeal procedure to be followed by those directors of covered entities who were aggrieved by a decision of the Authority to suspend or cancel registration (in the case of registered or professional directors) or suspend or revoke a license (in the case of corporate directors).
The Law was ambiguous in this regard in that it only specifically provided for an appeal against such a decision to the Grand Court in circumstances where the license of a corporate director was revoked. It was therefore unclear as to whether there was any right of appeal against the decision of the Authority for those directors whose registration was cancelled or suspended, or in the case of corporate directors, whose license was suspended.
In repealing and substituting section 27(5), the Amendment Law is unequivocal in providing for a right of appeal against the decision of the Authority to cancel or suspend registration for a registered or professional director, as well as against the decision to revoke or suspend the license of a corporate director.
The Amendment Law has also added the Jersey Financial Service Commission ("JFSC") to the list of overseas regulatory authorities set out in the Schedule to the Law. This means that a director who is a director, employee, member, officer, partner or shareholder of a fund manager of a mutual fund regulated under the Mutual Funds Law (2013 Revision) which is registered or licensed by the JFSC, will not be required to be licensed as a professional director if that director acts as a director for the covered entity by virtue of his relationship to the fund manager and is registered pursuant to section 6 of the Law.
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