The Cayman Islands Government published a bill on 21 March 2014 to announce its intention to introduce a registration and licensing regime for directors of certain regulated entities in the Cayman Islands.
The proposed bill is the Directors Registration and Licensing Bill, 2014 (Bill). The initial consultation period closed on 31 March 2014 and members of various industry bodies in the Cayman Islands have submitted initial comments on the Bill. The nature and extent of comments already made by practitioners and other stakeholders in response to this consultation will likely result in a number of changes to the text of the Bill and the scope of the registration regime.
You can download full text of the proposed Bill here: DOWNLOAD.
The new regime will require all directors of regulated mutual funds (ie funds registered with or licensed by the Cayman Islands Monetary Authority (CIMA)) and companies which maintain a registration as an excluded person pursuant to the Securities Investment Business Law (Covered Entities), to register with CIMA. This will apply regardless of whether or not they are resident in the Cayman Islands and whether or not they consider themselves executive or non-executive directors. Additionally, anyone who is a director for 20 or more Covered Entities will have to be licensed and will be subject to greater regulatory requirements. Companies which act as directors of Covered Entities ('corporate directors'), regardless of numbers, will need to be licensed.
There will be a registration fee payable by all directors and a licence fee payable by licensees (both are yet to be determined) and the relevant application must be made within three months from the date on which the new law is in force.
It is expected that registration will be by way of an online portal on CIMA's website, while the licensing process will require a formal application.
A further, more detailed eAlert, will be issued when the final Bill and associated regulations and application processes are known.
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.