In a move designed to include the Cayman Islands in a growing
international movement towards the enhancement of corporate
governance standards in the financial services market, the Cayman
Islands Monetary Authority ("CIMA")
commenced a private sector consultation on corporate governance in
The proposals being put forward are, broadly, as follows:
To extend the current Statement of Guidance (the
"SOG") issued by CIMA on corporate
governance, which currently applies only to licensees, to
registered entities, such as a typical hedge fund structure.
CIMA's objective is to make the SOG more generic and suitable
for cross-sectoral application and to reinforce fundamental
corporate governance standards by outlining key management
oversight and corporate governance principles, without imposing
compulsory rules or standards on the industry.
To develop a public database containing certain pertinent
information to complement the due diligence process for the
To simplify and provide clarification on the current legislative
framework for directorships provided under the Companies Management
Law and Mutual Funds Law and to implement greater consistency in
the regulation and supervision of directorship services.
To allow for assessment and approval of persons acting as
directors in a professional capacity by requiring persons or
entities who act as a director for six or more entities, and for
reward or profit, to obtain permission from CIMA to act or be
offered or provided as a director, irrespective of their
To implement a requirement for all directors of regulated
entities, who are not otherwise approved as a director of a
licensee or via the professional directors route discussed above,
to register with CIMA. Such registration will entail a proposed
director providing personal and contact details, information
regarding their role, the director's experience and knowledge
of the sector they will be overseeing, and information regarding
any previous or ongoing regulatory, legal or judicial enforcement
action against the director. Directors required to be registered
will have an ongoing obligation to inform CIMA of any changes to
the information provided.
To recommend various legislative changes to implement the above
CIMA has invited comments on the consultation by 18 March 2013
in order to provide it with a comprehensive assessment of industry
views on corporate governance. CIMA will then review the industry
views when finalizing the rules on the corporate governance
We are in the process of providing our comments and we would
welcome the opportunity to hear your views on CIMA's Corporate
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.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Many people are baffled by trusts, the purpose of which they don't fully comprehend. Some even regard them with suspicion, as tools of of opaque tax evasion strategies of a type favoured by wealthy individuals.
We were recently instructed by a Bank in relation to a regulatory matter. The Bank had made a suspicious activity report to the Financial Investigation Unit ("FIU") due to their concerns about the potential source of funds in an account.
Many of us will have heard the recent claim by Donald Trump in the US presidential election that, if elected, he will ensure that a 1,000 mile border wall is constructed between the US and Mexico...
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).