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
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:
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
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.
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