Most Read Contributor in Cayman Islands, September 2016
The Ministry of Financial Services, Commerce and Environment had
four bills – one involving changes to the Monetary Authority
Law, two regarding regulations for mutual funds, and one relating
to the filing of company directors and officers – that
recently were debated and passed in the Legislative Assembly
Financial Services Minister Wayne Panton said the legislation
will bolster Cayman's reputation as a premier international
'These amendments aim to affirm our position as a premier
centre for global financial services and a global leader in
international investment funds, and we intend to build on our
market dominance, particularly with our new AIFMD regime', he
Both The Securities Investment Business (Amendment) Bill 2015
and The Mutual Funds (Amendment) Bill 2015 are designed to
establish an opt-in regime for regulating Cayman Islands-domiciled
investment funds and managers connected to the European Union
This is intended to facilitate the extension of the EU's
Alternative Investment Fund Managers Directive (AIFMD) passport to
the Cayman Islands. The passport would allow Cayman-based funds to
be marketed across the EU and eliminate reliance on private
placement in each EU member state through the National Private
Placement Regime (NPPR), which may no longer exist after 2018.
Although much of Cayman's investment funds business stems
from the US, a significant element is EU-connected and uses the
NPPR. Cayman's new AIFMD regime is designed to provide a future
pathway between Cayman Islands-domiciled investment funds and
managers, and the EU, with the intention of maintaining
Cayman's leadership, and further growing its share, of the
global mutual funds sector.
The Companies (Amendment) Bill 2015 calls for modest amendments
to existing legislation in order to extend the deadline for filing
changes to a company's register of directors and officers and
establish a maximum penalty for failing to meet that obligation.
This is intended to provide greater certainty with respect to the
penalty regime, and thereby promote greater compliance.
Furthermore, the Bill alters sections 55 and 56 of the current
Companies Law (2013 Revision) to require companies to provide the
Cayman Islands General Registry with a register of directors and
officers within 60 days of the first appointment of any director or
In addition, companies have to notify General Registry of
changes in the information contained in the register within 60 days
of the change. Breaches to such requirements result in a CI$500
The Monetary Authority (Amendment) Bill 2015 transfers the
responsibility for certain functions related to the Currency Board
from the Financial Secretary to the Financial Services Minister and
the Finance Minister, based on the creation of the Financial
Services Ministry in the 2009 Cayman Islands Constitution.
In addition, important changes were made in the Bill to replace
references to the 'Governor in Cabinet' with
'Cabinet', reflecting the fact that the Constitution gives
greater powers for elected members of Cabinet to set policy on
behalf of the country.
The four bills were passed on 12 August, during the LA's
second meeting of the 2015/16 session, and they are expected to be
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On the 9 September 2016 the MFSA issued feedback to its consultation of the 1 April 2016 in relation to intra-group loans.
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