The Cayman Islands ('Cayman') Government has set out its proposals for new legislative measures to be introduced to the Cayman Legislative Assembly in 2018 and 2019. Here are some of the proposals which are likely to affect the Cayman financial services industry and those investing in Cayman developments.The Government has already started on this legislative program by publishing some new Laws and Regulations in the Cayman Islands Gazette in December 2017.
There are plans for a Private Funding of Litigation Bill to introduce statutory regulation of conditional fee agreements. A Contempt of Court Bill and amendments to the Penal Code will partially codify the law of contempt.
Land and development
Modernisation of the Registered Land Law is expected to mandate the registration of surveys after authentication. The regulatory framework for land surveyors is also to be modernised. There are plans for a Stamp Duty Law to make the regulations more effective and a Strata Titles Bill will reform the regulation of strata schemes. The Government's procurement structure, practices and policies will be strengthened with the Procurement Law brought into force and the introduction of Procurement Regulations. Building industry professionals in Cayman will also see a new Professional Registration Law to regulate and protect professionals in architecture, engineering and surveying from unfair overseas competition, alongside measures to improve consumer protection.
There are proposals to amend the Immigration Law and Regulations to improve efficiency, revenue collection, border control, and law enforcement. In particular amendments will support secure exchanges of customer information through interoperable data systems solutions as well as the creation of new business processes and a National Human Resource Department.
Companies and business organisation
The financial services industry in Cayman will see proposals for:
- Data Protection Regulations, 2018 to set out detailed requirements of the beneficial ownership regime;
- Companies Law changes to further enhance the competitiveness and attractiveness of Cayman companies;
- Giving the Cayman Islands Monetary Authority ('CIMA') supervisory powers in regulating those licenced under the Securities Investment Business Law;
- Regulatory changes to the Mutual Funds Law to ensure licensees under that Law, as appropriate, fall within the scope of the beneficial ownership regime;
- Monetary Authority (Administrative Fines) Regulations were brought into force in December 2015 at the same time as the Monetary Authority (Amendment) Law 2017 was brought into force. These will give CIMA the enhanced power to implement a proportionate and dissuasive administrative fines regime for its licencees;
- The Report of Savings Income Information (European Union) Law and Regulations will be repealed;
- Changes to the Accountants Law and Regulations to extend powers to the Cayman Islands Institute of Professional Advisers accountancy service providers and liquidators for AML/CFT supervisory purposes;
- Auditors Oversight Authority Regulations changes will establish an administrative sanctions regime for breaches of its rules;
- Amendments to the Tax Information Authority Law and Regulations will enforcement, compliance, and audit measures to meet Organisation for Economic Co-operation and Development's ('OECD') Common Reporting Standard and OECD Global Forum Peer Review Report, including Country-by-Country Reporting Regulations (already released) which establish a framework for sharing information under the provisions of the Transfer Pricing Documentation and Country-by-Country Reporting;
- Trusts Law changes to enhance the existing regime; and
- Amendments to improve the regulatory regimes under the Banks and Trust Companies Law, Private Trust Companies Regulations, Insurance Law and Regulations, Money Service Business Law, Non-Profit Organisations Law and Regulations.
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