The Directors Registration and Licencing Law 2014 ('DRLL') is now in force, following Government's issuance of the relevant Regulations on 23 May 2014.
Application
The DRLL applies to all directors of:
- Mutual funds regulated under the Mutual Funds Law (2013 Revision) (the "MFL"), and
- Companies registered as 'excluded persons' under the Securities Investment Business Law (2011 Revision) (the "SIBL") (the "Covered Entities").
Licence versus Registration
All directors of Covered Entities will need either to
- Register with the Cayman Islands Monetary Authority ("CIMA"); or
- Apply to be licensed by CIMA where
- such director acts for 20 or more Covered Entities; or
- is a corporate director, subject to certain exceptions
CIMA Fees
- Registration of registered Director: Application fee + registration fee of US$854
- Licencing of Professional Directors: Application fee + US$3,659
- Licencing of Corporate Directors: Application fee + US$9,756
Deadline
Registered Directors or Professional Directors of existing Covered Entities are required to obtain their registration or licence from CIMA by no later than 3 September 2014.
A director of an existing Covered Entity must cease to act if the application is refused. An appeals process is available.
A Corporate Director of an existing Covered Entity has until 3 December 2014 to obtain its licence.
Any person who is not currently appointed to the board of a Covered Entity (or is the director of an entity which has not yet registered as a Covered Entity) must register or obtain a licence prior to the Covered Entity application being effected.
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.