Cayman Islands to introduce new regime for registration and licensing of Directors

The Cayman Islands Government has published a new Bill that will require all directors, whether Cayman Islands resident or non-resident, of “Covered Entities” to register with the Cayman Islands Monetary Authority (“CIMA”). Covered Entities are: (i) mutual funds regulated by CIMA and (ii) companies which maintain a registration as an Excluded Person under the Securities Investment Business Law (e.g. investment managers and investment advisors). In addition to registration there will also be a licensing regime. The proposal is that a “Professional Director” (that is, a natural person who holds twenty (20) or more of directorships of Covered Entities will need to be licensed by CIMA and will be subject to enhanced regulatory requirements. Corporate directors of Covered Entities, irrespective of directorship numbers held, will also need to be licensed by CIMA.

A copy of the Directors Registration and Licensing Bill, 2014 can be viewed here.

A detailed briefing note will be issued on introduction of the new Directors Registration and Licensing Law.

For further information, please contact:
Gary Smith
+1 345 749 7590
gary.smith@loebsmith.com