Cayman Islands to Introduce New Directors Registration and Licensing Regime
The Cayman Islands government has announced, by way of a Gazette dated 21 March 2014, its intention to introduce a registration and licensing regime for directors of certain regulated entities in the Cayman Islands. This has been anticipated since the Cayman Islands Monetary Authority ("CIMA") conducted its industry wide corporate governance consultation in 2013.
At this time, the proposed new law has been published in the form of The Directors Registration and Licensing Bill, 2014 (the "Bill") and a short consultation period will now follow before the new law is enacted. The complete Bill can be reviewed here.
In summary, the proposed law if enacted in the form of the Bill will require all directors, whether resident in the Cayman Islands or non-resident, of (i) regulated mutual funds and (ii) companies which maintain a registration as an excluded person pursuant to the Securities Investment Business Law to register with CIMA. Persons who hold more than 20 of such directorships will need to be licensed by CIMA and will be subject to enhanced regulatory requirements. Corporate directors, irrespective of directorship numbers held, will also need to be licensed by CIMA.
Both registrants and licencees will need to pay a fee (amount to be determined) and will have three months from the date the new law is passed to complete their respective applications and be registered or licensed. The new law could be enacted as early as mid-April 2014.
A further detailed advisory will be issued on publication of the new law in final form following the consultation period.