Public Authorities Law (2020 Revision)

Summary

This is the Public Authorities Law (2020 Revision), a Cayman Islands statute that sets out uniform governance, financial management and personnel management rules for "public authorities" — defined as statutory authorities (bodies established by law that can be funded by Cabinet and whose board/governing body is appointed or dismissed by the Governor or Cabinet) and government companies (companies in which Government has a controlling interest, including subsidiaries). It is included on CIMA's acts and regulations list because CIMA itself is a statutory authority subject to this Law, but the Law is of general application across all Cayman Islands public authorities, not specific to CIMA's regulated financial industry.

• Board requirements: Each public authority must have a board of at least five members (a chairperson plus four others) appointed by Cabinet, with rules on board member terms, remuneration, conflicts of interest, meetings and minutes.
• Chief executive officer: Each authority must have a chief executive officer appointed through an advertised, interview-based process with Cabinet-approved terms.
• Financial management: Requirements cover the financial year, budget documents, capital charges, borrowing, investing, and compliance with generally accepted accounting practice.
• Personnel management: Requirements cover open and fair recruitment, conflict-of-interest disclosure for senior staff, adherence to Public Service Values and the Public Servant's Code of Conduct, and good-employer obligations.
• Oversight and compliance: The Law assigns oversight roles to Cabinet and Chief Officers, applies whistleblower protections, and empowers government units to audit and monitor a public authority's compliance with the Law.

The Law does not create obligations for privately regulated entities such as banks, trust companies or fund administrators; its obligations run to the public authorities themselves (their boards, CEOs and management) and to Cabinet/Chief Officers overseeing them. A transitional provision preserves more generous pre-existing terms of employment for CEOs and staff who were employed at the commencement of the original 2017 Law.

Key obligations

• Every public authority must have a board consisting of a chairperson and at least four other members, responsible for governance, general administration and oversight of the authority's affairs.
• Board members must be appointed by Cabinet, and all new board members must undertake an orientation session and training as soon as practicable after appointment.
• Cabinet must publish notice of board member appointments in the Gazette and must satisfy itself as to the appointee's skills, integrity and absence of conflicts of interest, including requiring full disclosure of interests.
• Every public authority must have a chief executive officer, appointed through an advertised, interview-based selection process, with terms, conditions and remuneration set in accordance with the Law.
• Public authorities must prepare budget documents and comply with generally accepted accounting practice in their financial management.
• A public authority must operate in a responsible financial manner, aiming to be profitable/efficient and at least break even.
• Recruitment and personnel management decisions must follow open and fair processes, and senior staff must disclose conflicts of interest.
• Public authorities must adhere to Public Service Values and the Public Servant's Code of Conduct, and observe good-employer obligations toward staff.
• Public authorities must accede to requests for information from a Ministry or Portfolio conducting a review, investigation or audit of the authority's financial management, personnel management or governance practices.
• The Whistleblower Protection Law, 2015 applies to matters arising under this Law.

Applies to

public authorities, statutory authorities, government companies