Securities Investment Business (Amendment) Act, 2023 (Act 6 of 2023)

Summary

This Act amends the Securities Investment Business Act (2020 Revision) to broaden the categories of persons who can be held criminally liable when an offence under the Act is committed by an entity that is not a body corporate. It relabels section 2 as "Interpretation" and expands section 37 (previously headed "Offences by corporations") to cover partnerships, exempted limited partnerships, limited liability partnerships, and other unincorporated associations.

Under the new subsections (3) and (4) added to section 37, where an offence under the Securities Investment Business Act is committed by a partnership, limited liability partnership or exempted limited partnership, and the offence was committed with the consent or connivance of, or is attributable to the neglect of, a partner concerned in management or control (or, for an exempted limited partnership, a partner taking part in the conduct of its business), that partner personally commits the offence alongside the entity and can be prosecuted and punished. A parallel rule applies to persons concerned in the management or control of other unincorporated associations.

This is a liability-extension amendment rather than a provision creating new filing, reporting, or procedural duties for licensees. It effectively increases personal exposure for partners and managers of unincorporated business structures conducting securities investment business in the Cayman Islands, aligning their liability treatment with that already applicable to directors and officers of corporate licensees under section 37.

Applies to

securities investment business licensees, partnerships, exempted limited partnerships, limited liability partnerships, unincorporated associations, partners and persons concerned in management or control of such entities

Related documents

• This document amends Securities Investment Business Law (2020 Revision)