Securities Investment Business (Amendment and Validation) Act, 2024 (Act 21 of 2024)

Summary

This is a Cayman Islands Act that amends the Securities Investment Business Act (2020 Revision) to update fee arrangements and definitions for securities investment business licensees, and to validate certain fees CIMA had already collected without express statutory authority. It also retroactively legitimises the past charging and collection of fees for deregistration, filing of material changes, and grant of restricted licences, and confirms that any court orders already made about those historic fee charges are unaffected.

• New defined terms: The Act introduces new defined terms: broker-dealer, securities advisor, securities arranger, securities manager, restricted licence, operator, and virtual asset trading platform.
• Licence application requirements: It restructures licence application requirements so applicants must specify which category of licence they seek (broker-dealer, market maker, securities advisor, securities arranger, securities manager) and whether it is a restricted licence.
• Restricted licence limit increases: It creates a mechanism for restricted licence holders to apply to increase client number or investment value limits.
• Cabinet fee-setting power: It empowers the Cabinet to prescribe fees for deregistration, material change filings, and different licence categories.
• Virtual asset trading platform exemptions: It amends CIMA's powers so that CIMA must exempt operators of virtual-asset-only trading platforms from licensing/registration under this Act, and may exempt other persons whose activities are better supervised under, or already licensed under, the Virtual Asset (Service Providers) Act (2024 Revision).

The Act applies to persons carrying on securities investment business in or from the Cayman Islands, including current SIB licensees, registrants, applicants, and restricted licence holders, as well as operators of virtual asset trading platforms who may benefit from an exemption. The Act itself does not come into force on assent; it commences on a date to be appointed by Cabinet order, so its practical obligations only take effect once that commencement order is made (status of that order is not stated in this text).

Related documents

• This document amends Securities Investment Business Law (2020 Revision)
• Securities Investment Business (Amendment and Validation) Act, 2024 (Commencement) Order, 2024 (SL 58 of 2024) commences this document
• Securities Investment Business (Amendment and Validation) Act, 2024 (Commencement) Order, 2024 (SL 58 of 2024) is made under this document