Act
Securities Investment Business (Amendment) (No.2) Law, 2020
In forceView on CIMA's website Source document
Summary
This is a short Cayman Islands amendment law that updates the Securities Investment Business Law (2020 Revision) to reflect the introduction of limited liability partnerships (LLPs) as a recognised business form in the Cayman Islands.
- Definition of partnership: Broadens the statutory definition of "partnership" to expressly include Cayman LLPs formed under the Limited Liability Partnership Law, 2017, as well as foreign LLPs.
- Schedule 1 amendment: Amends Schedule 1 (which lists what counts as a "security") so that interests in a Cayman LLP, and interests in foreign LLPs, are now treated as securities.
The practical effect is that dealing in, arranging deals in, managing, or advising on interests in an LLP can now constitute "securities investment business" under the Law. This means firms that deal with LLP interests may need to consider whether they require a securities investment business licence or registration from CIMA, in the same way as for shares or partnership interests already covered by the Law.
The amendment itself is purely a legislative text change (definitions and schedule wording) and does not set out new filing, reporting, or notification procedures. It is tied to the commencement of a companion law, the Limited Liability Partnership (Amendment) (No.2) Law, 2020, and only takes effect once that law is in force.
Applies to
securities investment business licensees and registered persons, persons dealing in, arranging deals in, managing or advising on securities, limited liability partnerships formed under the Limited Liability Partnership Law, 2017, foreign limited liability partnerships and partnerships
Deadlines
- immediately after the Limited Liability Partnership (Amendment) (No.2) Law, 2020 comes into force: Commencement of this amendment law is tied to the coming into force of the Limited Liability Partnership (Amendment) (No.2) Law, 2020.
Related documents
- This document amends Securities Investment Business Law (2020 Revision)