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Act

Securities Investment Business Law (2020 Revision)

Cayman Islands Monetary Authority (CIMA) · Cayman Islands

In force

Status per the Cayman Islands legislation register (legislation.gov.ky) (as at 2026-07-09)

View on CIMA's website Source document

Current version last checked: 2026-07-05

Summary

This is the consolidated text of the Cayman Islands' Securities Investment Business Law (2020 Revision), the principal statute establishing the licensing and conduct-of-business regime for persons carrying on 'securities investment business' in or from the Cayman Islands. It defines core terms (securities, securities investment business, client, licensee, registered person, single family office, EU Connected Fund/Manager, sophisticated person, high net worth person, etc.) and sets out the framework administered by the Cayman Islands Monetary Authority (CIMA).

  • Licensing, registration and deregistration
  • Application requirements, fees and returns
  • Restrictions on share transfers
  • Use of restricted terminology
  • Segregation of client property
  • Accounting requirements
  • Director approval
  • CIMA's supervisory and enforcement powers, including cease-and-desist directions, injunctions, restitution/disgorgement orders, entry and search powers, and winding-up
  • Auditor duties
  • Offences relating to false or misleading markets and insider dealing

The law applies to persons and firms conducting securities investment business as defined in Schedule 2, including licensees, registered persons (per Schedule 4), broker members of the Cayman Islands Stock Exchange, market makers, EU Connected Managers/Funds and their depositaries. It carves out exclusions for single family offices and certain other categories under Schedule 3 (excluded activities) and Schedule 2A (non-registrable persons).

Because the excerpt provided consists mainly of the front matter, arrangement of sections, definitions, Schedule 4A (connected persons within a single family) and the endnotes/legislative history, the detailed operative obligations in sections 4 through 42 (e.g., precise licensing procedures, fee amounts, filing timeframes, and enforcement mechanics) are not fully reproduced here, limiting the precision with which specific deadlines or obligation wording can be confirmed from this text alone.

Key obligations

  • Persons carrying on securities investment business (unless excluded or exempt) must hold a licence granted by CIMA under section 5, or register with CIMA under section 5(4) if falling within Schedule 4.
  • Licensees must apply for a licence in accordance with the requirements of section 6.
  • Licensees must pay prescribed fees and file returns with CIMA as required under section 7.
  • Licensees must obtain CIMA's prior approval before shares in the licensee are issued or transferred (section 8).
  • Persons must not use words connoting securities investment business unless licensed or permitted (section 9).
  • Licensees must segregate client property from their own property (section 10).
  • Licensees must maintain accounts in accordance with section 13 and are subject to certain prohibitions under section 14.
  • Licensees must have directors approved by CIMA and comply with requirements on the number of directors (section 15).
  • Auditors of licensees have statutory duties to report certain matters to CIMA (section 19).
  • Licensees and other persons are subject to CIMA's enforcement powers, including directions to cease and desist, entry and search of premises, and injunctive/restitution orders (sections 4B, 16-18, 20).

Applies to

licensees carrying on securities investment business, registered persons, broker members of the Exchange, market makers, EU Connected Managers, EU Connected Funds and their depositaries, single family offices (excluded category)

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Version history

2026-07-05

source file (current)