Changes to Business Plan (2021-09-16)

Summary

This is a Supervisory Information Circular issued by the Cayman Islands Monetary Authority (CIMA) reminding all licensees of their existing obligation to operate only within the scope of the business plan and activities approved as part of their licence application, and to obtain prior approval from CIMA before making changes to that plan or to the information originally supplied. It clarifies what counts as a 'change to a business plan' and how licensees should go about seeking approval.

A business plan covers matters such as the reasons for establishing operations in the Cayman Islands, short and long-term objectives, company/group history, beneficial owners, governing body, expected staffing, and corporate structure, as previously described in CIMA's 28 June 2021 circular on 'Procedures for Licence Applications'.

• Acquisitions, disposals or transfers: Acquisitions, disposals or transfers of business lines, product lines, asset portfolios and/or subsidiaries are generally treated as changes to a business plan requiring prior approval.
• Scope of changes to capture: Changes to both licensable and non-licensable activities must be captured when seeking approval.
• Stand-alone approval processes: Where a specific regulatory law requires a stand-alone approval process, a separate application must be filed.

CIMA may periodically ask licensees to provide an updated business plan and current list of directors, even where no material changes have occurred, in order to keep the Authority's records accurate and current. Licensees are directed to use the Change in Business Plan application form (BPC-023-99-02) via the REEFS portal, with an accompanying completion guide available online.

Key obligations

• Licensees must only carry on business/activities consistent with their approved licence application and business plan.
• Licensees must obtain prior written approval from CIMA before making any change to their approved business plan or to information supplied in their licence application, unless CIMA has agreed that only prior notification is required.
• Current licensees must seek CIMA's approval for any changes to their existing activities and/or business plans.
• Acquisitions, disposals or transfers of business lines, product lines, asset portfolios and/or subsidiaries must be treated as business plan changes requiring prior CIMA approval.
• Changes to both licensable and non-licensable activities must be included within the scope of a business plan change submission.
• Where an applicable regulatory Act requires a stand-alone approval, the licensee must file a separate application with CIMA.
• Licensees must submit changes to their business plan using the Change in Business Plan form (BPC-023-99-02) via the REEFS portal.
• Licensees must provide an updated business plan and current list of directors upon CIMA's periodic request, even absent significant changes.

Applies to

licensees