Importance of a Comprehensive Crisis Management Framework and CIMA's Commitment to Implementation (2025-01-10)

Summary

This is a CIMA supervisory circular explaining why regulated entities in the Cayman Islands—particularly those considered systemically important—should have a robust crisis management framework in place, and setting out how CIMA intends to drive implementation of such frameworks across the financial industry. It is primarily informational and forward-looking rather than a set of immediate new rules.

The circular describes the objectives of a crisis management framework: protecting critical functions, mitigating systemic risk, maintaining stakeholder confidence, and enabling orderly resolution of distressed institutions.

• Stakeholder engagement: CIMA plans to engage stakeholders on the topic.
• Rules and guidance: CIMA will issue detailed rules and guidance on recovery and resolution planning.
• Regulatory coordination: CIMA will coordinate with domestic and international regulators.
• Ongoing supervision: CIMA will incorporate review of recovery and resolution plans into ongoing supervision.

Importantly, the circular signals that CIMA will issue a Rule and Statement of Guidance on Recovery and Resolution Planning for industry consultation during Q1 2025, which will set out the actual specific requirements for regulated entities. Until that Rule and SOG are issued, this circular itself does not impose concrete compliance obligations, deadlines, or filing requirements — it is a notice of intent and a preview of forthcoming binding guidance.

Applies to

regulated entities, systemically important entities

Deadlines

• first quarter of 2025: CIMA will issue a Rule and Statement of Guidance on Recovery and Resolution Planning for industry consultation