Procedure for Licence Applications (2021-06-28)

Summary

This is a CIMA Supervisory Information Circular that sets out general guidance for any entity applying for a licence to conduct regulated business in or from the Cayman Islands under CIMA's regulatory Acts. It does not create new licensing requirements but explains what CIMA expects to see in a complete application and reminds applicants that processing timelines only start once a complete application package is received.

The circular highlights four areas of particular importance in CIMA's review:

• Business plan: rationale, objectives, ownership, and corporate structure.
• Mind and management: fitness and propriety of directors/senior managers and transparency of legal, managerial and ownership structures.
• Financial resources: adequacy of capital and sources of funds/wealth, supported by financial statements or net worth statements.
• Internal systems, controls and risk management: policies, procedures and IT governance appropriate to the business.

It applies broadly across CIMA's supervisory divisions - banking, money services business, fiduciary services (trusts, restricted trusts, nominee trusts, companies management, corporate services), insurance, investments and securities - and points applicants to each division's specific licensing requirements, regulations and FAQs for detailed documentation lists and fees. The circular is informational/guidance in nature, supplementing rather than replacing the specific requirements of each regulatory Act, regulations and CIMA's Regulatory Handbook.

Key obligations

• Licence applications must be accompanied by the documents and information required under the applicable Act, relevant Regulations, Regulatory Policy or CIMA guidance, together with the prescribed fee.
• Applicants must submit complete documentation and the prescribed fee at the outset, as the processing timeframe does not begin until a complete application package is received.
• Applicants must demonstrate that they are managed by a sufficient number of fit and proper directors and senior managers, and that their legal, managerial and ownership structures are transparent and do not hinder effective supervision.
• Applicants must demonstrate adequate financial resources (actual or contingent) for the nature, scale and risk profile of the proposed business, supported by evidence such as net worth statements, audited financial statements or signed-off management accounts.
• Applicants must demonstrate they will have in place a comprehensive risk management process, internal controls and IT governance appropriate to the size, nature and complexity of their operations, supported by relevant policies, procedures and manuals.

Applies to

banks, money service businesses, trust companies, restricted trust licensees, nominee (trust) licensees, companies management licensees, corporate services providers, insurance companies (Class B and Class C), insurance brokers, agents and agencies, insurance managers, investment entities, securities businesses, applicants for a CIMA licence