Application Requirements for a Restricted Trust Licence under the Banks and Trust Companies Law (2018 Revision)

Summary

This document is a checklist published by CIMA setting out the information and supporting documents that must accompany an application for a Restricted Trust Licence under the Banks and Trust Companies Law (2018 Revision). It applies to any person or company seeking to be licensed in the Cayman Islands as a restricted trust company, and to the directors, shareholders, managers, controllers, settlors and auditors connected with that applicant.

The checklist covers the following areas:

• Corporate details: Registered office, agent, incorporation documents, memorandum and articles.
• Due diligence material: Personal questionnaires, character and financial references, police clearance certificates, and evidence of relevant experience for shareholders, directors, managers and controllers.
• Business plan: A detailed plan covering objectives, customer base, projected asset/liability/income statements, fee structure, and custody procedures for bearer shares.
• Regulatory confirmations: No-objection and consolidated supervision confirmations from home/parent regulators.
• Ownership information: Beneficial ownership and affiliate/subsidiary information.
• Financial statements: Audited financial statements where relevant.
• Capital requirements: Confirmation of minimum paid-up capital and net worth of CI$20,000.
• Auditor consent: An auditor's letter of consent.
• Fees: Payment of an application fee and annual fee.
• Undertakings: Signed undertakings from the applicant and directors as to accuracy of information and future disclosure of changes.

An appendix sets minimum standards for the three required reference letters (one financial, two character), including recency, independence and content requirements. The document is procedural/informational in nature (a form/checklist) rather than a standalone rule, but completing it accurately and completely is a precondition to obtaining a Restricted Trust Licence, and incomplete applications will be returned unprocessed.

Key obligations

• Applicants must submit all itemised information and documents listed (corporate details, business plan, ownership and management due diligence, financial confirmations, incorporation documents) to CIMA for a Restricted Trust Licence application.
• Applicants must provide personal questionnaires, two character references, police clearance certificates, financial references and evidence of experience for all proposed shareholders, managers, controllers and directors.
• Applicants must obtain and submit confirmation from parent Supervisory Authorities of no objection to licensing and confirmation of consolidated supervision, where applicable.
• Applicants must provide names/addresses/nationality of ultimate beneficial owners and any shareholder holding more than 5% of voting rights or issued share capital.
• Applicants must obtain confirmation from their auditors that paid-up capital and minimum net worth of CI$20,000 are maintained, supported by an opening balance sheet.
• Applicants must obtain a letter of consent from an Authority-approved auditor acknowledging obligations under the Banks and Trust Companies Law (2018 Revision).
• Applicants must pay an application fee of CI$2,000 and, upon approval, an annual fee of CI$7,000.
• The applicant and its directors must sign undertakings confirming the accuracy of information supplied and committing to notify CIMA of any changes to that information if a licence is granted.
• If the applicant conducts business regulated in another jurisdiction, it must submit confirmation of good standing, a letter of no objection from the relevant foreign regulator, and audited financial statements for the previous year.
• Reference letters (three per director, shareholder, manager or controller) must meet the minimum standards in the appendix, including being dated within six months of receipt of the application.
• Only complete applications should be submitted; incomplete applications will be returned to the sender.

Applies to

Restricted Trust Licence applicants, trust companies, directors, shareholders, managers and controllers of applicant companies, auditors of applicant companies

Deadlines

• within six months of receipt of the application: All reference letters (financial and character) submitted with director/shareholder/manager/controller applications must be dated within this period.
• upon receipt of approval for the issue of a Restricted Trust Licence: The annual fee of CI$7,000 becomes due.