Statement of Guidance - Responsibilities of Authorised Agents of Banks and Trust Companies

Summary

This is a CIMA Statement of Guidance setting out the responsibilities and minimum standards expected of Authorised Agents acting for banks and trust companies licensed in the Cayman Islands. An Authorised Agent is defined under the Banks and Trust Companies Law as two individuals or a body corporate, approved by CIMA and resident or incorporated in the Islands, who act as the licensee's agent. The guidance clarifies that the Authorised Agent is expected to be the principal point of contact between CIMA and the licensee from the time the licence is approved, and to assist the licensee in meeting its regulatory obligations.

The document lists a non-exhaustive set of specific responsibilities the Authorised Agent is expected to fulfil:

• Distributing legislation and guidance updates to the licensee
• Facilitating timely filing of prudential reports, financial statements and statistical returns
• Ensuring fees are remitted by statutory deadlines
• Seeking prior approval for changes in shareholders, directors, business plans, or principal office
• Promptly notifying CIMA of adverse operational changes, communication difficulties, or termination of the agency appointment

As guidance rather than binding law, it does not itself create new statutory obligations but sets CIMA's expectations for how Authorised Agents should perform their role, which licensees and their agents should factor into their contractual arrangements and compliance practices.

Key obligations

• Authorised Agent is expected to act as the principal contact between CIMA and the licensee from the time the licence is approved
• Authorised Agent is expected to assist the licensee in complying with applicable regulatory requirements and laws
• Authorised Agent must use best endeavours to ensure effective and efficient communication between the licensee and CIMA
• Provide the licensee with applicable legislation, regulations, rules, statements of guidance and statements of principle, plus timely updates on changes
• Facilitate timely submission of prudential reports, financial statements and statistical returns on behalf of the licensee, and seek necessary extensions
• Use best endeavours to ensure remittance of the licensee's applicable fees to CIMA by the statutory deadline
• Use best endeavours to ensure prior approval is sought for changes in shareholders/beneficial interest of the licensee, with post-notification for exemption holders
• Use best endeavours to ensure CIMA is notified of changes in directorships and that documents/fees are filed and prior approval obtained
• Immediately notify CIMA of any difficulty obtaining relevant regulatory information or communicating with licensees
• Assist with coordinating and attending meetings concerning the licensee with CIMA
• Use best endeavours to ensure timely notification and submission of documentation for surrender of licence
• Use best endeavours to ensure notification to CIMA of any change in a licensee's business plan
• Use best endeavours to ensure notification to CIMA of any adverse change in the licensee's operations
• Use best endeavours to ensure prior approval is sought for a change of principal office and notification for change of registered office
• Notify CIMA of termination or non-renewal of the Authorised Agent's appointment by the licensee

Applies to

Authorised Agents, banks, trust companies, licensees