New Regulatory Measures (2019-04-10)

Summary

This is a short notice from the Cayman Islands Monetary Authority (CIMA) announcing that several new regulatory measures were published in the Cayman Islands Gazette on 4 March 2019 and have now taken effect. The notice does not reproduce the substantive content of these measures but simply lists them and states their commencement dates, directing readers to the underlying instruments for details.

• Succession Planning: A Statement of Guidance on Succession Planning, applicable to all licensees.
• Market Conduct (TCSPs): A Statement of Guidance on Market Conduct for Trust and Corporate Service Providers.
• Recruitment and Selection (TCSPs): A Statement of Guidance on Recruitment and Selection of Employees for Trust and Corporate Service Providers.
• Leverage for Banks: A Rule and Guideline on Leverage for Banks.
• Fitness and Propriety: A Regulatory Policy and Regulatory Procedure on Fitness and Propriety Personal Questionnaire and Declaration of Source of Wealth & Source of Funds.

All of the measures are stated to be already in force as of the Gazette publication date, except the Rule and Guideline on Leverage for Banks, which has a later commencement date of 1 December. Compliance officers at CIMA-regulated banks, trust and corporate service providers, and other licensees should locate and review the full text of each referenced instrument to determine specific compliance requirements, as this notice itself only confirms their existence and effective dates rather than detailing obligations.

Key obligations

• All licensees must have regard to and comply with the Statement of Guidance on Succession Planning.
• Trust and Corporate Service Providers must comply with the Statement of Guidance on Market Conduct for Trust and Corporate Service Providers.
• Trust and Corporate Service Providers must comply with the Statement of Guidance on Recruitment and Selection of Employees.
• Banks must comply with the Rule and Guideline on Leverage for Banks once it comes into force.
• Licensees must comply with the Regulatory Policy and Regulatory Procedure on Fitness and Propriety, including completing the Personal Questionnaire and Declaration of Source of Wealth & Source of Funds where applicable.

Applies to

all licensees, banks, trust and corporate service providers

Deadlines

• 4 March 2019: Date the new regulatory measures were published in the Gazette and, except as noted, came into force.
• 1 December: Date on which the Rule and Guideline on Leverage for Banks comes into force.