Re-registration as a Registered Person – Requirement for Two Directors (2019-08-20)

Summary

This is a 2019 general industry notice from CIMA's Securities Supervision Division addressing companies registered as "excluded persons" under the Securities Investment Business Law (SIBL) that need to re-register as "registered persons" following amendments to SIBL. It reiterates that such excluded persons must re-register by 15 January 2020 if they wish to continue carrying on securities investment business in or from the Cayman Islands.

The notice sets out a director-composition requirement for re-registration: a SIBL excluded person that is a company incorporated under the Companies Law must have either two individual directors, or one corporate director, each compliant with the Directors Registration and Licensing Law, 2014 (DRLL).

• Warning: The notice appears to have been sent to (or is illustrative of a template sent to) a registrant whose records show only one DRLL-registered/licensed individual director, warning that failure to appoint a second qualifying director by the 15 January 2020 deadline will result in refusal of the re-registration application.
• Action requested: The registrant is encouraged to submit a certified copy of its current Register of Directors evidencing appointment of a second qualifying director, ideally before or with its re-registration filing, by emailing it to CIMA's Securities Supervision Division.

Key obligations

• SIBL excluded persons that are companies must re-register as a "registered person" with CIMA by 15 January 2020 to continue carrying on securities investment business in or from the Cayman Islands.
• Such companies must maintain a minimum of either two individual directors or one corporate director, each compliant with the Directors Registration and Licensing Law, 2014 (DRLL).
• If a registrant has only one DRLL-registered/licensed individual director, it must appoint a second qualifying director by 15 January 2020, or its re-registration application will be refused.
• Registrants are encouraged to submit a certified copy of their current Register of Directors evidencing the second director's appointment to contactsecurities@cimoney.com.ky, in advance of or with the re-registration filing.

Applies to

SIBL excluded persons, registered persons, companies incorporated under the Companies Law

Deadlines

• 15 January 2020: Deadline for SIBL excluded persons to re-register as a "registered person" and, where applicable, to appoint a second DRLL-compliant director, failing which re-registration will be refused.