Recognised Overseas Regulatory Authorities - Securities Investment Business Law

Summary

This is a CIMA regulatory policy dated May 2016 that explains how the Cayman Islands Monetary Authority decides which overseas securities regulators qualify as "recognised overseas regulatory authorities" under the Securities Investment Business Law (SIBL). It sets out the criteria CIMA uses to grant, and potentially withdraw, this recognised status, which matters because SIBL relies on the concept of recognised overseas regulators for certain purposes (such as mutual recognition or reliance on foreign regulatory oversight).

• Automatic qualification: An overseas regulator automatically qualifies if it is a signatory to IOSCO's Multilateral Memorandum of Understanding, or an ordinary IOSCO member with which CIMA has its own bilateral MOU.
• Case-by-case recognition: Any other overseas regulator can be considered for recognition if an interested party requests it and demonstrates that the regulator operates in line with IOSCO principles, has an MOU with CIMA, and that recognition would not be contrary to the public interest.
• Decision and publication: CIMA's Management Committee decides such requests, and any newly recognised (or de-recognised) authority is published in the Gazette and on CIMA's website.
• Refusal or withdrawal: CIMA reserves discretion to refuse or withdraw recognition of an overseas regulator where continued recognition would not be in the public interest, giving the example of a regulator based in a jurisdiction subject to international sanctions.

This document is primarily an internal/administrative policy describing CIMA's own decision-making criteria rather than imposing ongoing compliance duties on licensees, though it does affect how SIBL licensees or applicants might rely on foreign regulator status in dealings with CIMA.

Key obligations

• A party requesting that CIMA recognise an overseas regulatory authority that does not already meet the automatic IOSCO-based criteria must submit supporting documentation demonstrating the authority operates in accordance with IOSCO principles, that an MOU exists between that authority and CIMA, and that recognition is not contrary to the public interest.

Applies to

overseas regulatory authorities, securities investment business licensees/applicants under SIBL