November 25, 2020

Cayman Moves toward Enhanced Corporate Governance

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CIMA_WEB BANNER_PROOF3The Cayman Islands Government has voiced its support for a survey commissioned by the country’s regulator, which will provide industry input into legislative proposals, and regulatory standards and policies, that are intended to enhance corporate governance.

The survey complements the consultation with local industry associations and other interested stakeholders that the regulator, the Cayman Islands Monetary Authority (CIMA), began on 14 January.

‘We want investors to continue to have the greatest confidence in our jurisdiction, particularly in light of the rapid changes in global financial services’, said the Minister for Financial Services, the Hon. Rolston Anglin.

‘Cayman’s success is a strong indicator of our current regulatory soundness – certainly, smart investors prefer to conduct their business in a jurisdiction that provides market-appropriate levels of protection. So it makes sense for Government to support CIMA’s independent consultative efforts, because they reinforce our jurisdiction’s longstanding commitment to investors – specifically in this case, by moving toward greater transparency in our financial services industry’.

In preparing its proposals, CIMA has researched both local and international corporate governance practices, developments and standards. The survey is a key component of this research, acknowledged CIMA’s Managing Director Cindy Scotland.

‘It gives industry the opportunity to help shape, in a manner that retains our position as the leading jurisdiction for their formation, the mutual funds regulatory framework in the Cayman Islands’, she said.

Minister Anglin also noted that Government will soon pass regulations that will assist CIMA in gathering details on operators (in other words, directors, general partners or trustees) of Cayman Islands funds.

Upgrading the quality of information in CIMA’s operator database will factor into consultative discussions regarding a more substantive regulatory regime for corporate governance, he said.

The obligation will be on each CIMA registered, licensed or administered fund to ensure that each of its operators files ‘operator particulars’ with CIMA by 30 April 2013. A flat fee payable by each fund is envisioned, in order to offset CIMA’s costs of processing the operator particulars and for the enhancement of CIMA’s database.

Mrs Scotland said the regulations, and the consultative process on corporate governance, demonstrate the significance that Cayman places on its regulatory framework.

She encouraged stakeholders to complete the survey, which Ernst & Young will administer on CIMA’s behalf. For more details on the survey and to participate, visit CIMA’s website, www.cimoney.com.ky

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