Initiates consultation on draft guidelines
The Cayman Islands Monetary Authority Chairman Timothy Ridley welcomed newly appointed director Mr. Bryan Bothwell at his first Board meeting on 12 April, saying he was delighted Mr. Bothwell had agreed to join the Board.
Mr. Ridley noted Mr. Bothwell’s more than 40 years experience and expertise in the financial industry, as well as his ‘capacity for hard work,’ that CIMA would be drawing on. Mr. Ridley also recorded the Board’s appreciation to outgoing directors Ms. Letitia Solomon and Senator James Kelleher, whose three-year terms ended in March. He praised their dedicated service to the Authority and wished them success for the future.
The CIMA Board addressed a broad range of matters during two days of full-board and sub-committee meetings on 11-13 April, stated a press release.
These ranged from Rules and Statements of Guidance to changes in board membership, international cooperative and best-practice initiatives, and internal operational matters.
The financial sector will shortly be given the opportunity to comment on proposed SOG’s and Rules developed by CIMA, the release said.
The Board of Directors approved 10 of these for circulation to industry as part of CIMA’s mandatory consultation process.
The amended SOG on market conduct for Class A insurers and agents is in line with recommendations of the Review of Domestic Insurance Industry Post Ivan and revisions to the International Association of Insurance Supervisors Core Principles and Methodology. It aims to enhance the conduct of insurers and their agents.
For banks, proposed new rules cover risk management and loan loss provision to support existing SOG’s, and a new rule and revised SOG cover large exposure and credit risk concentration.These are designed to ensure licensed banks have adequate policies and procedures in place to manage the risks inherent in their day-to-day operations, the release said.
There is also a new SOG on internal audit for unrestricted trust companies. This aims to provide specific guidance and a standard of best practice on the internal audit function.
The Board approved the submission to Cabinet of an SOG on credit risk asset classification, which has already passed the consultation process. It also gave the green light to the revised and updated Regulatory Handbook, which will be placed on the CIMA website shortly.
The directors were updated on determining the best options for the Cayman Islands implementation of the revised Basel II Capital Accord. The terms of reference for an impact assessment have been approved, and CIMA is requesting proposals to carry out the study.
CIMA’s application for membership in the International Organization of Securities Commissions is still active. The Board noted the positive ongoing discussions between the CIMA/Government negotiating team and IOSCO, and thanked the participants for their continuing hard work. Directors said they looked forward to a positive outcome for CIMA and Cayman.
The Board also noted that the money laundering Guidance Notes Committee, comprising representatives from industry, Government and the Authority, would convene shortly to review the Guidance Notes on the Prevention and Detection of Money Laundering. The goal is to achieve a more efficient and flexible risk-based approach, in line with that also being developed in other key jurisdictions, the release said.