Details of the Cayman Islands Monetary Authority’s operations for the financial year 1 July 2005 through 30 June 2006 and indicators of the financial sector’s performance during the same period are now available to the public.
The information is contained in CIMA’s Year in Review for 2005-06, which has been released on the Authority’s website, stated a press release.
The compilation outlines CIMA’s activities and accomplishments in carrying out its monetary, regulatory, cooperative and advisory functions, the four core functions the Authority has been mandated by law.
It includes an overview of industry trends and regulatory developments in the banking, fiduciary services, insurance, and investments and securities sectors.
The report records that during the 2005-06 fiscal year the number of active mutual funds regulated by the Authority grew by 20 per cent to 7,845 funds at 30 June. Captive insurance licences (held by entities writing non-domestic business only) increased four percent to 737 and Cayman experienced the largest net growth among all captive domiciles, with a net increase of 40 captives.
In the banking sector, while the total number of banking and trust licences declined by six percent (19 licensees) to 296, due mainly to continuing consolidations worldwide, the assets and liabilities of licensees continued to increase.
Total international assets booked through banks in the Cayman Islands stood at US$1,413 billion at 30 June this year, a 12 per cent increase over the same date last year. Liabilities at 30 June totalled US$1,373 billion, a 10 per cent increase over 30 June 2005.
The Authority collected a total of $54 million in licensing fees on behalf of the Government as at 30 June 2006, compared to $47 million for the previous fiscal year. Total income for 2005-06 was $17.5 million and expenses totalled $11.7 million, resulting in a net income of $5.8 million. This compares to a net income of $2.4 million for fiscal year 2004-05, when total income was $12.5 million and total expenses were $10.1 million.
CIMA’s efforts to address local consumer issues, particularly those that arose in the insurance sector in the aftermath of Hurricane Ivan, led to the development of a number of regulatory measures during the year.
The CIMA-private sector Insurance Law Working Group completed its review of the law and among its recommendations to the Cabinet were amendments to increase protection for policyholders of approved external insurers and to increase the accountability of unlicensed insurers and the brokers who represent them.
CIMA also developed a Statement of Guidance on Market Conduct for Class A Insurers and Agents to formalize standards that domestic insurers and agents should meet in dealing with the public, worked with the Cayman Islands Insurance Association on the development of a code for insurance brokers, and has been in discussion with representatives of the CI Bankers Association over the development of a code of market conduct for bankers.
Details of other statements of guidance and rules for insurance, and those for banking and fiduciary services are also provided, and initiatives such as the electronic reporting project for the Investments and Securities Division are covered.
The Year in Review notes CIMA’s cross-border assistance and involvement on regulatory issues, including the processing of over 100 requests for assistance from overseas regulatory authorities and the negotiation of memoranda of understanding and other information exchange agreements with authorities in Canada, Brazil and the USA.
The Authority’s performance against its 2005-06 strategic goals and work plan is outlined as well as its operational support and administrative activities.
Though completed and audited, CIMA’s financial statements for the period are not available to the public at this time. These will be published once they have been accepted by the Cabinet and laid on the table of the Legislative Assembly.
The Monetary Authority’s Year in Review can be accessed in the ‘Publications’ section of the CIMA website at www.cimoney.com.ky.