Cayman moves toward enhanced corporate governance

The Cayman Islands government has voiced its support for a survey commissioned by the territory’s regulator, which will provide industry input into legislative proposals as well as 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, began on 14 January.

In preparing its proposals, the monetary authority has researched both local and international corporate governance practices, developments and standards. The survey is a key component of this research, said Cindy Scotland, managing director of the Cayman Islands Monetary Authority.

Rolston Anglin, Cabinet minister with responsibility for financial services, said government will soon pass regulations that will assist the monetary authority in gathering details on operators – namely directors, general partners and 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 registered, licensed or administered fund to ensure that each of its operators files “operator particulars” with the monetary authority by 30 April. 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 the authority’s database.

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


For more details on the survey and to participate, visit CIMA’s website at www.cimoney.com.ky

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  1. May I suggest that the Monetary Authority introduce a Regulation for the appointment of Directors of Cayman companies, and especially those which are licensed by CIMA that, in future, a Letter of Consent be obtained from the nominee, agreeing to his/her appointment, in addition to any other mandatory Due Diligence documentation. This has been a requirement in other offshore jurisdictions for many years.
    For companies which presently have only a Registered Office,, would it not also be sensible to demand that they have at least one resident Cayman director – I believe Bahamas has had this in their Companies Law for some time.

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