The Cayman Islands Monetary Authority has revoked the licence of RDI Company Ltd., whose directors are Robert and Joseph Imparato, for contravening the Companies Management Act.
Rob Imparato told the Compass the company had transferred its book of business and ceased trading last year.
RDI described its activities as real estate development, leasing and management; corporate administration and management; and marketing consultancy.
In an excerpt of a decision notice published on the regulator’s website, CIMA said the company had failed to appoint an independent director, which was required under its licence.
RDI had not paid its annual licence fee for 2022 and the company had not submitted audited financial statements for the period from 24 March 2017 to 31 Dec. 2018, as well as for 2019 and 2020.
CIMA stated that RDI had also not submitted certificates of compliance for the same periods and failed to abide by the authority’s requests for documentation and information.
This included a self-assessment questionnaire that was due in August 2018, active client listings, and Company Managers Bi-Annual Reports for the periods ending in December 2020, June 2021 and December 2021.
“Further, due to the non-submission of the Reports combined with the Company’s failure to file [audited financial statements], the Authority has been unable to assess the financial health of the Company and whether it is compliant or in breach of the prescribed net worth requirement pursuant to section 10(1) of the Act,” CIMA wrote in the decision that became effective on 25 March.
Asked by the Compass to comment on the regulator’s decision, Rob Imparato explained that maintaining a registered office for approximately 35 companies had become cost-prohibitive due to licensing fees, insurance premiums and audit costs.
“For this reason, I made the decision to transfer all of my business to a large-scale provider owned and operated by a local law firm. This was completed in mid-2021 following which The RDI Company ceased operations,” he said.
Imparato added that “this decision was communicated to CIMA”.
The regulator said the decision to revoke RDI’s companies management licence followed a warning notice that was issued to the company on 25 Feb. 2022.
CIMA stated that RDI appears likely to become unable to meet its obligations, failed to comply with the conditions of its licence and has contravened the Companies Management Act. In addition, “the direction and management of the Company’s business has not been conducted in a fit and proper manner,” the authority wrote.
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