HSM Corporate Services
Pursuant to the Anti-Money Laundering (“AML”) Regulations (2018 Revision) (the “Regulations”), all Cayman Islands investment funds are to designate a natural person to the roles of AML Compliance Officer (“AMLCO”), Money Laundering Reporting Officer (“MLRO”) and Deputy Money-Laundering reporting Officer Read more +
The Cayman Islands Ministry of Financial Services on 18 July 2018 released a draft Bill for discussion purposes relating to amendments to the Securities Investment Business Law (“SIBL”). The proposed Bill seeks to address: Deficiencies in the Cayman Islands regulatory Read more +
The HSM Group is enhancing its legal services with a new Head of Corporate & Commercial law. Mr. Peter De Vere. Peter joins HSM from another top-tier law firm in the Cayman Islands and specialises in all areas of Cayman Read more +
The HSM Group is proud to welcome Ms. Hilary Brooks to its growing practice. Ms. Brooks recently joined HSM and will be primarily focused on Corporate and Commercial law. She will also be practicing in the areas of property and Read more +
Five Things to Know: Proposed Updates to the Securities Investment Business Law
The Cayman Islands Ministry of Financial Services on 18 July 2018 released a draft Bill for discussion purposes relating to amendments to the Securities Investment Business Law (“SIBL”).
The proposed Bill seeks to address:
- Deficiencies in the Cayman Islands regulatory framework of Excluded Persons;
- Gaps highlighted in respect of the risks posed to the reputation of the Cayman Islands Monetary Authority (“CIMA”) and the country’s securities and investment business sector; and
- Areas for clarification in the SIBL that relate to Excluded Persons.
Here are five main items to be aware of:
- This Bill replaces the concept of an Excluded Person with two new classes of “Exempt Person” and a “Registered Person”.
- It will allow for a natural person (being a human being, as distinguished from a person who is a corporation, club, society, association or other body created by law) to apply for a SIB License.
- At present Excluded Persons are required to register with CIMA, pay an annual fee of CI$5,000.00 (US$6,096.00) and submit a renewal form along with the fee. No other filings are required of Excluded Persons under the SIBL beyond the possible Anti Money Laundering audit report. For the most part therefore, the current regime allows for Excluded Persons to police themselves. Exempt Persons will not be required to register with CIMA in the way that Excluded Persons are currently.
- Registered Persons will need to register with CIMA much in the same way Excluded Persons do currently however their annual renewal will need to be submitted on or before 15 January (not 31 January as is the case with Excluded Persons).
- Should the Bill become Law, CIMA will have the power to refuse the registration of a Registered Person or otherwise impose conditions on a registrant at the time of registration. CIMA will also have the ability to direct the Registered Person or Exempt Person in relation to the securities investment business it carries on and in particular to cease/refrain from certain acts or pursuing a certain course of conduct.