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HSM Corporate Services

27/11/2023 | hsmoffice

Cayman Islands Government Publishes Beneficial Ownership Transparency Act, 2023

Following the recent removal of the Cayman Islands from the FATF grey list, the Cayman Islands has published the Beneficial Ownership Transparency Act, 2023 to better align the beneficial ownership regime more closely with the Cayman Islands’ anti-money laundering regulations. Read more +

06/09/2022 | hsmoffice

Action Needed for Cayman Companies that Own UK Property

As Russia’s invasion of the Ukraine continues, the United Kingdom has pushed its hunt for Russian Oligarch’s assets into high gear and has fast tracked the Economic Crime (Transparency and Enforcement) Act 2022 (the “Law”) into force. The Law was Read more +

08/08/2022 | hsmoffice

Year-end Company Dissolutions Update and Reminder 2022

As we draw closer to the end of 2022, many clients will be considering their Cayman Islands structures and querying whether any entities are surplus to requirements. HSM’s Head of Corporate and Commercial, Peter de Vere, covers the key points Read more +

30/07/2021 | hsmoffice

HSM Produces Updates to the Cayman Islands Economic Substance Regime

Most clients are now relatively familiar with the Cayman Islands Economic Substance regime requiring real economic substance for certain entities (known and ‘Relevant Entities’) carrying or certain activities (known as ‘Relevant Activities’). Our firm’s previous article on the introduction of 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:

  1. This Bill replaces the concept of an Excluded Person with two new classes of “Exempt Person” and a “Registered Person”.
  2. 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.
  3. 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.
  4. 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).
  5. 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.

For full details on this proposed Bill and classifications, download our client guide by Peter de Vere – Head of Corporate and Commercial at HSM.