CF_Mag_2015_web-V2

32 Cayman. Moving finance forward.
EU countries and the Monetary
Authority Law was amended
in March 2013, to give CIMA
additional powers to provide
assistance to EU regulators pursuant
to AIFMD requirements.
CIMA is looking at the suitability
of the current regulatory framework
in light of the potential extension
of the passport regime to third
countries (countries outside the
EU – including Cayman) by the
European Union during the course
of 2015. In August 2014, the
Authority’s board commissioned
the establishment of a working
group to examine how the
regulatory framework for funds
and fund managers can be adapted
to meet the needs of funds that
would like to market their units
in the European Union under a
potential passporting regime. The
working group met in December
2014 through February 2015 and
examined potential amendments
to the Mutual Funds Law and
the Securities Investments Business
Law, including the creation of
new regulations.
In January 2015, CIMA issued
two surveys to solicit the views of
the financial services industry on
matters relating to the AIFMD. One
survey was intended to determine
the needs and views of industry
relating to the impact of the
delegation provisions of the AIFMD
on the Cayman Islands funds
industry. This feedback will help
CIMA to assess whether there is a
The Cayman Islands is
the second largest captive
insurance jurisdiction in
the world.
need to strengthen the regime for
fund managers that are delegates of
European Union managers.
The other survey looked at
depositaries and managers. The
AIFMD requires a fund manager to
appoint a depositary for each fund
it manages. There is currently no
regulatory regime for depositaries
in the Cayman Islands, and any
such regime implemented in
the jurisdiction must meet the
requirements for depositaries
contained in the AIFMD.
Conclusion
CIMA is committed to playing
its part in helping to ensure the
continued success of the Cayman
Islands financial services industry. A
significant development in the first
part of 2015 was the establishment
of a dedicated Onsite Inspection
Unit. This Unit is focussing
primarily on high-risk entities
and developing best practices and
standards for onsite inspections
across all regulatory divisions.
Another component of CIMA’s
role is continued enhancement of
our processes to make it easier
for industry stakeholders to do
business, primarily through the use
of technology. CIMA launched a
new online portal in January 2015,
which enables registered companies
and licensees to submit applications
and make change requests
electronically. The system is called
Regulatory Enhanced Electronic
Forms Submission (REEFS).
The Cayman Islands – with its
modern infrastructure; legal and
financial services providers with
strong multinational experience
and capabilities; efficient regulatory
body with an outstanding, proven
track record – is well known as an
attractive domicile for business. In
fact, the Cayman Islands regularly
receives high ratings and ranks well
in the Global Financial Centres
Index (GFCI), placing 39th in the
GFCI 17 publication, which was
released in March 2015.
Working together with government
and industry, CIMA has been an
active participant in the National
Risk Assessment (NRA) currently
being conducted for the Cayman
Islands. This NRA will assist
in identifying any deficiencies,
which exist in how the jurisdiction
identifies, assesses and understands
money laundering and terrorist
financing risks, and contribute
to efforts to maintaining Cayman
as a leading international
financial centre.
About the Author
Cindy Scotland is the Managing
Director of the Cayman Islands
Monetary Authority. She
represents the jurisdiction on all
regulatory matters with other
international bodies including
the Group of International
Financial Centres Supervisors,
the International Organisation
of Securities Commissions, the
International Association of
Insurance, and the Financial
Stability Board Regional
Consultative Group.