The Cayman Islands’ Director Registration and Licensing Act, 2014 (the "Law") affecting all directors of regulated funds and managers came into force on 4 June 2014 (except the sections which relate to a Director’s capacity to carry out his duties as a Director) following the approval by the Cabinet of The Director Registration and Licensing (Regulation and Licensing) Regulations, 2014.
In summary the Law requires all directors, whether resident in the Cayman Islands or non-resident, of (i) regulated mutual funds and (ii) companies which maintain a registration as an excluded person pursuant to the Securities Investment Business Act (the “SIBA Exemption”) to register with the Cayman Islands Monetary Authority ("CIMA"). Persons who hold more than 20 of such directorships will need to be licensed by CIMA and will be subject to enhanced regulatory requirements. Corporate directors, irrespective of directorship numbers held, will also need to be licensed by CIMA.
Therefore all directors of registered funds and their Cayman Islands management companies (holding the SIBA Exemption) will have until 4 September 2014,to complete their application and be registered. An initial fee, for the registration of a director of CI$700 (approximately US$800); and an annual fee of CI$700 (approximately US$800) will also be payable
Our funds team are providing pro-active advice to assist in the registration process. Some clients may not wish to complete the registration process with CIMA and we can provide a replacement independent director where necessary.