CIMA Rules and Guidance for Corporate Governance for Regulated Entities

The Cayman Islands Monetary Authority’s (CIMA’s) Rule on Corporate Governance for Regulated Entities (Rule) and Statement of Guidance on Internal Controls for Regulated Entities (Guidance) comes into effect on 14 October 2023. The Rule and Guidance will replace the existing corporate governance regulatory measures. All CIMA regulated entities will be required to take action to ensure compliance.

Disclosure of directors’ conflicts of interest

A director is appointed by company shareholders to manage the day-to-day affairs of a company. With such management comes certain legal and fiduciary duties, and a director must act in the best interests of that company and its shareholders. Amongst these duties, is the ‘disclosure of interest’, which is the focus of this article with respect to BVI and Cayman Islands companies.

CIMA CIRCULAR: 2023 Internal Audit Plans

Issued to all Licenced Full and Restricted Securities Investment Business Licensees and Registered Persons, dated 3 January 2022 The Cayman Islands Monetary Authority (CIMA) has issued a circular reminding entities to undertake regular internal audits of their controls and infrastructure to ensure that they are suitably robust in consideration of the nature and scale of their operations. Consequently, CIMA requests that all relevant entities registered under the Securities and Business Act (SIBA) – eg investment managers or advisors – provide CIMA with a schedule of the internal audit reviews scheduled for 1 January 2023 through to 31 December 2023. SIBA entities are reminded that CIMA expects to receive any issued internal audit report within three (3) months following the completion of the review. See Marbury Fund Services for details of related services or contact your usual Marbury advisor for more details.

Termination of Cayman vehicles and CIMA director registration renewals and cancellations

As the end of the calendar year approaches, if you have any Cayman vehicles that you are considering terminating, there are several steps to be taken before the end of the calendar year to minimise 2023 annual fees.

For funds regulated by Cayman Islands Monetary Authority (CIMA), the timing of de-registration submissions of the regulatory policy has been amended, leading to the change of procedures for terminating funds.