2020 Securities Investment Business Law (“SIBL”) Excluded Person Registration
Any entity registered with the Cayman Islands Monetary Authority (CIMA) as an Excluded Person that wants to continue carrying on securities investment business in 2020 is required to convert their status with CIMA by re-registering as a Registered Person.
What are the key re-registration requirements?
In order to re-register with CIMA as a Registered Person under the new regime, the entity must:
- have at least two individuals as directors or one corporate director, where structured as a company, or the equivalent requirements for entities that are not companies
- satisfy CIMA that its shareholders, directors and senior officers are fit and proper persons
- notify CIMA of any changes to information already filed with CIMA
- consider whether it will likely be required to implement economic substance in the Cayman Islands upon re-registration
Who has to re-register as a Registered Person?
Any entity that is currently registered with CIMA as an Excluded Person and wants to continue carrying on securities investment business in 2020 must re-register with CIMA by 15 January 2020.
Do we need to consider economic substance requirements?
If your Excluded Person is conducting ‘fund management business’ under the Cayman Islands economic substance law then you will need to consider your economic substance requirements after the said re-registration.
What if we have not filed the AML/CFT Forms as yet?
The AML/CFT reporting forms must have been filed with CIMA in order to re-register.
Does CIMA have the power to reject our application for re-registration?
Yes, CIMA has discretion to approve or deny an application for re-registration.
What happens if we do not make the necessary application by the deadline?
Any Excluded Person that has not re-registered with CIMA by the deadline of 15 January 2020 and continues to carry on securities investment business may be in breach of the SIBL and liable for the applicable penalties.
What if we no longer need the Excluded Person status?
If you no longer need the Excluded Person status, you should de-register and thereafter wind up the entity prior to year-end to avoid unnecessary fees for 2020.
