CIMA: Proposed Changes To Outsourcing Arrangements For Funds Service Providers

The Cayman Islands Monetary Authority ("CIMA") has recently released a draft Statement of Guidance: Outsourcing All Regulated Entities (Excluding Regulated Mutual Funds) ("SOG") and Consultation Paper ("Paper"). 

The Paper calls upon the private sector to make submissions to CIMA in respect of the SOG, which submissions are due to be received by 5pm Cayman Islands time on Monday, 11 May 2015. The SOG is relevant to all entities that are regulated by CIMA in the Cayman Islands, for example Cayman Islands professional corporate services providers, administrators and trustees which are regulated under Cayman Islands legislation such as the Banks and Trust Companies Law, Insurance Law, Mutual Funds Law, Companies Management Law and Securities Investment Business Law (amongst others). Importantly, the SOG excludes entities that are mutual funds regulated pursuant to the Mutual Funds Law.