Outsourcing For Regulated Entities: CIMA Guidance

The Cayman Islands Monetary Authority ("CIMA") has recently released a Statement of Guidance ("SOG") on Outsourcing¹ for all regulated entities (excluding regulated mutual funds², excluded persons under the Securities Investment Business Law (Revised) ("SIBL") and private trust companies³). The SOG will apply inter alia to, banks, administrators, insurance companies and SIBL entities regulated in the Cayman Islands. It is not intended to be prescriptive, but sets out CIMA's minimum expectations regarding outsourcing.

Key Provisions

Some of the key provisions to note include:

Intra-Group Arrangements – when outsourcing material functions to related entities (as defined in the SOG), the SOG sets out certain minimum requirements, including written agreements, a business continuity plan and a process for monitoring, reporting and oversight.