Banks & Trust Companies

INTRODUCTION

All banks and trust companies (except "controlled subsidiaries", defined below) wishing to carry on business from within the Cayman Islands (whether or not such business is actually to be carried on in the Cayman Islands) must be licensed by the Cayman Islands Monetary Authority ("CIMA") pursuant to the Banks and Trust Companies Law (as amended) (the "Law")before they can operate. CIMA carefully reviews applications with the aim of preserving the high standards for which the Cayman Islands have become known in international financial circles.

CONTROLLED SUBSIDIARY EXCEPTION

The Law was amended by the Banks & Trust Companies (Amendment) Law 2006 and there is now one exception to the requirement to be licensed. A trust company that is a "controlled subsidiary" does not require a licence to carry on the business of issuing debt instruments (s2(a) of the Law). However, a