The third quarter of 2019 saw a series of changes in Cayman Islands legislation and we detail below the latest of these legislative changes:-
Information on Directors of Cayman Companies now available for inspection
In accordance with Section 5 of the Companies Amendment Law and Section 3 of the LLC Amendment Law, from 1 October, 2019, members of the public will be able to visit newly-introduced Company Information Kiosks in the lobby of the Government Administration Building. There they will be able to view a list of names of the current directors and alternate directors of a company incorporated in the Cayman Islands and a list of names of the current managers of a limited liability company.
The Cayman Islands General Registry will be responsible for overseeing the viewings and each request will be required to be carried out in person, with an administrative fee of CI$50 payable to the Cayman Islands Government.
Change to the Register of Directors and Officers
The period within which a Cayman Islands company must notify the Registrar of Companies of any changes to its directors and officers has been reduced from 60 days to 30 days. A company must ensure that it notified any changes to its register of directors, officers or managers to its registered office provider, in order for the Registrar to be informed within the revised timeline.
Updates to the Register of Members
Section 40 of the Companies Law (2018 Revision) was recently updated and included an additional requirement stating that the register of members of a Cayman Islands company specify, with respect to each category of shares, whether such category of shares carries voting rights and, if so, whether such voting rights are conditional. If a company was incorporated or registered after August 8, 2019 it must comply on or before 7 November 2019 and if already incorporated or registered on or before August 8, 2019, it will be required to comply prior to February 7. 2020.
Beneficial Ownership Regime
Pursuant to the Companies Law Amendment, the LLC Law Amendment and the Limited Liability Partnership (Amendment) Law, 2019 the penalties for failure by an entity to establish or maintain its beneficial ownership register, be in compliance with notices and provide required information have been increased. The maximum prison term has remained the same, however fines have been increased to a maximum of $120,000. A company should ensure that it monitors any upcoming changes relating to registrable persons and that they are reflected in the company’s beneficial ownership register.
Economic Substance
Managers with entities currently registered as “excluded persons” under the Securities Investment Business Law (2019 Revision) (“SIBL” and “Cayman Mancos”) may now be considering various options with their counsel and international tax advisers with regard to the impact of the International Tax Co-operation (Economic Substance Law) 2018 (the “ESL”) and SIBL amendments on their Cayman Mancos ahead of the 15 January 2020 re-registration date. READ MORE
New Data Protection Law
On 30 September 2019 the Cayman Islands Data Protection Law (“DPL”) came into force. The DPL sets out the rights of individuals to control their personal data and implements a system to protect against misuse. It broadly reflects the provisions of the EU General Data Protection Regulation (“GDPR”).
DMS is committed to ensuring that privacy is protected and it strictly adheres to the provisions of all relevant data protection legislation globally, including the GDPR and the DPL. READ MORE >>
DMS’s team of highly-skilled regulatory experts are available to assist you with any queries you may have on any of the topics covered in this communication to ensure that you and your fund are fully compliant with all regulatory matters. Please reach out to your usual DMS representative if you require further clarification or contact us below.
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