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New SIB Law sets 15 January 2020 deadline for Cayman “Excluded Persons” to become “Registered Persons” with CIMA
Source: | Author:siennacorpgroup | Publish time: 2020-04-14 | 58 Views | Share:

The Cayman Islands Government has passed the Securities Investment Business (Amendment) Law, 2019, amending the Securities Investment Business Law (2019 Revision) (the “SIBL”), which abolishes the ability for an entity to register as an “Excluded Person” under Schedule 4 of the original SIBL.


Entities which have been operating as an “Excluded Person” under SIBL, such as Cayman Islands fund managers, investment advisors and/or broker dealers, shall all be aware of the recent amendment of SIBL, pursuant to which they are required to re-registered as a “Registered Person” by 15 January 2020 and must not commence their securities investment business until they are formally approved by the Cayman Islands Monetary Authority (the "CIMA").


Another potential implication of this amendment of SIBL is that a “Registered Person” may be subject to the economic substance test set out in the International Tax Co-operation (Economic Substance) Law, 2018 (the "ES Law") if it is a “relevant entity” as defined in the ES Law and conducts “relevant activity” of “fund management business” for the purpose of the ES Law.


For more advice in relation to the re-registration and information in relation to the ES test, please feel free to reach out to SiennaCorp. 

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