This article provides details on the recent changes to the Cayman Islands Securities Investment Business Law and Data Protection Law.
Re-registration of Cayman Investment Managers and Advisers under Securities Investment Business Law
With the end of 2019 closely approaching, Cayman managers and advisers are reminded of the new requirements brought in by the Securities Investment Business (Amendment) Law, 2019 (Amendment Law). Please see our eAlert "Recent Amendments to the Securities Investment Business Law" for more information as to what action need to be taken.
The Amendment Law replaces the concept of an “Excluded Person” with that of a "Registered Person". Currently, a registered “Excluded Person” cannot continue to carry on any securities investment business after 15 January 2020, unless by that date they have been re-registered by the Cayman Islands Monetary Authority as a “Registered Person” or have been granted a licence under section 6 of the Securities Investment Business Law (2019 Revision). Furthermore, if the “Registered Person” is a company incorporated under the Companies Law (2018 Revision), it is required to have a minimum of:
(a) two directors who are individuals; or
(b) one corporate director.
Each of the above must comply with the Directors Registration and Licensing Law, 2014.
Cayman Islands Data Protection Law (DPL)
The DPL came into force on 30 September 2019 and we would like to take this opportunity to remind Cayman funds of their obligations as part of this. The Cayman Islands Data Protection Law, 2017, regulates what organisations may and may not do with the information they hold about an individual and it also provides individuals certain rights with regard to their personal data.
A fund should have the following in place as soon as possible to comply with the DPL:
- Send out a privacy notice to existing and new investors and subscribers;
- Amend its offering memorandum to inform investors of the privacy notice (new funds only; existing funds may issue the privacy notice to existing subscribers);
- Amend existing agreements with third parties who may be handling personal data provided to them by the fund (such as the fund administration agreement) to ensure that they, as data processors, will process personal data in accordance with the DPL; and
- Adopt the necessary internal procedures to ensure that it will comply with the DPL going forward.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.