A building society is a financial institution, owned by its members, that offers banking and other financial services, especially mortgage lending.
Under the Building Societies Law (2010 Revision), Section 3 (1):
Any number of persons who desire to establish a building society, may on having its rules certified as by this Law provided, obtain from the Registrar a certificate of incorporation.
There are no legal requirements for obtaining a building society licence. However, there is a annual fee payable to the Registrar upon each anniversary of its incorporation.
Yes. Section 21 of the Building Societies Law (2010 Revision) states:
"The secretary or manager of a society shall, at least once in every year prepare an account of all receipts and expenditure of the society since the preceding statement, and a general statement of its funds and effects, liabilities and assets."
There is currently only one building society operating in the Cayman Islands.
A Credit Union is a cooperative society registered under the Cooperative Societies Law (2001 Revision) and has as its objects-
(a) the promotion of thrift among the members of the society by the accumulation of their savings;
(b) the creation of sources of credit for the benefit of the members of the society at a fair and reasonable rate of interest;
(c) the use and control of the members’ savings for their mutual benefit; and
(d) the training and education of the members in the wise use of money and in the management of their financial affairs;
Presently, Credit Unions are not required to be licensed by CIMA, however they have to register with the General Registry and are subject to CIMA's regulatory oversight in accordance with section 40 of the Cooperative Societies Law (2001 Revision). Consequently, they are required to submit the following documentation in order for the Authority to issue a non-objection letter to the General Registry when applying for registration.
• Business Plan (containing the proposed staffing, systems, controls, and risk management);
• Copies of Policies and Procedures to ensure compliance with the relevant laws and regulations
• A copy of the member Rules;
• Personal Questionnaire
form, one financial reference, two character references and a Police Clearance Certificate for each of the proposed Directors, Managers, and Senior Officers.
Credit Unions are not required to pay an annual licence fee as they are currently not required to be licensed by the Authority.
Yes. Section 39(1) of the Cooperative Societies Law (2001 Revision) states:
"Every credit union shall have its accounts audited annually, or at such other times as the Authority may require, by an auditor, who shall be a chartered accountant, a certified public accountant, or some other professionally qualified accountant, approved by the Authority."
There are currently two Credit Unions operating in the Cayman Islands, namely, the Cayman Islands Civil Service Association Cooperative Credit Union Ltd. and the Telecommunications Employees Cooperative Credit Union Ltd.
In determining whether a person is "fit and proper" the Authority will consider a person's:
• honesty, integrity, and reputation;
• competence and capability; and
• financial soundness.