The Consultation Process
Section 4(1) of the Monetary Authority Law establishes a process for private sector consultation in relation to certain proposed measures (see Measures on Which CIMA Must Consult). The Authority has long recognised that the success of its initiatives is dependent on the extent to which licensees embrace them and collaborate with the Authority in their implementation. This 'culture of consultation' is formalised through a clearly stated private sector consultation process.
Measures on Which CIMA Must Consult
Section 34 of the Monetary Authority Law requires private sector consultation in relation to the following proposed measures:
Form of Consultation
Where the Monetary Authority Law requires private sector consultation in relation to a proposed measure, it is sent to the Private Sector Associations along with:
Representations can be made within a prescribed time, to which the Authority will provide a written response. Where a proposal requires the approval of the Governor, a copy of the private sector's representations along with the Authority's response will be provided to the Financial Secretary. The terms of the consultation will be contained in the cover letter posted with the draft measure or consultation paper, including the date by which responses must be received. Each proposed measure will also be posted to this consultation page.
Length of Consultation
The normal period for consultation is 30 days but on occasion, for expediency, the period for consultation may be reduced from the normal 30 days.
Who is Consulted
The Heads or Chairpersons of the Private Sector Associations are the formal point of consultation with industry and the Authority will only accept consolidated sets of comments from each Association on the proposed measure. The Private Sector Associations recognised under the Monetary Authority Law are: Cayman Islands Bankers Association, Company Managers Association, Fund Managers Association, Insurance Managers' Association, Law Society, Cayman Islands Society of Professional Accountants, Caymanian Bar Association, Society of Trust and Estate Practitioners (Cayman Islands Branch), and Compliance Association. However, in many instances the Authority will also consult with other relevant associations such as the Cayman Islands Insurance Association and the Cayman Islands Society of Financial Analysts.
Other Measures on Which CIMA Consults
The following may also occasionally be published for consultation: