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Section 4(1) of the Monetary Authority Act 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.

Consultation Measures

Section 34 of the Monetary Authority Act requires private sector consultation in relation to the following proposed measures:

  • The issuance or amendment of rules or statements of principle or guidance concerning the conduct of licensees and their officers and employees;
  • The issuance or amendment of statements of guidance concerning the requirements of the money laundering regulations; and
  • The issuance or amendment of rules or statements of principle or guidance to reduce the risk of financial services business being used for money laundering or other criminal purposes.

The following may also occasionally be published for consultation:

  • Drafts of Regulatory Policies and Procedures of the Authority, particularly where they may have the effect of creating, directly or indirectly, rules or statements of principle or guidance concerning the conduct of licensees or their officers or employees; and 
  • Other instruments or consultative papers on issues where the Authority is seeking to take into account industry views when making recommendations, or providing advice, to the Government, including the amendment or introduction of regulations or laws.

Form of Consultation

Where the Monetary Authority Act requires private sector consultation in relation to a proposed measure, it is sent to the Private Sector Associations along with:

  • an explanation of the purpose behind the measure;
  • the reasoning for the measure;
  • an explanation of how others countries and territories have adopted the measures; and
  • an estimate of the associated costs and benefits associated.

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.

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.

Current Matters Under Consultation

There are currently no matters under consultation.

Click Prior Consultation to view measures that were previously issued for consultation.