Government Fee Increases for Financial Services Effective 1 January 2026

The Cayman Islands Monetary Authority (the “Authority”) advises industry stakeholders that a series of legislative amendments introducing targeted fee adjustments across several regulated sectors will take effect on 1 January 2026.

The amendments were approved by Cabinet and published on 19 December 2025. They are intended to ensure that regulatory resources remain proportionate, support alignment with international supervisory standards, and enhance administrative efficiency.

Fee Payment and Penalty Arrangements

The Authority advises all regulated entities affected by the 2026 fee increases that no penalties will be assessed until after 15 February 2026; however, entities are reminded that they are required to remit, at a minimum, the 2025 fee amounts by the statutory deadline of 15 January 2026. Effective 16 February 2026, the Authority will commence applying penalties on any outstanding annual fee amounts, and regulated entities are expected to take the necessary steps to ensure full compliance within the prescribed timelines.

Industry stakeholders are encouraged to review the relevant legislative amendments to ensure timely compliance with the updated fee requirements.

The relevant legislative amendments are as follows:

• The Mutual Funds (Annual Returns) (Amendment) Regulations, 2025;
• The Mutual Funds (Fees) (Amendment) Regulations, 2025;
• The Private Funds (Annual Returns) (Amendment) Regulations, 2025;
• The Private Funds (Fees) (Amendment) Regulations, 2025;
• The Insurance (Application and Fees) (Amendment) Regulations, 2025;
• The Banks and Trust Companies (Licence Applications and Fees) (Amendment) Regulations, 2025; and
• The Accountants (Application for Membership (Amendment) Regulations, 2025

Mutual Funds and Private Funds – Consolidated Annual Fees

The amendments relating to mutual funds and private funds introduce consolidated annual fees, replacing the existing requirement for regulated funds to pay both an annual fee at the beginning of the financial year and a separate annual return fee later in the year. These changes are intended to reduce duplication, simplify compliance requirements for regulated entities, and improve administrative efficiency for the Authority in its role as funds regulator.

For further information or queries relating to mutual funds and private funds, please contact the Investments Supervision Division at ContactInvestments@cima.ky.   

Insurance Sector – Annual Fee Adjustments

The Insurance (Application and Fees) (Amendment) Regulations, 2025 introduce a 10 percent increase to the annual fees applicable to Class B(i), (ii), and (iii) insurers. These licensees, which generally comprise captive insurers, were assessed, following consultation with the Ministry of Financial Services and Commerce, as being capable of absorbing the increases without adverse effects on their client base.

For further information or queries relating to the insurance sector, please contact the Insurance Supervision Division at ContactInsurance@cima.ky.

Banking Sector – Tiered Fee Structure

The Banks and Trust Companies (Licence Applications and Fees) (Amendment) Regulations, 2025 establish a tiered annual fee structure based on total assets under management. The revised structure provides for incremental fee increases to be phased in over the period 2026 to 2028, ensuring a proportionate approach to supervision.

For further information or queries relating to the banking sector, please contact the Banking Supervision Division at ContactBanking@cima.ky.