CIMA's Board of Directors is responsible for the policies and general administration of the affairs and business of the Authority.
The directors are appointed by the Governor in Cabinet of the Cayman Islands. However, in the case of the Managing Director (who is an ex officio director), this appointment is only made after consultation with the board. The Chairman of the Board and the Deputy Chairman of the Board are designated by the Governor after consultation with the directors appointed.
As prescribed by the Monetary Authority Act, a director “shall be a fit and proper person and shall have demonstrated to the satisfaction of the Governor substantial knowledge and experience relevant to at least some of the functions of the Authority." In addition, the directors:
In addition to the Managing Director, the board consists of a maximum of nine other directors including the Chairman of the Board and the Deputy Chairman of the Board.
The Monetary Authority Act addresses corporate governance issues that include meetings and decisions of the board, disqualifications of directors, pecuniary interests and establishment of committees.
The board may delegate any of its duties and powers to a committee of the board, or to any other committee except a duty or power expressly imposed or conferred on it by the law. It has appointed the following committees.
The Executive Committee comprises local directors including the Chairman and Deputy Chairman.
The committee has responsibility for all enforcement decisions, with the exception of any matters on which the Money Laundering Reporting Officer is obliged to report pursuant to the Money Laundering Regulations.
The Management Committee comprises the Managing Director as chairperson, the Deputy Managing Directors, the heads of the supervisory divisions and any other senior officer that the MD, with the board's approval, may designate. The committee is responsible for the Authority's operational decision-making, considers all issues that impact CIMA, and any matter the board may delegate to it from time to time.
The committee's primary role is considering and making decisions on licensing / registration applications, which are submitted by the supervisory divisions. It is also responsible for considering and making recommendations to the board on enforcement actions.
The Board of Directors has adopted guidelines on significant corporate governance issues that supplement the provisions contained in the Monetary Authority Act. These guidelines include:
Conflicts of Interest
The issue of conflicts of interest is of particular importance to the Authority and the Board of Directors considers it essential that the financial industry and the broader local and international community at large have confidence in the integrity of the Authority and do not perceive the possibility of conflicts of interest as prejudicing that confidence.
Directors may have potential conflicts as they hold directorships or investments in, or have contractual arrangements with entities regulated by or dealing with the Authority. This benefits the Authority as they have current knowledge and experience of the regulated industry. However, the necessary procedures exist to protect against abuse and in accordance with the Board of Directors Conflicts of Interests Code these potential conflicts are fully disclosed and handled in a manner that maintains the integrity of CIMA and its decision-making.