Directors Registration and Licensing Act, 2014
Summary
A Law establishing a registration and licensing regime for directors of mutual funds and securities investment businesses in the Cayman Islands.
Sources
[[Directors_Registration_and_Licensing_Act, 2014.pdf]], [[Directors_Registration_and_Licensing(Amendment)_Act_2023.pdf]]
Last Updated
2026-04-27
Overview
The Act applies to directors of Covered Entities, which include mutual funds regulated under the mutual-funds-act-2025 and companies carrying on securities investment business under the securities-investment-business-act-2020 (source: Directors_Registration_and_Licensing_Act,_2014.pdf, Section 2).
Director Categories
Registered Directors
- Definition: Natural persons acting as directors for fewer than 20 covered entities.
- Requirement: Must be registered with cima.
- Fees: Prescribed annual registration fee due by January 15th.
Professional Directors
- Definition: Natural persons acting as directors for 20 or more covered entities.
- Requirement: Must be licensed by CIMA.
- Exemptions: Certain individuals associated with licensed fund managers or corporate service providers may be exempt from the professional license but must still register (source: Section 16).
- Insurance: Must maintain minimum civil liability insurance of $1 million per claim and aggregate (source: Section 15).
Corporate Directors
- Definition: A body corporate appointed as a director for a covered entity.
- Requirement: Must be licensed by CIMA.
- Governance: Must have at least two natural persons on its board who are registered or licensed under the Act (source: Section 20).
- Insurance: Must maintain minimum civil liability insurance of $1 million.
Enforcement and Penalties
- Registration/License Duty: Acting as a director without being registered or licensed is an offence ($50,000 to $100,000 fine and/or 12 months imprisonment) (source: Sections 4, 9, 17).
- Annual Returns: Information must be updated and fees paid by January 15th each year.
- 2023 Amendment: Clarifies that where an offence is committed by a partnership, limited liability partnership, or unincorporated association, partners or managers can be held personally liable if the offence was committed with their consent or through their neglect (source: Directors_Registration_and_Licensing_(Amendment)_Act_2023.pdf, Section 3).