Securities Investment Business Act (2020 Revision)
The primary legislation governing the business of dealing in, arranging, managing, and advising on securities in the Cayman Islands.
Securities_Investment_Business_Act_(2020_Revision).pdf, Securities_Investment_Business_(Amendment)_Act_2023.pdf, Securities_Investment_Business_(Amendment_and_Validation)_Act, _2024.pdf
2026-04-27
The Securities Investment Business Act (SIBA) regulates persons carrying on "securities investment business" in or from the Cayman Islands.
Regulated Activities
A person is considered to be carrying on securities investment business if they engage in:
- Dealing in Securities: Buying, selling, or subscribing for securities as an agent or principal.
- Arranging Deals: Making arrangements for another person to deal in securities.
- Managing Securities: Managing securities belonging to another person in circumstances involving the exercise of discretion.
- Advising on Securities: Advising a person on the merits of dealing in a particular security.
Licensing and Registration
- Licensed Persons: Entities that require a full licence from cima to operate.
- Registered Persons: Certain entities (e.g., those providing services to sophisticated or high-net-worth investors) may be exempt from full licensing but must register with CIMA and comply with ongoing reporting and AML requirements.
- Restricted Licences: As of 2024, the Act formally defines "restricted licences" which may have limits on the number of clients or minimum investment amounts (source: SIBA Amendment Act 2024).
2023 & 2024 Updates
Liability (2023)
Liability for offences under the Act now explicitly extends to partners of general or exempted limited partnerships and persons in control of unincorporated associations, where the offence is committed with their consent or through their neglect.
Virtual Assets (2024)
SIBA is now closely aligned with the virtual-asset-service-providers-act-2024.
- Virtual Asset Trading Platforms: The Act clarifies the definition of "operator" in the context of digital assets.
- Exemptions: cima has the power to exempt persons from SIBA registration if they are already supervised under the VASP Act or if they only engage in virtual asset-related securities business that CIMA deems sufficiently regulated.