GLOSSARY OF LICENCE/ AUTHORISATION TERMS
USED BY THE CAYMAN ISLANDS MONETARY AUTHORITY
 

Banking Supervision

Category A Licence - A licence that allows the holder to conduct “banking business within and outside the Islands but subject to such conditions as may be imposed by the Authority” (Banking and Trust Company Law (2009 Revision) section 6(5)(a)).

Category B Licence - A licence that allows the holder to conduct banking business, subject to the restrictions outlined in the Banking and Trust Company Law (2009 Revision) section 6(6). Generally, category B licensees can conduct international banking business and limited domestic activity.

Category B (Restricted) Licence - A licence that permits the holder to conduct banking business only with the persons specified in any undertaking submitted with the licence application.

Money Services Licence - A licence granted to a person to provide money transmission, cheque cashing, and currency exchange services, or to issue, sell or redeem money orders and traveller’s cheques, or any other service as may be specified by the Governor in Cabinet.

Fiduciary Services

Trust Licence - A licence that allows the holder to carry on “trust business.” “Trust business” means the business of acting as trustee,executor or administrator.

Trust Licence (Restricted) - A licence that allows the holder to undertake trust business only for persons listed in any undertaking accompanying the application for the licence.

Nominee Trust Licence - A licence granted for the holder to act solely as the nominee of a trust licensee, being the wholly owned subsidiary of that licensee.

Company Manager Licence - A licence that authorises the holder to provide corporate services as listed in section 3(1) of the Companies Management Law (2003 Revision) or any  other corporate services as may be prescribed under that section.

Corporate Services Licence - A licence that authorises the holder to provide only the corporate services specified in section 3(1)(a) through (e) of the Companies Management Law (2003 Revision).

Controlled Subsidiary - A trust company 1) that is incorporated in the CaymanIslands, 2) that is wholly owned subsidiary of a Cayman Islands trust company, and 3) whose directors and officers are directors and senior officers approved by CIMA to be directors and officers of trust businesses. Controlled Subsidiary Registration authorises the registrant to provide, without a licence, trust services including the issuing of debt instruments or any other trust business connected with the trust business of its parent that holds a trust licence.

Private Trust Company - a trust company that is incorporated in the Cayman Islands and that conducts no other trust business other than with “connected persons”. “Connected  persons” is defined in section 2(2) of the Private Trust Companies Regulations, 2008. Private Trust Company Registration authorises the registrant to provide trust services to  “connected persons”.

Insurance

Class A Licence - A licence that “permits a local or an external insurer to carry on insurance business generally in and from within the Cayman Islands.” (Insurance Law (2008 Revision), Section 4 (4))

Note: The Insurance Law (2008 Revision), Section 4(7) allows CIMA to grant a Class A licence to “an external insurer having its principal or registered office in a place outside the [Cayman] Islands where the legislation for the regulation and supervision of insurers is acceptable to the Authority”.

Unrestricted Class B Licence - A licence that “permits an exempted insurer to carry on insurance business other than domestic business from within the Islands.” (Insurance Law (2008 Revision), Section 4 (5))

Restricted Class B Licence - A licence that “permits an exempted insurer to accept insurance business other than domestic business from its member or members or such persons as may be specifically approved by the Authority.” (Insurance Law (2008 Revision), Section 4 (6))

Insurance Manager Licence - A licence granted to an insurance manager, which is defined as “a company operating in and from within the [Cayman] Islands which provides insurance expertise to and for insurers and which has in its bona fide employment a person who (a) is qualified by examination as a fellow or associate of the Chartered Insurance Institute of London, or who is a member of either the Society of Chartered Property and Casualty Underwriters or the American Society of Chartered Life Underwriters both of the United States of  America; and who is either a current member of good standing of the applicable professional body or of some other professional insurance association recognised by the Authority  for the purpose of this law, or (b) is a person of good standing with such insurance expertise as has been approved by the Authority.” (Insurance Law (2008 Revision)  section 2)

Insurance Broker Licence - A licence granted to and insurance broker, who is defined as “a person (not being an insurer) who negotiates directly or through representatives or other  means, contracts of insurance or of reinsurance on behalf of more than one insurer, or for placement with insurers or reinsurers”. (Insurance Law (2003 Revision) section 2)

Insurance Agent Licence - A licence granted to an insurance agent, who is defined as “a person (not being an insurer) who solicits directly, or through representatives, advertising or  other means, domestic business on behalf of not more than one insurer”. (Insurance Law (2008 Revision) section 2)

Investments and Securities Services

Mutual Fund - A company, unit trust or partnership that issues equity interests for the pooling of investor funds with the aim of spreading investment risk and enabling investors therein to receive profits or gains from the acquisition, holding, management or disposal of investments but does not include a person licensed /registered under the Banks and Trusts  Companies, Insurance, Building Societies, or Friendly Societies laws.

Registered Mutual Fund - A mutual fund that either has a US$100,000 minimum subscription or has its equity interest listed on a CIMA-recognised stock exchange. This type of fund is not required to have a licence but must be authorised by CIMA.

Administered Mutual Fund - A mutual fund whose principal office is provided by a CIMA-licensed administrator that ensures that the fund is run in a fit and proper manner. This type of  fund is not required to have a licence but must be authorised by CIMA.

Licensed Mutual Fund - A mutual fund granted a licence to carry on business in or from the Cayman Islands. The types of funds which must be licensed and the criteria for granting  licences are set out in the Mutual Funds Law (2009) Revision. A Licensed Fund must have either a registered office in the Islands or, if a unit trust, a trust company licensed under the  Banks and Trust Companies Law as its trustee.

Mutual Fund Administrator (Full) - A person licensed to manage (including to control all or substantially all the assets of a mutual fund) or to administer an unlimited number of mutual  funds, to provide the principal office of the mutual fund in the Cayman Islands, or to provide the operator (which is either the director, trustee or general partner) to an unlimited  number of mutual funds.

Mutual Fund Administrator (Restricted) - A mutual fund administrator licensed to provide services for no more than 10 funds.

Mutual Fund Administrator (Exempted) - An administrator authorised by CIMA to provide services to not more than one specified mutual fund.