New Rule on Regulatory Reporting Standards Issued

GRAND CAYMAN (Monday, 14 March 2011) - The Cayman Islands Monetary Authority (CIMA) has issued a new rule called the Rule on Regulatory Reporting Standards (the ‘Rule’). The issuing of this Rule is gazetted in today’s Cayman Islands Government Gazette.

In issuing the Rule, CIMA is observing a recommendation made by the International Monetary Fund (‘IMF’) in its Country Report No. 05/92 ‘Cayman Islands: Assessment of the Supervision and Regulation of the Financial Sector’, where the IMF noted that the regulatory reports formed a key component of CIMA’s ability to monitor regulated entities in their compliance with regulatory requirements and their financial position and performance. The IMF report concluded that as accurate and timely reports are essential to CIMA performing its functions, CIMA should impose administrative fines for late or erroneous filing

Through this Rule, CIMA continues to meet international standards by meeting the suggestions of Essential Criteria 8 of the Basel Core Principle 21, Essential Criteria 12(c) of the International Association Insurance Supervisors Core Principle 12 and principle 9 of the International Organization of Securities Commissions.

The effective date of the Rule is 1st August 2011. Therefore, the Rule will only apply to reports due from the 1 st August 2011 onwards. Where a report was due before the 1st August 2011 but a firm receives an extension to the deadline resulting in the extended deadline falling after 1st August 2011, the Rule will also apply. This should provide firms with a reasonable period to prepare for the implementation of the Rule. 

CIMA views this Rule as a key addition to the Authority’s powers in providing an efficient administrative option to the Authority where it seeks to ensure its provisions and standards are being complied with. 

The rule can be viewed on the Index of Measures page by clicking: http://www.cimoney.com.ky/regulatory_framework/reg_frame.aspx?id=368