Conyers issues reminder for CIMA rule

Conyers has issued a reminder that the Cayman Islands Monetary Authority’s (CIMA) new Rule on Corporate Governance for Regulated Entities (Corporate Governance Rule) and Rule and Statement of Guidance on Internal Controls for Regulated Entities (Internal Controls Rule and SOG) comes into effect on 14 October 2023.

The company pointed out that if not already done, certain steps should be undertaken for any entities regulated by CIMA (regulated entities).

The Corporate Governance Rule and Internal Controls Rule and SOG will apply to all CIMA regulated entities (including regulated mutual funds and private funds) with effect from 14 October 2023. Unlike the Corporate Governance SOG which provides guidance on CIMA’s minimum expectations in respect of sound and prudent fund governance, the Corporate Governance Rule and Internal Controls Rule and SOG will create binding obligations, a breach of which may lead to the imposition of fines or other regulatory action.

Conyers added that it is available to provide assistance on all Cayman Islands legal, corporate governance, regulatory and compliance matters and will work with the governing bodies of regulated entities in reviewing their corporate governance frameworks and internal controls policies and procedures to ensure that these meet CIMA’s requirements. Conyers will be able to advise further actions to be taken where gaps or deficiencies are identified.