cima navigator july 2020 · dart's investment, retail, real estate, and hospitality...
TRANSCRIPT
QUARTERLY NEWSLETTER
NAVIGATORthe
Following Government’s announcement regarding the safe reopeningof businesses that were closed since mid-March, CIMA opened its mainoffices at Cricket Square, Grand Cayman on 22 June. Appropriateprotocols have been put in place to ensure compliance with COVID-safe practices. As a reminder, please see details below.
Remote WorkFlexible working arrangements have been applied whereby staff arecurrently utilising a combination of a shift-based work-in-office andwork-from-home approach. Continued access to staff should be donevia email or available video conferencing facilities such as Zoom.
Office VisitsFace masks are required upon entry, with a strictly enforced two-person maximum occupancy in the reception area. Visitors will also berequired to sanitise their hands before entering and are asked tomaintain a distance of at least 6 feet when in the reception lobby, orother common areas within the building.
Our currency sales counter located at the Government AdministrationBuilding will remain closed until further notice.
Mail & Physical Document DeliveriesPlease note that mail drop offs and physical documents are nowaccepted. However, to limit personal contact, such documents must beplaced in the designated drop box located at the reception lobby until
CIMA Reopens
New Staff on Board
Private Funds & MutualFunds Laws FAQs
CIMA Delegates in AbuDhabi
02
03
05
06
What’s Inside
July 2020
Staff Promotions
New Staff on Board
07Latest Quaterly Statistics
08New Staff on Board
09New Staff on Board
CIMA Reopens
2
Ms. Feona Lopez joined theAuthority on 1 July as an Analystin the Investments SupervisionDivision.
She holds an Associates of ArtsDegree in Accounting and iscurrently pursuing her Bachelors.Ms. Lopez brings with her over 16years of experience to the post.
Prior to joining CIMA, she workedat Harneys Fiduciary (Cayman)Limited as a Credit Controller/Corporate Services OperationsAdministrator for three years andpreviously at Citco Fund Servicesas an Accountant for 13 years.
Looking forward to her new role,Ms. Lopez says she is verygrateful for the opportunity to bea part of the Authority. “I amvery excited to contribute to thework of my team, and to theAuthority’s continued success.”
further notice. Our receptionist will not be acceptinghand deliveries at this time. For documents requiringproof of delivery, persons should continue to makeonline submissions to the respective divisions viaemail or our Regulatory Enhanced Electronic FormsSubmission (REEFS) portal, where possible. CIMAwill continue to accept electronic copies of affidavitsalong with any other documents that have beennotarised/certified.
Fee PaymentsFor licensee related fee payments, please continueto utilise the available Escrow or wire transfer ordomestic electronic transfer services.
As the security of all employees, the general public,and the financial community that we serve remainsour top priority, CIMA will continue to monitor thesituation and reassess its response accordingly.
CIMA Reopens cont’d
New Staff on Board
INDUSTRY REMINDER
Ahead of the 7 August deadline to register private funds andlimited investor funds, published FAQs for the new Private
Fund Law and Mutual Fund (Amendment) Law have recentlybeen updated
See next page for more information
3
Private Funds
Mutual Funds(Amendment) Law 2020
Private Funds & Mutual Funds Laws FAQsIn relation to the revised Private Funds Law (PFL) 2020 (originally published in April and updated in May)and the Mutual Funds (Amendment) Law (MFL) 2020, CIMA has recently updated its FAQs to provide furtherguidance on the registration process and audit requirements for funds. Some of the most commonly referredFAQs updates (as of June 2020) have been compiled below for ease of reference.
What are the audit requirements for Private Funds?
Will an audit for a Private Fund berequired for 2020?
Does the Rule: Segregation of Assets– Regulated Mutual Funds prohibitcommingling of assets as part ofsub-custodial arrangements?
Does the Rule: Segregation of Assets– Registered Private Funds prohibitcommingling of assets as part of sub-custodial arrangements?
Pursuant to Section 13 (1) of the PFL,Private Fund accounts must be auditedannually by an auditor approved by CIMA
The Rule: Segregation of Assets – RegulatedMutual Funds does not prohibit primebrokerage/custody arrangements that allow, inaccordance with established and acceptedindustry practice, a custodian/sub-custodian tohold all client assets in a commingled clientomnibus account along with the assets of otherclients.
Yes. All Private Fundsthat were active as at 7February 2020, or weresubsequently registeredprior to 7 August 2020,are required to submitaudited accounts andFAR for the 2020financial year within sixmonths of their financialyear-end. Auditedaccounts are subject tothe local audit sign-offrequirement.
Private funds with a FYEthat fall between 7February 2020 to 31 July2020 will be granted anadditional three monthsto file audited accountsand FAR. For example,private funds with afinancial year-end ofFebruary 2020 areallowed an extensionuntil November 2020instead of the originalsix-month period, August2020.
A Private Fund is also required to submit its auditedaccounts, along with the Fund Annual Return (FAR), toCIMA within six months of each financial year-end.
The Rule: Segregation of Assets – Registered PrivateFunds does not prohibit prime brokerage/custodyarrangements that allow, in accordance withestablished and accepted industry practice, acustodian/sub-custodian to hold all client assets in acommingled client omnibus account along with theassets of other clients.
Will a Private Fund that is in liquidation/being wound-up or that has commenced theliquidation/wind-up process prior to the endof the transition period be required to submita registration application to CIMA?A Private Fund that completes its liquidation/winding-up prior to the end of the transitionperiod will not be required to apply forregistration pursuant to the PFL. Thecompletion of the liquidation/winding-upprocess means that the private fund hasdisposed of all its investments and has madefinal investor distributions.
4
A full list of published PFL and MFL FAQs canbe found here under the respective headings.This webpage will be updated as relatednotices are issued.
Can a mutual fund that operates as amaster fund and meets the definition of a“Master Fund” under the MFL, registerunder section 4(4)(a) of the MFL?
Can a master fund that does not meet thedefinition of a “Master Fund” for thepurposes of the MFL, register as a“mutual fund” under section 4(4)(a) ofthe MFL?
Are the investors in a fund thatwishes to convert from a LimitedInvestor Fund to a RegisteredFund required to meet theminimum initial investmentrequirement of at least CI$80,000(US$100,000)?
Will marketing materials oroffering documents need to besubmitted as part of theapplication process for LimitedInvestor Funds?Does a mutual fund that operates as a
master fund but does not meet thedefinition of a “Master Fund” for thepurposes of the MFL, need to file anoffering document/summary of terms if itis registering under section 4(3)(a)(i) orsection 4(4)(a) of the MFL?
A “Master Fund”, as defined in the MFL, has beenspecifically carved out from the provisions of section4(4)(a) of the MFL.
A “Master Fund”, as defined in the MFL, hasbeen specifically carved out from the provisionsof section 4(4)(a) of the MFL.
Funds that wish to convert from beingregistered under section 4(4) to section 4(3)of the Mutual Funds Law must comply with theminimum initial investment requirement.Accordingly, these funds are required todemonstrate this by providing an affidavitattesting the same. Any investor that initiallyinvested below the minimum initial investmentrequirement must increase their investment orbe redeemed out prior to the fund converting/registering under section 4(3) of the MutualFunds Law, unless the investor’s currentinvestment meets the minimum initialinvestment.
Yes. A copy of the marketing materials,summary of terms or offering document will berequired upon registration.
A master fund that is a “mutual fund” for the purposesof the MFL but does not meet the definition of a “MasterFund” under the MFL and is therefore precluded on thatbasis from registering as a “Master Fund” under section4(3)(a)(iii) of the MFL is able to register as a “mutualfund” under section 4(4)(a) of the MFL, where it meetsthe prescribed criteria.For a funds’ in this situation, CIMA requires thefollowing on application:
• Application Form;• Offering Document/Summary of Terms/Marketing
Material;• Certificate of Incorporation/Registration;• Confirmation that majority of investors have the
power to appoint/remove the operator(s)(Constitutional documents/ resolution/ Offeringdocument etc.);
• Auditor’s letter of consent;• Administrator’s letter of consent (if applicable);
How do I submit a LimitedInvestor Fund and a LimitedInvestor Master Fund registrationapplication?Application forms APP-101-78 and APP-101-79are submitted in excel format [email protected]
Private Funds & Mutual Funds Laws FAQs cont’d
5
New Staff on Board cont’dMs. Michelle Majid joined as aLearning and DevelopmentSpecialist on 14 April.
Ms. Majid brings over 14 yearsof regulatory experience fromthe Central Bank of Trinidad andTobago where, as a SeniorExaminer, she was involved invarious areas such as banking,insurance, pensions andmacroprudential policy. She alsospearheaded special training anddevelopment activities for staffand was a contributing author toa number of research papers,including other flagshippublications of the Central Bank.
With a keen interest ineducation, Ms. Majid has spent atotal of 20 years delivering
lectures at variousinstitutions in Trinidad andTobago and Scotland.
She holds a Bachelor’sdegree in Mathematics andComputer Science (FirstClass Honours) and aMaster’s degree in Economicsfrom the University of theWest Indies, St. Augustine.In addition to her extensivelist of accolades in highereducation, Ms. Majid is acertified project managementprofessional (PMP) and aCertified Anti-MoneyLaundering Specialist(CAMS).
Ms. Kerry-Ann Salome joined on14 April as a Senior Analyst inthe Banking SupervisionDivision.
She brings a total of 8 years’experience in external audit.Prior to joining CIMA, sheworked at PwC Cayman Islandswhere she served in her mostrecent post as Senior Auditor.She was previously employedwith RBC Bank Jamaica Ltd andErnst and Young Jamaica Ltd.During this time, she led teamsin external audits mainly forbanks, pension funds,
distributors, manufacturers andinvestment funds.
Ms. Salome holds a Bachelor’sDegree in Management Studieswith a major in Accounting(First Class Honors) from theUniversity of the West Indiesand a Master’s Degree inAccounting (Distinction) fromthe University of the WestIndies. She is also a CertifiedPublic Accountant, aqualification which she earnedin New Hampshire.
STAY INFORMED
Additional AML/CFT online training videos are now available onour website. See the ‘Public Education - Regulated Sectors’ tab
www.cima.ky
6
New Staff on Board cont’dMs. Elizabeth “Liz” Sharples joinsas a Chief Analyst in theSecurities Supervision Division.
She attended school in the Isleof Man and having obtained hercombined honours degree inComputer Science and BusinessAdministration at the Universityof Aston in Birmingham shequalified as a fellow of theInstitute of CharteredAccountants in England & Wales.
Ms. Sharples brings with herover 30 years’ experience withinthe investment and global fundsindustry. This experience
includes the establishment,corporate governance andoperational aspects of bothregulated and unregulatedcollective investment vehicles.She has also represented theprivate sector on governmentconsultations and workinggroups and in 2003, she held theChair of the Isle of Man fundindustry’s trade association.
Ms. Sharples moved to GrandCayman two years ago to assistwith the profile-raising andintegration of the Cayman-basedfund administration, acquired byher previous employer.
Ms. Kendra Parchment joined on16 June as an Analyst in theInvestments Supervision Division.
Prior to CIMA, she worked atHedgeServ in the InvestorServices Department and waspreviously employed withWalkers.
With a keen interest in thecompliance arena, Ms. Parchmenthas become inspired to obtain acertification as an Anti-MoneyLaundering Specialist (CAMS)
among other related certificateswithin the financial services field.
In the near future, she also plansto pursue a tertiary education incriminology.
Mr. Kioko Muasya joins as DeputyHead of Internal Audit, effective15 June.
He has 15 years' experience inboth internal and external audithaving been employed with KPMGCayman Islands, Ernst & YoungEast Africa, Cayman IslandsGovernment Internal Audit Unit,and most recently, Dart Caymanas a Senior Manager of InternalAudit. In this post, he performedand supervised the execution offinancial, performance,compliance and other audits over
Dart's investment, retail, realestate, and hospitalitybusinesses, both locally andabroad.
Mr. Muasya holds a Master’sDegree in Real Estate from theUniversity of Cambridge and aBachelor’s Degree in Commerce(Finance) from the University ofNairobi. He is also a CertifiedInternal Auditor and a CertifiedPublic Accountant.
7
Andrew WaltonAnalyst II, BankingSupervision Division
Andrew BloomfieldAnalyst II, Investments
Supervision Division
Angeline MandersonIT Support Assistant,Information Systems
Division
Alexis BoddenSenior Analyst II,
Investments SupervisionDivision
Dominique LloydDeputy Head,
Currency Division
Emille SmallChief Analyst,
Onsite Inspection Unit
George KamauDeputy Head, Insurance
Supervision Division
James TweedieAnalyst II, BankingSupervision Division
Juanita EbanksAnalyst II, Investments
Supervision Division
Justin RankinSenior Analyst I,
Investments SupervisionDivision
Karen Rhoden-MillsSenior Analyst II, Banking
Supervision Division
Katya HinesAnalyst II, BankingSupervision Division
Ava MarzoucaSenior Analyst I, Fiduciary
Services Division
Jeffrey ScottAnalyst II, InvestmentsSupervision Division
Paul OnsakiaChief Analyst, BankingSupervision Division
Shameela TibbettsSenior Analyst I,
Investments SupervisionDivision
Bridget MillerSenior Currency Officer,
Currency Division
Joy-Ann DomingoChief Analyst, Insurance
Supervision Division
Paula BrooksSenior Analyst I,
Investments SupervisionDivision
Shanaz WhittakerSenior Analyst I,
Investments SupervisionDivision
Dane CampbellAnalyst II, Investments
Supervision Division
Jonelle EbanksAnalyst II, Fiduciary
Services Division
Rebekah AnglinAnalyst II, Investments
Supervision Division
Shenique Dixon-LodgeAnalyst II, Investments
Supervision Division
Reshma SeeramAnalyst II, BankingSupervision Division
Robert HinckleySenior Systems
Programmer, InformationSystems Division
Satina StollAnalyst II, Investments
Supervision Division
Sauyuri FonsekaChief Analyst, Fiduciary
Services Division
Taj-Djuet BerrySenior Analyst II,
Investments SupervisionDivision
Tyana WaltonSenior Analyst I,
Investments SupervisionDivision
Vanessa BushChief Analyst,
Onsite Inspection Unit
Wirimayri MukarakateChief Analyst, Compliance
Division
CONGRATS2020 STAFF
PROMOTIONSJanuary - June 2020
New Staff on Board cont’dMrs. Kavita Maharaj-Alexanderjoined CIMA on 7 July 2020 as aChief Policy and DevelopmentOfficer in the Policy andDevelopment Division.
Mrs. Maharaj-Alexander holds aBachelor of Laws Degree (LL.B)from the University of WestIndies, Cavehill and a Master ofLaws Degree (LL.M) inCommercial and Corporate Lawfrom Queen Mary, University ofLondon. She is a qualifiedAttorney-at-Law.
Mrs. Maharaj-Alexander startedher career at a private law firmbefore joining the Legal
Department at the Central Bankof Trinidad and Tobago where sherose through the ranks to theposition of Senior Legal Counsel.Among other things, during hertenure at Central Bank, sheadvised on numerous mattersrelevant to the supervision offinancial entities andintermediaries, the resolution ofa systemically important insurerand contributed to severalstrategic projects involving thepreparation of policy documentsfor the issuance of regulations,ministerial orders and/oramendments to the law or theenactment of new law.
8
QUARTERLY STATISTICS
NUMBER OF ENTITIES LICENSED/REGISTERED & CURRENCYIN CIRCULATION AS OF 30 JUNE 2020
BANKING & TRUST
Banks 123
Category A 9
Category B 114
Nominee Trust 20
Controlled Subsidiaries 7
Money Service Provider 5
Building Societies,CooperativeSocieties, DevelopmentBanks
4
FIDUCIARY SERVICES
Trust Companies 147
Unrestricted Trust 58
Restricted Trust 59
Nominee Trust 30
Registered Private Trust Companies 142
Registered Controlled Subsidiaries ofTrust Companies 46
Companies Management 122
Corporate Service Providers 25
INSURANCE
Insurance Companies 679
Class A 27
Class B 622
Class C 24
Class D 5
Insurance Managers 25
Insurance Brokers 23
Insurance Agents 48
INVESTMENTMutual Funds 10,709
Registered 7,535
Master Funds 2,832
Administered 281
Limited Investor Funds 39
Licensed 61
Private Funds 1,286
Mutual Fund Administrators 76
Full 67
Restricted 8
Exempted 1
SECURITIESSecurities Investment Business Law(SIBL) Licensees 34
Excluded Persons Under SIBL 1,495
CURRENCY IN CIRCULATIONTotal Currency CI$ 155.4m
Notes CI$ 142.3m
Coins CI$ 13.1m
CI$1.00 = US$1.20; m = million
9
JOIN OUR SUBSCRIPTION LIST
To receive the latest content updates to our website, click the‘RSS Subscribe’ link located on select pages at
www.cima.ky
Mr. Amos Beni joined CIMA on 17June as a Senior Analyst(Supervision) in the AML/CFTDivision.
He holds a Masters degree inBusiness Administration fromHeriot-Watt University and aBachelor of Science degree inBusiness Statistics fromMakerere University in Uganda.
He is also a Fellow of theAssociation of Chartered CertifiedAccountants, a Certified InternalAuditor and a member of the
Chartered ProfessionalAccountants Canada.
Mr. Benji brings over eight yearsexternal audit experience, mainlyin the insurance, investments andbanking sectors. He waspreviously employed with KPMGEast Africa (Uganda), Deloitte(Barbados) and PwC (Cayman).
New Staff on Board cont’d
Ms. Priscilla Amal joined our teamas a Chief Analyst in the BankingSupervision Division on 22 June2020.
Ms. Amal is a Chartered CertifiedAccountant with over sevenyears’ experience in audit,accountancy and taxationservices. She worked with Ernst& Young Uganda and DeloitteEast Africa before joining Ernst &Young United Kingdom –Financial Services Office, whereshe was involved in audits withinthe banking, insurance andwealth and asset managementsectors. In this capacity, herduties involved building, leadingand training audit teams to meetclient requirements and
framework of the firm’s qualityand risk management systems.
She is currently pursuing aMaster’s degree in BusinessAdministration at ImperialCollege London. She holds aBachelor’s degree in Catering andHotel Management (1st Classhonours) from MakerereUniversity and an AdvancedDiploma in Accounting andBusiness.
Ms. Amal is a member of theAssociation of Chartered CertifiedAccountants (ACCA) and theGuernsey Society of Charteredand Certified Accountants(GSCCA).