All about Dealing in Securities Licence in Cayman Islands

The Cayman Islands Monetary Authority (CIMA)

Dealing in securities means: buying, selling, subscribing for, or underwriting securities, or offering or agreeing to do so, either as principal or agent.  A person will be “dealing” with respect to a particular transaction only if he continuously holds himself out as carrying on that business or the transaction is a result of him continuously soliciting members of the public (e.g. persons other than licensed or exempted persons).

A holder of a Dealing in Securities license from CIMA is authorised for:

  • Reception & Transmission,
  • Execution of orders on behalf of clients,
  • Dealing on own account (Market Making),
  • Underwriting of financial instruments,
  • Management of securities.

    The following examples of service providers carrying on securities investment business from a place of business in the Cayman Islands, should expect to be required to apply for a licence (unless qualifying for an exemption):

  • investment managers
  • investment advisers
  • market makers
  • broker/dealers
  • market intermediaries.

    Institutions that provide the forex services in the Cayman Islands are required:

  • be incorporated in the Cayman Islands;
  • be licensed in accordance with the licensing requirements;
  • meet the minimum net worth requirements (CI$100,000);
  • have two directors;
  • obtain the Authority's written approval prior to the appointment of all directors and officers (N.B.: if the Authority is of the opinion that the director or officer is not a fit and proper person, it may reserve the right to refuse to grant approval of the appointment);
  • be in compliance with the Money Laundering Regulations;
  • submit quarterly returns as specified by CIMA; and
  • provide CIMA with annual audited financial statements.
    Please note the CIMA fees are as follows:
  • CI$1,000 application fee
  • CI$10,000 annual fee
  • Quarterly transaction fees of 2% of the gross amount transferred overseas up to a maximum of ten dollars for each transaction.

    Brokers who intent to carry on business primarily outside of the Cayman Islands, an Exempted Company may be eligible.  An Exempted Company must carry on its primary business outside of the Cayman Islands.

    For obtaining the Dealing in Securities licence in the Cayman Islands a legal representative is a requirement.   Our team of regulatory lawyers and consultants, offering a "one-stop-shop" package of services, can assist you on the whole set up, on drafting of all necessary documents and manuals which will accompany the application, on the licensing  process and for on-going compliance requirements.  We further assist on the Bank account openings, as well as on the appointment of a local Director.

    Mandatory requirement is that the client is fit and proper for such business.

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