SECURITIES INVESTMENT BUSINESS LAW (2011 REVISION):
A BASIC GUIDE TO REGULATION IN THE CAYMAN ISLANDS
Securities
Securities business is regulated by the Securities Investment Business Law (2011 Revision)(‘SIBL’).
Schedule 1 of the SIBL defines ‘securities’ as:
1. shares or stock of any kind of the share capital of a company;
2. debentures, loan stock, bonds, certificates of deposit and any other instrument that creates or
acknowledges debt (excluding various banking and monetary instruments e.g. cheques,
mortgage instruments and land charges);
3. warrants and other instruments that allow the holder to subscribe for certain securities;
4. certificates or other instruments which confer contractual or proprietary rights;
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Cayman Islands - Legal Update - The Directors Registration and Licencing Law 2014
June 2014
5. options on any security and on any currency, precious metal or an option on an option;
6. futures;
7. rights under contracts for differences (e.g. cash-settled derivatives such as interest rate and
stock index futures, forward rate agreements and swaps).
Regulation of Securities Investment Business
SIBL regulates natural or corporate persons carrying on securities investment business, including market
makers, broker-dealers, securities arrangers, securities advisors and securities managers, in or from the
Cayman Islands.
The Cayman Islands Monetary Authority (‘CIMA’) is directly responsible for licensing, supervision and
enforcement. CIMA may investigate persons whom are believed to be undertaking securities investment
business without a licence.
The processing of licence and registration applications and the ongoing supervision of securities
investment business licensees is the responsibility of the Investments and Securities Division of CIMA.
Regulated Business – Categories
There are 2 categories to be considered, namely licenced persons and excluded persons. Persons
engaged in securities investment business must be:

the holder of a Securities Investment Business Licence, or

Registered as an Excluded Person.
In determining whether a person is engaged in licensable activity, regard must be had to the definition of
'securities' in Schedule 1 of the SIBL.
‘Excluded Activities’ are set out under Schedule 3 SILB and a list of ‘Excluded Persons’ can be found at
Schedule 4.
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Cayman Islands - Legal Update - The Directors Registration and Licencing Law 2014
June 2014
Samson & McGrath Attorneys
Samson & McGrath advises promoters, directors, managers and investors on all aspects of the
establishment and continued operation of regulated and non-regulated business.
We are proud to offer sound, commercially astute and practical legal guidance on all aspects of
launching new ventures, including regulatory and licensing matters.
Contact us
For further information, please contact Ben Tonner or James Kennedy at the address below.
Address:
Telephone:
Email:
5th Floor Genesis Building,
+1 (345) 949 2740
info@samsonandmcgrath.com
P.O. Box 446, Grand Cayman
KY1-1106, Cayman Islands
Disclaimer: This memorandum is intended to provide basic information for our clients and it does not
constitute legal or taxation advice. This note is current at its date of drafting (June 2014).
www.samsonandmcgrath.com
Cayman Islands - Legal Update - The Directors Registration and Licencing Law 2014
June 2014