we are pleased to announce the launch of our regulatory resources hub, a centralised and easy-to-navigate guide to the core laws and compliance frameworks shaping financial services across leading jurisdictions. the hub provides concise summaries and direct access to key regulations from bermuda, the british virgin islands, and the cayman islands, helping firms and professionals quickly identify the regulatory requirements relevant to their operations. whether you are reviewing licensing obligations, aml requirements, or governance standards, this hub is designed to support efficient and informed compliance. current jurisdictions covered bermuda: overview of the core regulatory framework and licensing requirements. british virgin islands: summary of key financial services legislation and regulatory obligations. cayman islands: guidance on compliance standards and ongoing regulatory responsibilities. we will continue to expand the regulatory resources hub including additional jurisdictions such as anguilla, cyprus, and jersey. we invite you to explore and make use of this new resource as part of your ongoing compliance and regulatory monitoring activities. visit our regulatory resources hub here. stay informed. stay compliant.

on 15 january 2026, the european commission announced a significant initiative: a comprehensive review of the european venture capital fund (euveca) regulation. this marks the third time the european commission revisited this pivotal regulation since its initial adoption in 2013, signalling a continued commitment to refining the mechanisms that drive capital to europe’s most innovative enterprises. a brief history of euveca originally established to foster a more integrated market, the euveca regulation introduced a crucial eu marketing passport. this passport was designed to allow fund managers to market their funds not only to eu professional investors but also to sophisticated eu investors (who meet certain requirements) across borders without the need for complex, state-by-state compliance hurdles. the goal was clear: unlock capital for small and medium-sized enterprises (smes) and facilitate cross-border fundraising. by revisiting the regulation for a third time, the european commission acknowledges that while progress has been made, further refinement is necessary to fully realise the potential of a single market for venture capital. the scope of the review the euveca regulation will be reviewed to streamline operations and reduce regulatory burdens, with potential broader policy initiatives beyond the euveca framework. to ensure a robust and comprehensive review, the european commission has launched two distinct consultation processes: targeted consultation: this stream is designed for industry experts. it seeks detailed technical feedback from fund managers, institutional investors, businesses, public authorities, and supervisors. public consultation: recognising the broader societal impact of financial regulation, this channel invites contributions from the general public and other interested parties. this dual approach ensures that the review benefits from both granular, technical expertise and broader stakeholder perspectives. focus areas: simplifying compliance for small-size aif managers (assets under €500 million). proportional adjustments for mid-sized aifms to reduce administrative burdens. enhancing the euveca and european social entrepreneurship funds (eusef) frameworks to better support fund managers and align with eu policy objectives. challenges identified high operating costs for fund managers due to compliance, reporting, and administrative requirements. limited scalability for small-size aif managers due to the lack of cross-border management and marketing passports. regulatory thresholds under the aifmd (alternative investment fund managers directive) that may not reflect current market realities. proposed solutions introducing more proportionate regulatory approaches to support fund managers' growth while maintaining investor protection and market integrity. harmonising national registration procedures and reducing regulatory fragmentation. expanding the scope of eligible investments under the euveca framework to include broader asset classes and investment strategies. strategic alignment this review is strategically aligned with the european commission’s broader policy objectives under the savings and investments union and the startup and scaleup strategy. the primary objective is to improve access to finance for innovative companies within the eu. venture and growth capital funds are essential vehicles for financing the economy, supporting companies from their nascent stages through to significant growth phases. by smoothing the regulatory path for these funds, the european commission aims to create a more dynamic and integrated european market. next steps and deadlines for stakeholders operating in the venture capital and private equity sectors, this is an important window for engagement. the feedback gathered will directly shape the european commission’s policy work, influencing the legislative landscape for years to come. both the targeted and public consultations are open until 12 march 2026. the european commission plans to adopt the review of the euveca regulation in the third quarter of 2026. furthermore, there is consideration for a broader policy initiative that may extend beyond the current euveca framework to cover a wider range of venture and growth capital fund managers. conclusion the european commission’s decision to review the euveca regulation for a third time underscores the importance of an agile regulatory environment. the reform aims to strengthen the eu's global competitiveness, support innovative companies, and mobilise private capital for strategic priorities like digital and green transitions, such as digital transformation and green energy initiatives. stakeholders are encouraged to provide evidence-based feedback to shape the policy framework effectively. for more details, the press release can be found here and the consultation here and here

the cayman islands banks and trust companies act (2025 revision) serves as a comprehensive legal framework designed to regulate banking and trust activities within the cayman islands, ensuring consistency, transparency, and accountability in financial operations. consolidating legislation dating back to 1989 and integrating subsequent amendments, including those made under the law revision act (2020 revision), this act underscores the government’s commitment to maintaining a stable financial environment aligned with international standards. officially revised and published as of 1 january 2025, it supersedes the 2021 revision to accommodate recent legislative updates and industry developments. licensing and oversight requirements at its core, the act governs the licensing, operations, and oversight of entities involved in banking and trust business within the cayman islands. it establishes the requirement for businesses to obtain a valid licence from the cima as a precondition for operating either type of business. licences are categorised based on the nature of operations, including “a” licences for broader banking activities, “b” licences for restricted services, and various trust licences for specialised fiduciary functions. specific provisions outline the approval, issuance, and transfer of licences, ensuring that entities meet stringent fit-and-proper criteria. cima assesses the integrity, competence, and financial soundness of applicants and has discretion to impose conditions on, suspend, or revoke licences if deemed necessary in the public interest. definitions and obligations of entities the act provides explicit definitions of entities such as banks, trust companies, and controlled subsidiaries, delineating their respective roles and obligations. trust companies, in particular, are required to maintain adequate professional indemnity insurance or equivalent safeguards to protect against potential financial risks. additional obligations exist for licensees, such as adherence to capital adequacy requirements. this emphasises the sound financial footing expected of such institutions. safeguards and enforcement mechanisms several significant safeguards are embedded within the legislation to promote financial integrity. for example, auditors play a pivotal role by reporting irregularities, including instances where a licensee operates in a potentially detrimental or fraudulent manner. failure to meet obligations, such as annual audits or the submission of accounts, may result in penalties, suspensions, or more severe actions. similarly, cima wields investigatory and enforcement powers, including the ability to access a licensee’s books and records, conduct on-site inspections, and mandate corrective actions. furthermore, cima is authorised to impose public disclosures where deemed necessary to uphold transparency standards. compliance and operational requirements the act also addresses key compliance measures, including net worth and operational requirements that vary by licence type. the use of financial instruments and the execution of relevant fiduciary activities are strictly regulated to prevent improper practices. additionally, the issuance, transfer, or disposal of shareholders’ equity by any licensee requires prior approval from cima unless exempted. key amendments in the 2025 revision the 2025 revision incorporates significant amendments and updates that reflect evolving regulatory needs. among them is the introduction of stricter provisions on economic and financial group structures to ensure that such arrangements do not hinder effective supervision or jeopardise financial stability. this ensures that cayman’s financial system remains robust in both domestic and international contexts. notable updates also include explicit references to the obligations imposed under the beneficial ownership transparency act (2023 revision) and other aligned legislation, creating a cohesive regulatory architecture. appeals and authority responsibilities the act provides appropriate recourse for aggrieved parties, offering an appeals process against decisions made by cima. appeals can be lodged with the grand court, ensuring that disputes are adjudicated fairly. additionally, it recognises the responsibilities of cima, outlining its duties to monitor banking practices, investigate suspected contraventions, and report findings to the cabinet when necessary. penalties and enforcement actions further provisions introduce penalties for violations, including fines and potential imprisonment for contraventions or the intentional submission of false information. immunities are granted to cima and affiliated parties, safeguarding their function in implementing the legislation effectively. any person or entity that fails to comply with the act risks enforcement actions, from fines to the revocation of licences. conclusion: strengthening cayman’s financial sector altogether, the banks and trust companies act (2025 revision) reinforces cayman’s position as a regulated, reputable jurisdiction for banking and fiduciary services, maintaining a careful balance between fostering economic growth and safeguarding the financial system. through its structured provisions, the act ensures that the cima is empowered to supervise a resilient and trustworthy financial sector in the face of both local and global dynamics. further reading cayman islands banks and trust companies act (2025 revision)

the cayman islands companies act (2025 revision) offers a comprehensive framework for the regulation, governance, and administration of companies in the cayman islands. this updated version consolidates decades of statutory refinement, reflecting amendments, restructurings, and enhancements made up to 1 january 2025. its provisions are designed to align with global regulatory standards, ensuring that the act remains relevant to the evolving needs of the corporate landscape. structured for clarity and accessibility structured into 18 parts, the act sequentially addresses the lifecycle of companies, beginning with foundational definitions and advancing through topics such as governance, corporate administration, insolvency processes, and the removal of defunct entities. accompanying schedules provide additional detail on administrative fees, approved stock exchanges, and the allocation of liquidator powers, among other operational specifics. key definitions and incorporation guidelines the act begins by establishing key terminology essential for its interpretation, including terms like “registrar”, “company”, and “special resolution”. it delineates the jurisdictional scope and confirms the registrar of companies as the primary regulatory authority. following this, the section on constitution and incorporation details the processes for company formation, requiring the submission of a memorandum and articles of association. it also addresses modes of incorporation and provisions for companies limited by shares or guarantee, as well as outlining processes for changes in registered offices and company constitutions. capital, shares, and governance standards the act extensively regulates matters concerning company capital and member liability. it provides clarity on the issuance of shares, the creation of premium accounts, and the rights attached to various classes of shares. mechanisms for altering capital structures, including the redemption and purchase of shares, are codified to ensure transparency and flexibility. management and administrative standards are set to enforce proper governance, requiring companies to maintain accurate registers, follow meeting protocols, and report annually. filing requirements and penalties for non-compliance are clearly outlined to support regulatory oversight. frameworks for insolvency and restructuring addressing insolvency and restructuring, the act introduces detailed frameworks for both voluntary and court-supervised windings-up. provisions for appointing restructuring officers aim to provide companies facing financial distress with a structured path towards resolution. the powers, responsibilities, and remuneration of liquidators are also clearly defined, emphasising creditor rights and ensuring an orderly dissolution process. creditor protections and payment prioritisation provisions to protect creditors are integrated throughout the act, ensuring transparency and fairness in the treatment of liabilities. the act enforces hierarchical payment priorities, covering wages, taxes, and other significant obligations. it also upholds the rights of secured creditors, requiring adequate disclosures in cases of default. regulation of exempted and specialised companies the act emphasises the regulation of exempted companies, which operate primarily outside the cayman islands. these entities are subject to annual reporting requirements and are restricted from conducting local trade without appropriate licensing. special provisions cater to other unique corporate structures, such as segregated portfolio companies, exempted limited-duration companies, and special economic zone companies, allowing them to meet specific business needs while maintaining regulatory compliance. facilitating corporate arrangements and reinstatement provisions are included to facilitate corporate arrangements, particularly in cases involving mergers, consolidations, and reconstructions. the act allows for complex arrangements with creditors and shareholders, while safeguards for dissenting shareholders ensure adequate compensation is provided when necessary. mechanisms for striking companies off the register due to inactivity or non-compliance are also defined, alongside detailed pathways for company reinstatement within specified time frames. addressing cross-jurisdictional insolvency international cooperation is addressed through provisions that enable ancillary orders under foreign bankruptcy proceedings, reflecting the act’s responsiveness to cross-jurisdictional insolvency matters and its commitment to protecting local stakeholder interests. modernising governance with key updates the 2025 revision incorporates key updates aimed at modernising corporate governance. bearer shares are explicitly prohibited, ensuring compliance with international standards of financial transparency. the registrar’s powers have been strengthened to enforce compliance through stricter reporting requirements and penalties for violations. enhanced provisions for restructuring officers reflect the increasing complexity of cross-border financial resolutions, while the scope for special economic zone companies has been expanded to attract international businesses and foster economic diversification. streamlined administrative provisions meanwhile, administrative and miscellaneous provisions streamline processes for companies adapting to new regulations. fee schedules have been revised to improve clarity and now cover a broader range of transactions and services. penalties for false declarations are emphasised to maintain the integrity of the corporate registry. a robust foundation for sustainable growth by consolidating its provisions and aligning with international norms, the cayman islands companies act (2025 revision) establishes a robust and adaptive legal framework. it supports sustainable growth and ensures the integrity of the business environment within the cayman islands, reinforcing the jurisdiction’s reputation as a leader in corporate governance. further reading cayman islands companies act (2025 revision) companies (amendment and validation) act, 2024 companies (amendment and validation) act, 2024 (commencement) order, 2024 companies (amendment) act, 2024 (act 3 of 2024) companies (amendment of schedule 4) order, 2023 companies (amendment of schedule 5) order, 2023 companies (amendment) act, 2023 companies (amendment) act, 2023 (commencement) order, 2024

the cayman islands exempted limited partnership act (2025 revision) represents the cayman islands' legislative framework for the establishment, governance, and operation of exempted limited partnerships (elps). first introduced in 2014, it has undergone multiple amendments and consolidations to maintain its relevance and functionality, culminating in this comprehensive 2025 revision. this act serves as a critical pillar of the islands’ legal infrastructure, fostering a robust and flexible environment tailored to the needs of investors, businesses, and financial institutions. core purpose and scope of the act at its core, the act seeks to regulate partnerships that operate outside the cayman islands while providing limited liability to participating limited partners. elps are restricted from engaging with the local public except insofar as necessary for their external business operations. these partnerships are commonly utilised in sophisticated commercial arrangements, such as private equity, venture capital, and investment fund structures, owing to their flexible legal framework and the favourable jurisdictional reputation of the cayman islands. structured clarity through defined sections a hallmark of the act is its systematic division into sections, ensuring clarity in its application. the act opens with key definitions and terms under section 2, providing precise meanings for concepts such as “general partner”, “limited partner”, and “contribution”, ensuring stakeholders operate under a common lexicon. the structure continues with section 4, which underscores the rules for elp constitution, mandating the presence of at least one general partner who bears full liability for partnership debts, while limited partners enjoy liability confined to their agreed contributions. registration process and naming guidelines the registration process, detailed in sections 9 through 12, establishes how an elp is officially recognised. the act requires the filing of a registration statement with the registrar of exempted limited partnerships, paid fees, and compliance with naming guidelines set out under section 6. the name must incorporate “limited partnership” or relevant abbreviations while avoiding misleading or overly generic terms to distinguish it from other entities effectively. certificates of registration are issued as conclusive evidence of compliance, granting the partnership limited liability protections. rights and liabilities of partners the act carefully delineates the rights and liabilities of each partner. general partners are responsible for the day-to-day management and assume unlimited liability (section 19). limited partners, in contrast, are shielded from such liabilities unless they actively participate in management, thereby breaching the “non-participation” stipulation under section 20. a limited partner can still engage in various activities, such as consulting on business matters, voting on specific issues, or serving on boards, without jeopardising their liability shield. asset management and record-keeping requirements a critical feature of the legislation is its robust provisions for asset management and record-keeping. under sections 29 and 30, general partners are obligated to maintain detailed registries of partnership interests and financial contributions, alongside accurate accounting records that detail all transactions. these records must be maintained for at least five years, ensuring transparency and compliance with regulatory oversight, including facilitation of inspections when required by legal or fiscal authorities. dissolution and winding-up procedures provisions for dissolution and winding up are laid out in sections 35 and 36. an elp can terminate voluntarily per the partnership agreement or be dissolved via judicial intervention if circumstances necessitate. the act outlines the roles of liquidators and general partners in managing winding-up procedures, ensuring debts are settled, and assets are distributed equitably among partners or creditors. notably, the dissolution process integrates elements of the companies act for consistency in the winding-up process. de-registration and cross-border flexibility another innovative aspect of the act is its mechanism for de-registration and re-registration. affiliations with foreign jurisdictions are seamlessly managed through section 43, which allows elps to de-register locally and continue operations as legal entities elsewhere. this flexibility has made the cayman islands a globally attractive jurisdiction for structuring cross-border partnerships. modern business adaptations and tax neutrality the act also incorporates forward-looking provisions to adapt to modern business practices. section 47 legalises electronic transactions, enabling elps to conduct business online, reflecting the increasing reliance on digital platforms. additionally, section 38 offers tax neutrality through tax undertaking certificates, assuring elps and their partners that future laws imposing taxes on profits or gains will not apply for up to 50 years, bolstering the cayman islands’ appeal as a tax-efficient jurisdiction. enforcement and compliance mechanisms the legislation’s enforcement mechanisms are firm yet fair. penalties for non-compliance, such as failure to update partnership details or maintain proper records, are outlined explicitly, ensuring accountability without discouraging legitimate business activity. at the same time, provisions such as section 49, which provides leeway for the reduction of penalties in cases of non-wilful default, foster a balanced regulatory approach. conclusion: a reliable framework for global partnerships ultimately, the cayman islands exempted limited partnership act (2025 revision) is a testament to the cayman islands’ commitment to creating a reliable, transparent, and investor-friendly legal framework. by balancing operational flexibility with robust regulatory oversight, the act continues to position the cayman islands as a leading destination for sophisticated international partnerships. further reading cayman islands exempted partnership act (2025 revision) cayman islands exempted partnership regulations (2025 revision)

the cayman islands insurance law, 2010 (law 32 of 2010), enacted by the legislature of the cayman islands, establishes a comprehensive framework for the regulation and oversight of the insurance industry. the law seeks to modernise and refine the governance of insurance operations, ensuring the integrity, financial stability, and professionalism of industry participants. the legislation is structured into five key parts, each addressing crucial aspects of licensing, obligations, regulatory authority, and miscellaneous provisions, providing clarity and consistency in the regulation of both domestic and international insurance-related activities. foundational definitions and regulatory authority the first part, titled “preliminary,” opens with foundational definitions and terminology critical to its interpretation. among these are precise specifications for terms such as “domestic business”, “general business”, and “long-term business”, laying the groundwork for a clear legal understanding. this section also introduces the roles of key professionals such as actuaries and auditors, with explicit qualifications required for their recognition. furthermore, the law emphasises the authority and responsibility granted to the cayman islands monetary authority (cima), establishing it as the central regulatory body tasked with oversight functions. licensing requirements and market entry part two focuses on licensing requirements, mandating that individuals or entities engaging in insurance, reinsurance, or related professional services, such as brokerage or management, must possess a valid license issued by cima. the law delineates multiple categories of licenses, including class a, b, c, and d insurer licenses, as well as licenses for insurance agents, brokers, and managers. these classifications align with the scope and scale of operations, from domestic to international business, and each category comes with specific conditions and obligations. the rigorous application process involves the submission of business plans, compliance with solvency and capital adequacy requirements, and thorough evaluations of personnel and organisational structures to ensure fitness and propriety. this licensing framework not only governs market entry but also enhances transparency and accountability. operational obligations for licensees the third part of the law addresses the obligations imposed upon licensees, emphasising operational integrity and financial soundness. insurers are required to maintain minimum solvency margins, capital adequacy standards, and risk management practices. they must submit annual returns, including audited financial statements, actuarial valuations, and certifications of solvency, enabling the authority to monitor compliance and financial health. insurance brokers and managers are likewise required to maintain separate accounts for their activities and secure professional indemnity insurance. additional stipulations include regulatory oversight of share transactions, strict protocols on the use of trust funds, and the segregation of accounts for long-term and general business operations. regulatory powers of cima turning to regulatory powers, part four outlines cima’s extensive authority to ensure compliance and industry stability. the authority is vested with the power to review licensees’ operations through inspections, the examination of returns, and audits. it may direct entities to take corrective measures if found engaging in unsafe practices or non-compliance. the authority also holds the ability to revoke or suspend licenses, impose conditions, and step in during cases of insolvency or misconduct. to safeguard assets and creditors’ interests, cima may seek judicial assistance or appoint administrators to oversee business operations. this part underscores the regulator’s proactive approach to preserving public interest and maintaining market confidence. miscellaneous provisions and legal protections part five encompasses a series of miscellaneous but significant provisions, further fortifying the legislative framework. it details how benefits from policies are to inure to holders or beneficiaries, ensuring protection from creditors in bankruptcy or insolvency cases, except under specific contractual arrangements. the law addresses jurisdictional matters, affirming that all domestic insurance contracts fall under the purview of the cayman islands courts. additionally, it incorporates due process for appeals and arbitration, outlines penalties for non-compliance, and regulates the use of specific terminology associated with the insurance business to prevent misleading representations. the law repeals previous insurance regulations, but transitional provisions ensure a smooth adjustment for existing licensees and ongoing operations. a robust and transparent insurance sector overall, the insurance law, 2010, is a meticulously constructed legislative instrument designed to foster a robust and transparent insurance sector. through its precise definitions, stringent licensing requirements, and comprehensive regulatory mechanisms, it upholds the values of fairness, financial integrity, and consumer protection. the law positions the cayman islands as a globally respected jurisdiction for insurance business while establishing a framework that simultaneously protects domestic markets and encourages international participation. amendments to adapt to industry evolution the insurance law, 2010, while establishing a solid and comprehensive regulatory framework, has undergone multiple amendments to adapt to evolving industry standards and challenges. these amendments include the insurance (amendment and validation) act, 2024; insurance (amendment) act 2023; insurance (amendment) (no. 2) act, 2023; insurance (amendment) act 2022; insurance (amendment) act, 2019; insurance (amendment) act 2017; insurance (amendment) act, 2013; and insurance (validation) act, 2013; insurance (amendment) act, 2012. these changes demonstrate the cayman islands’ steadfast commitment to refining its legislation to maintain its integrity, competitiveness, and alignment with international best practices. further reading cayman islands insurance act 2010 cayman islands insurance (amendment and validation) act, 2024 cayman islands insurance (amendment) (no. 2) act, 2023 cayman islands insurance (amendment) act 2023 cayman islands insurance (amendment) act 2022 cayman islands insurance (amendment) act, 2019 cayman islands insurance (amendment) act 2017 cayman islands insurance (amendment) act, 2013 cayman islands insurance (validation) act, 2013 cayman islands insurance (amendment) act, 2012

the cayman islands mutual funds act (2025 revision) serves as a comprehensive legislative framework governing mutual funds and their administration within the cayman islands. this revision streamlines the legal requirements, ensuring transparency, compliance, and the efficient regulation of both mutual funds and their administrative bodies. the act is structured into several distinct parts, each addressing critical aspects of the governance and operation of mutual funds, while granting the cayman islands monetary authority (cima) robust powers to oversee and enforce compliance. preliminary section: definitions and jurisdiction the preliminary section introduces the act, providing clarity on its application and defining key terminology. it outlines essential definitions for terms such as “mutual fund”, “equity interest”, “licensed mutual fund administrator”, and “eu connected fund”, establishing a foundation for interpreting subsequent provisions. the act further stipulates its jurisdictional application, emphasising its relevance to funds licensed or registered in the cayman islands and eu-connected funds operating within the framework of european regulations. part 2: requirements for regulated mutual funds part 2 delineates the requirements for regulated mutual funds, ensuring fitness, propriety, and compliance across operational practices. it mandates that mutual funds must either obtain a licence or register with cima, while also submitting a current offering document that discloses material information vital for investor decision-making. additional provisions prohibit misrepresentation as a regulated fund, and the act demands annual audits conducted by approved auditors, ensuring financial integrity. penalties for contraventions are explicitly articulated, enhancing accountability. part 3: administration of mutual funds part 3 shifts focus to the administration of mutual funds, dictating that mutual fund administrators must hold relevant licences issued by cima. the act defines the types of licences available, including unrestricted and restricted licences, with criteria ensuring that administrators possess the expertise and financial stability to manage mutual funds responsibly. cima is empowered to impose conditions on licences, require adherence to specific capital requirements, and ensure the competence of directors or officers managing these entities. annual fees and audited accounts are integral compliance components, reflecting an ongoing commitment to regulatory oversight. part 3a: eu-connected funds a more modern inclusion, part 3a addresses “eu connected funds”, reflecting international alignment with european union directives. it introduces mechanisms for these funds to opt for licensing or registration in the cayman islands, bridging local regulation with cross-border obligations. cima is tasked with monitoring compliance, facilitating attestation, and handling information exchange where required under agreements with eu regulators. part 4: supervisory and enforcement powers of the authority part 4 underscores cima’s supervisory and enforcement capabilities, dividing its oversight into two divisions. division 1 focuses on regulated mutual funds and eu connected funds, granting cima the power to require special audits, investigate alleged breaches, and pursue action against unregulated or non-compliant entities. division 2 extends these powers to mutual fund administrators, enabling cima to demand information, initiate audits, and impose measures to safeguard investor interests and maintain sector integrity. part 5: duties and powers of the authority central to the act, part 5 outlines the duties and powers of cima. it is entrusted with the administration of the legislation, the issuance and revocation of licences, and the approval of exemptions. cima also conducts regular reviews of mutual fund businesses, harnessing tools like on-site inspections, return submissions, and auditor reports to ensure compliance. where necessary, cima can impose conditions, appoint advisors or controllers, and even intervene with court approval to restructure or dissolve entities where investor interests are threatened. part 6: miscellaneous provisions concluding the legislative framework, part 6 encompasses miscellaneous provisions, which include obligations for auditors, an appeals process for decisions made by cima, and the cabinet’s regulatory powers. auditors who identify discrepancies or risks within funds must report these instances directly to cima, enhancing transparency and safeguarding financial stability. additionally, the act incorporates savings and transitional provisions to accommodate entities regulated under previous laws, ensuring a seamless shift to the revised framework. conclusion: significance of the mutual funds act (2025 revision) overall, the mutual funds act (2025 revision) represents a robust legal regime aimed at fostering investor confidence and maintaining the cayman islands’ status as a leading global financial jurisdiction. its balance of regulatory precision, operational standards, and international alignment exemplifies a commitment to both marketplace efficacy and investor protection. further reading cayman islands mutual funds act (2025 revision)

the cayman islands partnership act (2025 revision), a comprehensive legislative instrument governing partnerships in the cayman islands, serves as an essential framework for both general and limited partnerships. revised and enacted as of 1 january 2025, the act consolidates long-standing provisions and more recent amendments, reflecting the evolving dynamics of commercial partnerships while maintaining consistency with common law principles. it represents an amalgamation of numerous preceding laws, including the original 1983 legislation and subsequent critical updates, ensuring a robust legal structure for partnerships operating within the jurisdiction. the cayman islands partnership act (2025 revision) the cayman islands partnership act (2025 revision), a comprehensive legislative instrument governing partnerships in the cayman islands, serves as an essential framework for both general and limited partnerships. revised and enacted as of 1 january 2025, the act consolidates long-standing provisions and more recent amendments, reflecting the evolving dynamics of commercial partnerships while maintaining consistency with common law principles. it represents an amalgamation of numerous preceding laws, including the original 1983 legislation and subsequent critical updates, ensuring a robust legal structure for partnerships operating within the jurisdiction. structure and key definitions the act is meticulously structured into seven parts, covering a wide array of aspects relevant to the formation, operation, regulation, and dissolution of partnerships. part 1 introduces the act, providing its formal citation and key definitions to aid interpretation. critical terms, such as “general partner,” “registrar,” and “partnership property,” are succinctly defined to ensure clarity and consistency in application. definition and nature of partnerships part 2 addresses the nature of a partnership and establishes the fundamental definition and criteria for determining its existence. it asserts that partnerships arise from two or more persons carrying on a business with a view to profit, while distinguishing partnerships from other corporate forms like registered companies. further rules delineate the necessary elements of a partnership and clarify circumstances that do not inherently constitute such a business arrangement, such as joint ownership of property without profit-sharing intentions. partner relationships with external parties parts 3 and 4 focus extensively on relationships involving partners, both with external parties and among themselves. part 3 dictates that each partner acts as an agent for the firm and other partners, with their actions binding the partnership under specified conditions. partners are held jointly responsible for the firm’s liabilities, and detailed rules govern issues like misapplication of funds, wrongful acts, and liability stemming from breaches of trust. notably, stipulations address situations where agreements impose limitations on individual partners’ authority, reinforcing the importance of mutual consent and notice in modifying partnership obligations. internal relationships among partners part 4 elaborates on the relationships between partners, cementing core principles of mutual accountability, fairness, and consent. it defines partnership property, regulating its application solely for partnership purposes, and establishes rules for managing disputes, capital interests, profit-sharing, and retirement. the section protects the integrity of partnership operations by prohibiting private profits derived from partnership opportunities without the unanimous agreement of all partners. additionally, procedures for retirement, expulsion, and the continuation of partnerships under specific conditions are comprehensively outlined. dissolution of partnerships part 5 governs the dissolution of partnerships, providing a structured framework to handle the cessation of partnership operations and their financial consequences. dissolution may occur due to the expiration of a fixed term, notice from any partner, illegality, or events such as bankruptcy or death. the act empowers courts to decree dissolution in cases of misconduct, permanent incapacity, financial losses, or other equitable causes. provisions also detail partners’ rights during and after dissolution, including the application of partnership property to settle liabilities and the apportionment of residual assets. limited partnerships part 6 introduces the special category of limited partnerships, allowing for more flexibility in structuring business relationships. these partnerships require clear delineation between general partners, who bear unlimited liability, and limited partners, whose liability is capped by their contributions. registration of limited partnerships is mandatory, involving a detailed declaration filed with the registrar. this section integrates additional safeguards such as restrictions on limited partners’ involvement in management, protections against unauthorised distributions of capital, and specific requirements for maintaining a registered office. the rights and obligations of limited partnerships, including publication, inspection of records, and handling changes in composition, are meticulously outlined. supplemental provisions and common law integration the supplemental provisions in part 7 ensure that traditional rules of equity and common law continue to apply alongside the act, provided these do not conflict with the statutory framework. this section also validates prior fees charged without legislative authority, affirming their lawful collection under the act. overall, the cayman islands partnership act (2025 revision) strikes a balance between regulatory oversight and business flexibility. conclusion: balancing oversight and flexibility by addressing all conceivable scenarios regarding partnerships and providing clear, enforceable guidance, it fosters a secure and predictable environment for commercial activities in the cayman islands. this legislation is critical for facilitating growth, ensuring compliance, and protecting the interests of all stakeholders in partnership arrangements. further reading cayman islands partnership act (2025 revision)

the cayman islands private funds act (2025 revision) serves as a comprehensive legal framework governing the regulation, registration, and supervision of private funds in the cayman islands. it establishes clear guidelines to ensure transparency, accountability, and compliance in the operations of these funds, thereby promoting investor protection and maintaining the jurisdiction's reputation as a leading global financial centre. scope and applicability of the act the act begins with a preliminary section that defines its scope and application. it specifies essential terminology, such as “private fund”, “operator”, and “investor”, ensuring that all parties involved understand their roles and responsibilities. by explicitly highlighting the applicability of the law to private funds operating in or from the cayman islands, the act excludes regulated mutual funds and certain non-fund arrangements, such as pension funds and sovereign wealth funds, from its purview. provisions also clarify that private funds must comply with the act once they commence business or accept capital contributions. mandatory registration process the second part outlines the mandatory registration process for private funds. all private funds must submit a registration application to the cayman islands monetary authority (cima) within 21 days of accepting investor commitments, alongside the requisite details and non-refundable application fee. the authority holds the discretionary power to register a fund, impose conditions, or refuse registration if necessary. falsely claiming to operate as a private fund carries significant penalties under this section, underscoring the stringent regulatory stance. operational conditions for private funds operational conditions for private funds are comprehensively addressed in part 3. private funds must ensure annual audits of their accounts, conducted by approved auditors, and adhere to internationally recognised accounting and auditing standards. funds are obligated to prepare annual returns, maintain accessible records, and implement robust asset valuation procedures. the valuation process is critical, requiring independence from portfolio management to prevent conflicts of interest. similarly, safekeeping of assets, cash monitoring, and the identification of traded securities are mandated, with provisions for third-party oversight or manager independence to enhance transparency and safeguard investors’ interests. cima retains the authority to intervene should these key operational standards not be met. supervision and enforcement by cima supervision and enforcement fall under the fourth part, which empowers cima to oversee compliance rigorously. cima may request specific information, conduct investigations for potential breaches, or take enforcement action against unregistered entities. such actions can include audits, reporting requirements, or applying to the grand court for asset protection orders. the authority’s enforcement capabilities serve as a robust mechanism to ensure that fund operators remain compliant and accountable. duties and powers of cima part 5 elaborates on the duties and powers granted to cima. the authority oversees the registration process, monitors private fund operations, and ensures adherence to anti-money laundering regulations. if breaches occur, cima can impose conditions, replace fund operators, appoint advisors, or assume control of fund operations. it may also seek court intervention to enforce necessary actions, including fund reorganisations or liquidations. this section emphasises the authority’s pivotal role as both a regulator and a protector of investor interests. miscellaneous provisions and flexibility the act concludes with miscellaneous provisions under part 6, addressing appeals, auditors’ obligations, and exemptions. aggrieved parties may appeal certain cima decisions, such as registration cancellations, to the grand court. auditors are required to report any significant financial or operational irregularities observed during their audits to cima. furthermore, private funds are exempt from the trade and business licensing act, facilitating their operational efficiency. the act also authorises the cabinet to amend its provisions through regulations or transitional arrangements, underscoring its dynamic and adaptable nature. conclusion: a robust regulatory framework the private funds act (2025 revision) reflects a structured and robust approach to regulating private funds in the cayman islands. by combining detailed operational requirements with stringent supervision and enforcement powers, it creates a solid foundation for fostering investor confidence, ensuring regulatory compliance, and maintaining the cayman islands’ global standing as a trusted financial hub. further reading cayman islands private funds act (2025 revision)

the cayman islands securities investment business act (siba) regulates securities investment business conducted in or from the cayman islands. administered by the cayman islands monetary authority (cima), the act aims to ensure that securities-related activities are carried out by fit and proper persons under stringent supervisory standards. it applies to entities incorporated or registered in the cayman islands, including foreign entities with a local business presence. the act also aligns with international regulatory frameworks, such as anti-money laundering (aml) and counter-terrorism financing (cft) measures. definition of securities investment business siba defines ‘securities investment business’ broadly, covering activities such as dealing in securities, arranging deals, managing securities, and providing investment advice. it also includes managing or marketing eu connected funds and acting as a depositary for such funds. ‘securities’ are defined expansively to include shares, bonds, warrants, options, futures, and contracts for differences, among others. licensing and registration requirements entities engaging in securities investment business must either obtain a licence or register with cima unless exempted. licensing applies to activities such as dealing, arranging, managing, or advising on securities. persons who can register instead of becoming licensed include entities conducting business exclusively for sophisticated or high-net-worth individuals or within a corporate group. the application process for both licensing and registration involves submitting detailed documentation, including business plans, organisational structures, and compliance measures. exemptions from licensing and registration certain activities are excluded from the scope of siba, such as issuing or redeeming one’s own securities, acting in fiduciary roles (eg trustee, liquidator), or conducting securities business as part of a joint enterprise. non-registrable persons include those acting in incidental capacities or carrying out securities business exclusively for sophisticated or high-net-worth individuals. compliance obligations licenced and registered entities must adhere to strict compliance requirements, including: anti-money laundering (aml) and counter-terrorism financing (cft) measures. corporate governance standards. annual audits and financial reporting. segregation of client and proprietary funds. entities must also notify cima of material changes within 21 days and maintain proper records. central to safeguarding investor interests and market fairness, the securities investment business (conduct of business) regulations, 2003, and amendments in 2020 introduced rigorous client engagement criteria, such as suitability assessments and disclosure requirements. by addressing business conduct, these regulations reinforce the fiduciary responsibilities of securities investment professionals, ensuring they act in clients’ best interests. enforcement and penalties cima has extensive enforcement powers, including the ability to revoke licences, impose conditions, and take legal action. the act criminalises insider trading and market manipulation, with penalties including fines of up to kyd 100,000 (usd $121,950) and imprisonment for up to seven years. cima can also apply for court orders to preserve assets or wind up non-compliant entities. insider trading and market manipulation siba introduces specific offences for creating false or misleading markets and insider trading. these provisions aim to protect market integrity and investor confidence. penalties for violations include significant fines and imprisonment. significant developments key amendments in 2019 replaced the long-standing and much adopted category of “excluded persons” and replaced it with “registered persons”, requiring re-registration by january 2020. the siba also introduced provisions for managing eu connected funds and aligned with international standards, including fatca, crs, and economic substance requirements. in 2020, further amendments on governance were implemented under the securities investment business (amendment) act, 2020 and the securities investment business (amendment) (no. 2) act, 2020. these modifications focused on enhancing governance structures for licensees and registrants, primarily targeting the robustness of corporate ownership disclosures. additional measures within the amendment act of 2023 continued this trajectory, emphasising transparency and operational accountability. on prudential requirements, the securities investment business (financial requirements and standards) regulations, 2003 set minimum capital and liquidity requirements for licensees, ensuring that firms maintain financial resilience to meet obligations. complementing these regulations are the securities investment business (licence applications and fees) regulations, 2003 and their subsequent amendments in 2024, which standardised licensing protocols and updated fee structures to reflect the evolving cost of regulatory oversight. more recent developments include the securities investment business (registration and deregistration) (amendment) regulations, 2024, reinforcing the mechanisms for maintaining accurate registries of active market participants. these updated processes enhance the cayman islands monetary authority’s (cima) ability to oversee market activities. implications for market participants entities must carefully assess their activities to determine licensing or registration requirements and maintain ongoing compliance with cima’s regulations relative to siba and its subsidiary legislation. siba’s robust enforcement mechanisms and compliance obligations underscore the importance of adhering to its provisions. further reading cayman islands securities investment business act (2020 revision)

the cayman islands virtual asset (service providers) act (2024 revision) serves as a regulatory foundation for virtual asset services in the cayman islands, establishing robust guidelines for the governance and supervision of this dynamic sector. this legislation underscores the jurisdiction’s commitment to fostering innovation while safeguarding the integrity of its financial ecosystem through structured oversight, compliance requirements, and clear operational expectations for virtual asset service providers. defining the scope and goals of virtual asset governance originally enacted in 2020 and refined through subsequent amendments, culminating in this consolidated 2024 revision, the act clarifies the legal framework governing virtual asset activities. its primary goal is to regulate individuals and entities engaged in offering services involving virtual assets, such as digital tokens, cryptocurrencies, and related technologies. these services include, but are not limited to, issuing virtual assets, facilitating exchanges between virtual assets and fiat currencies, operating custodial services, or managing trading platforms. the act embraces both fostering innovation and ensuring adherence to global standards in anti-money laundering (aml) and counter-terrorist financing (ctf). registration and licensing requirements for market participants one of the key pillars of the act is the requirement for participants in this sector to either register or obtain a license, depending on the nature of their activities. a notable differentiation is made between “registered persons”, who engage in lower-risk virtual asset activities, and “virtual asset service licensees”, who undertake more complex or potentially high-risk operations, such as custodial services or the management of trading platforms. the cayman islands monetary authority (cima), identified as the regulatory body, exercises oversight over registration, licensing, and renewal processes. applicants undergo rigorous scrutiny to demonstrate fitness and propriety, technical competence, financial stability, and compliance with aml/ctf standards. a sandbox licensing framework is also incorporated, offering a controlled environment for testing innovative technologies or methodologies that may not yet align with traditional licensing categories. sandbox licenses, granted on a temporary basis, are intended to encourage innovation while maintaining regulatory rigour. operational standards to enhance security and resilience the act also establishes operational standards, focusing on enhancing the security and resilience of this sector. for example, virtual asset custodians are subject to detailed requirements to safeguard client assets, including strict provisions for segregation, transparency in fees and risks, and advanced cybersecurity measures. similarly, virtual asset trading platforms must adhere to stringent rules on user access, asset listing criteria, real-time monitoring of transactions, transparency, and conflict-of-interest management. these provisions aim to fortify trust in virtual asset services while addressing the emerging risks tied to digital finance. ensuring compliance and enforcing regulatory measures an equally significant element of the act is its focus on compliance, enforcement, and the broader role of cima in maintaining oversight. providers are mandated to maintain meticulous records of transactions, comply with reporting obligations, and designate officers responsible for aml/ctf compliance. the authority is also empowered to inspect, revoke licenses, impose penalties, and issue cease-and-desist orders where necessary. non-compliance may result in heavy fines or imprisonment, demonstrating the seriousness with which the cayman islands addresses enforcement. mitigating risks and safeguarding stakeholder interests notably, the act emphasises protecting stakeholders while minimising system-wide risks. it requires providers to actively mitigate risks associated with money laundering, terrorist financing, and other criminal activities. provisions allow for the exclusion or restriction of individuals or entities that fail to meet stringent standards of integrity and competence. this focus on responsible operations seeks to align the cayman islands with global best practices and reinforce its status as a credible hub for virtual asset activities. appeals, audits, and transparency measures finally, the law includes measures for appeals and audits, providing mechanisms for licensees to challenge regulatory decisions and for the authority to verify compliance through annual audits. audits, which must be conducted by qualified professionals, bolster transparency within the sector. further, potential licensees are required to disclose material information about their operations, asset management practices, and any associated risks to maintain transparency with regulators and consumers. balancing innovation and risk for a sustainable financial future by combining innovation-friendly policies with transparent and rigorous regulatory mechanisms, the virtual asset (service providers) act (2024 revision) positions the cayman islands at the forefront of the digital finance revolution while safeguarding its financial stability and reputation. the act reflects thoughtful consideration of the evolving virtual asset landscape, ensuring a balance between enabling growth in this burgeoning sector and protecting against substantial risks. it serves as a testament to the jurisdiction’s commitment to fostering a sustainable and robust financial future. vital enhancements introduced by the 2024 amendment the virtual asset (service providers) act (2024 revision) has been further refined through the virtual asset (service providers) (amendment) act, 2024, introducing vital enhancements to its regulatory framework. key amendments include updates to definitions to better align with evolving industry standards, along with the repeal and substitution of several sections to streamline the application, licensing, and compliance processes. notably, the amendment emphasises the non-refundable nature of fees, new fit-and-proper criteria for directors, and additional compliance obligations, such as the requirement for audited financial statements under certain conditions. furthermore, the supervisory authority has been granted expanded powers, including enhanced measures for monitoring and enforcement, and new provisions for addressing non-compliance and addressing risks associated with innovative business models. these modifications aim to bolster operational clarity, strengthen risk management, and ensure that the cayman islands remains a globally respected jurisdiction for virtual asset services. further reading cayman islands virtual asset (service providers) act (2024 revision) cayman islands virtual asset (service providers) (amendment) act, 2024

the bermuda companies act 1981 is a comprehensive legal framework that governs various aspects of company law, addressing the formation, management, administration and dissolution of companies operating within bermuda. the act is divided into multiple parts, each focusing on specific areas of corporate regulation, ensuring clarity and structure in its application. key definitions and initial provisions the act begins by defining key terms and concepts, such as “affiliated company”, “exempted company”, “local company”, and “mutual company”, among others. it establishes the roles and responsibilities of the registrar, outlines the application of the act, and sets restrictions on certain business activities. the incorporation process is detailed, including the requirements for a company’s memorandum and bye-laws, the naming conventions for companies, and the procedures for registration. companies are also provided with the ability to alter their structure, such as re-registering as unlimited liability companies or vice versa. regulations on public offerings and prospectuses public offerings and prospectuses are addressed extensively, with the act mandating that companies offering shares to the public must publish a prospectus containing specific information. it also outlines the liabilities of officers and experts in relation to misstatements in prospectuses and the conditions under which shares can be allotted. share capital, debentures, and dividends the regulations surrounding share capital, debentures and dividends are equally detailed, including provisions for issuing redeemable preference shares, purchasing a company’s own shares and maintaining a share premium account. the act ensures that dividends are only declared when a company is solvent and able to meet its liabilities. management and administration of companies the management and administration of companies are governed by strict rules, requiring companies to maintain a registered office, keep a register of members and convene general meetings. directors and officers are subject to duties of care, honesty and good faith, with provisions for their indemnification and liability. the act also mandates the appointment of auditors, their roles and the standards they must adhere to, ensuring transparency and accountability in financial reporting. beneficial ownership and corporate restructuring beneficial ownership is another critical area, with companies required to identify and maintain a register of beneficial owners. the act also provides for arrangements, reconstructions, amalgamations, and mergers, offering a framework for corporate restructuring. the protection of minority shareholders and the investigation of company affairs are addressed to ensure fairness and compliance with the law. regulations for local and exempted companies local companies are subject to specific regulations, including restrictions on business activities and ownership to preserve bermudian control over economic resources. exempted companies, on the other hand, are generally restricted from conducting business within bermuda, except under certain conditions. these companies must comply with requirements such as appointing a resident representative and submitting annual declarations. continuance and discontinuation of companies the act also facilitates the continuance of foreign corporations in bermuda and the discontinuation of bermudian companies to other jurisdictions. overseas companies require permits to operate in bermuda, with the minister considering the economic impact and conduct of such companies before granting approval. mutual companies and mutual funds mutual companies, defined as those operating on a mutual principle without share capital, are required to maintain a reserve fund and adhere to specific membership criteria. the act also regulates mutual funds, allowing them to redeem or purchase their own shares under certain conditions. winding-up and liquidation processes the winding-up process is comprehensively covered, detailing the circumstances under which a company may be wound up, the roles of liquidators, and the rights and obligations of creditors and members. the act provides for the management of company assets during liquidation, the disposal of books and records and the handling of unclaimed assets. receivers, managers, and general provisions receivers and managers are also regulated, with provisions for their appointment, duties, and liabilities. the act includes general provisions on the maintenance of registers, the inspection of books, and penalties for non-compliance. it grants the minister powers to inspect and investigate company affairs and provides avenues for appeals to the supreme court. further reading bermuda companies act

the bermuda digital asset business act 2018 serves as a comprehensive legislative framework designed to regulate digital asset businesses operating within bermuda. enacted to ensure the protection of clients and the integrity of the financial ecosystem, the act empowers the bermuda monetary authority (bma) to oversee and enforce compliance among entities engaged in digital asset activities. the legislation is divided into several parts, each addressing specific aspects of digital asset business operations, licensing, compliance, and enforcement. preliminary provisions and definitions the act begins by defining key terms, such as “digital asset”, “director”, “controller”, and “senior executive”, to ensure clarity in its application. it outlines the scope of digital asset business activities, including issuing, selling, or redeeming digital assets; operating exchanges; providing custodial wallet services; and facilitating digital asset lending or derivative transactions. the bma is tasked with issuing codes of practice, prudential standards, and guidance to ensure businesses operate in a manner that safeguards client interests and maintains market stability. licensing requirements a cornerstone of the act is the requirement for businesses to obtain a licence before conducting digital asset activities in or from bermuda. licences are categorised into three classes: class f (full licence), class m (medium-term licence), and class t (temporary licence for pilot testing). applicants must submit detailed business plans, policies, and procedures, along with evidence of compliance with anti-money laundering (aml) and anti-terrorist financing (atf) regulations. the bma evaluates applications based on minimum criteria, including the fitness and propriety of controllers and officers, the prudence of business operations, and the adequacy of corporate governance structures. client asset protection and financial accountability the act mandates licensed undertakings to maintain separate accounts for client assets, ensuring their protection from creditors and operational risks. businesses must also secure indemnity insurance or equivalent measures to safeguard client interests. annual financial statements, audited by approved auditors, are required to ensure transparency and accountability. auditors are obligated to report any material concerns to the bma, further enhancing oversight. compliance and enforcement mechanisms to uphold regulatory standards, the act grants the bma extensive powers to monitor and investigate licensed undertakings. this includes the authority to require the production of documents, conduct on-site inspections, and appoint investigators to examine suspected contraventions. the bma can impose civil penalties, issue public censures, and revoke or restrict licences in cases of non-compliance. prohibition orders may also be issued to individuals deemed unfit to perform functions related to regulated activities. shareholder and controller oversight the act introduces stringent controls over shareholder and controller activities. any individual or entity seeking to acquire significant control over a licensed undertaking must notify the bma and obtain approval. the authority retains the right to object to new or existing controllers if their influence poses a risk to clients or the business’s compliance with regulatory standards. appeals and legal recourse licensed undertakings and individuals affected by bma decisions have the right to appeal to a tribunal. the tribunal, constituted by experienced legal and financial professionals, reviews cases to ensure decisions are lawful and evidence-based. further appeals on points of law may be made to the courts, providing an additional layer of judicial oversight. confidentiality and information sharing the act emphasises the confidentiality of information obtained during regulatory activities. disclosure is permitted only under specific circumstances, such as facilitating the bma’s functions or assisting other regulatory authorities. strict penalties are imposed for unauthorised disclosures, ensuring the integrity of sensitive information. miscellaneous provisions additional provisions address the maintenance of transaction records, the prohibition of misleading business names, and the issuance of certificates of compliance. transitional arrangements allow businesses operating before the act’s commencement to continue their activities while applying for a licence. conclusion in summary, the bermuda digital asset business act 2018 establishes a robust regulatory framework that balances innovation in the digital asset sector with the need for client protection and market integrity. by empowering the bma with comprehensive oversight capabilities, the act positions bermuda as a leading jurisdiction for digital asset businesses while maintaining high standards of financial regulation. further reading digital asset business act

establishment and objectivesthe bermuda monetary authority act 1969 (act) establishes the bermuda monetary authority (bma) as a corporate body with perpetual succession. its primary objectives include issuing and redeeming bermuda's currency, supervising and regulating financial institutions, promoting financial stability, detecting and preventing financial crimes, and advising the government on monetary matters. the bma also oversees innovative business development through its innovation hub. governance and structure the bma is governed by a board of directors, comprising executive and non-executive members, including a chairman appointed by the minister of finance. the board determines the bma’s policies and strategies, while non-executive members oversee compliance with these policies. the act provides immunity to officers acting in good faith and allows delegation of powers to committees or officers. currency and reserves the act establishes the bermudian dollar as the national currency, pegged to parity with sterling or other currencies as determined by the governor. the bma has the sole authority to issue currency notes and coins, which are legal tender. it must maintain external and local reserves equivalent to at least 50 per cent of its currency liabilities. supervision of financial institutions the bma is empowered to supervise, regulate, and inspect financial institutions operating in bermuda. it enforces compliance with anti-money laundering and anti-terrorist financing laws and assists foreign regulatory authorities. the act also mandates the collection of fees from financial institutions for licensing and regulatory services. innovation hub the act introduces provisions for an innovation hub to support innovative financial businesses. entities can apply for authorisation to operate within the hub, subject to fees and confidentiality requirements. financial management and reporting the bma is required to maintain a general reserve and submit annual budgets and audited financial statements to the minister. it must publish an annual report and monthly statements of its assets and liabilities. enforcement and penalties the act outlines penalties for non-compliance, including fines and imprisonment for offences such as providing false information, failing to furnish required data, or breaching confidentiality. it also grants the bma powers to assist foreign regulators and enforce compliance with international standards. amendments and updates the act has undergone numerous amendments to address evolving financial regulations, including the introduction of digital asset business oversight, enhanced prudential standards, and expanded powers for innovation and international cooperation. this legislation forms the cornerstone of bermuda’s financial regulatory framework, ensuring stability, transparency, and compliance with global standards. further reading bermuda monetary authority act

the bermuda monetary authority amendment (no. 3) act 2018 represents a significant legislative update aimed at revising and standardising the fee structures across various financial sectors regulated by the bermuda monetary authority (bma). this act, which came into effect on january 1, 2019, introduces amendments to the fourth schedule of the bermuda monetary authority act 1969, alongside consequential changes to other related legislation, including the banks and deposit companies (fees) act 1975, the investment funds act 2006, and others. the overarching goal of these amendments is to ensure a more structured and transparent fee framework for entities operating under the purview of the bma. phased fee implementation across three years the act is structured to implement a phased fee schedule spanning three years—2019, 2020, and 2021—under parts a, b, and c of the fourth schedule. each part outlines specific fees applicable to various financial entities, including banks, insurance companies, investment funds, corporate service providers, and digital asset businesses. the fee structures are designed to reflect the scale and complexity of the entities, with larger institutions or those managing higher assets or premiums subject to higher fees. for instance, banks are categorised into bands based on their consolidated gross assets, with annual fees ranging from us$20,620 for smaller institutions to over us$400,000 for the largest entities by 2021. fee structures for insurance companies insurance companies are similarly categorised into classes based on their business type and scale, with fees varying accordingly. for example, class 1 insurers carrying on general business are subject to lower fees compared to class 4 insurers or those managing significant gross premiums. the act also introduces specific fees for applications, such as those for registration, licence renewals, and extensions of filing deadlines. notably, the legislation includes provisions for sliding scale fees for complex applications, such as internal capital model approvals, which are assessed based on the structural and organisational complexity of the applicant. digital asset businesses and innovation the amendments extend to digital asset businesses, reflecting bermuda’s commitment to fostering innovation in financial technology. licensed undertakings in this sector are subject to application and annual fees calculated based on their estimated client receipts, with a cap of us$450,000. this ensures that fees are proportionate to the scale of operations while supporting the growth of the digital asset industry. investment funds and trust businesses additionally, the act revises the fee structures for investment funds and trust businesses, introducing application and annual fees that align with the size and scope of operations. for instance, investment funds are categorised into standard, administered, and institutional funds, each with distinct fee requirements. trust businesses, on the other hand, are subject to fees based on their gross income, ensuring that smaller entities are not disproportionately burdened. ensuring compliance and accountability the phased implementation of these fee schedules underscores the bma’s commitment to providing a predictable and equitable regulatory environment. by aligning fees with the scale and complexity of regulated entities, the act aims to balance the financial burden on businesses with the need to maintain robust regulatory oversight. furthermore, the inclusion of late filing penalties and transaction fees for specific applications ensures compliance and accountability within the financial sector. conclusion: modernising bermuda’s financial framework in summary, the bermuda monetary authority amendment (no. 3) act 2018 represents a comprehensive effort to modernise and streamline the fee structures across bermuda’s financial regulatory framework. by introducing a transparent and scalable fee system, the act supports the bma’s mission to uphold the integrity and stability of bermuda’s financial system while fostering growth and innovation in key sectors. further reading bermuda monetary authority amendment (no. 3) act

the bermuda insurance act 1978 is a foundational framework governing bermuda's insurance sector, dealing comprehensively with regulatory oversight and operational standards for insurers, brokers, agents, and other key entities involved in the industry. the act’s primary objective is to safeguard the interests of clients and potential clients, ensuring robust consumer protection while fostering a well-regulated and resilient insurance environment. to achieve this, the bermuda monetary authority (bma) is entrusted with supervisory authority, granting it the power to monitor compliance, enforce regulations, and uphold prudential standards. registration, solvency, and local oversight one of the act’s fundamental features is the obligation it places on insurers to register with the bma. this process ensures that entities meet stringent criteria before engaging in insurance activities, including compliance with financial solvency and regulatory capital requirements. insurers are required to maintain balance sheets reflecting their ability to meet ongoing obligations, adhere to defined technical standards, and secure approval through the appointment of qualified auditors and, in some cases, approved loss reserve specialists. further cementing bermuda’s position as a well-regulated jurisdiction, the act mandates insurance providers to keep their head offices within the territory, reinforcing the local oversight of operations. emphasis on transparency, accountability, and governance transparency and accountability are embedded through the requirement for insurers and intermediaries to file statutory financial statements and returns annually. this approach is bolstered by obligations to submit declarations of solvency compliance and audited financial reports prepared in accordance with prescribed standards, such as international financial reporting standards (ifrs). the role of corporate governance is also emphasised, requiring insurers to adopt policies commensurate with the nature, size, and complexity of their operations, ensuring sound management practices across the sector. robust policyholder protection measures the act is equally stringent concerning policyholder protection. it prohibits insurers from engaging in non-insurance business activities unless deemed ancillary to their insurance functions, defining boundaries for operational focus. policyholders gain further reassurance through provisions requiring insurers to avoid misleading advertisements or practices, with intermediaries held personally liable for policies arranged with unregistered insurers. adaptive legislation through amendments and updates amendment mechanisms make the act a living document, capable of evolving with industry demands. significant revisions have introduced enhanced capital requirements and prudential standards specifically tailored to insurers’ operating group structures. other adjustments encompass the introduction of group supervision to regulate interconnected entities effectively and the incorporation of rules aimed at handling cyber reporting events, reflecting modern threats to operational stability. enforcement mechanisms and supervisory powers the enforcement mechanisms conferred upon the bma are notably robust. the authority possesses extensive investigative powers, enabling it to request information, examine pertinent records, and initiate inquiries into regulatory contraventions. it can impose civil penalties, issue public censures, or, where necessary, serve prohibition orders to protect the marketplace’s integrity. insurers failing to meet solvency margins face intervention measures, including asset maintenance directives or restrictions on dividend payments to safeguard creditors and policyholders. shareholder control and operational changes oversight furthermore, the act defines clear processes regarding the control of shareholder stakes in insurers, mandating notifications to the authority for prospective changes in ownership. it also governs material changes in business operations, requiring timely disclosure to the bma to maintain continuous oversight. commitment to leadership and evolving standards by combining detailed regulatory stipulations with enforcement authority, the insurance act 1978 establishes a highly structured regulatory framework. it demonstrates bermuda’s commitment to being a global leader in the insurance sector, where the interests of markets and consumers are expertly balanced with the need for efficiency, innovation, and growth. through its provisions, the act continues to adapt, ensuring its relevancy in addressing contemporary challenges and safeguarding the robust functioning of bermuda’s insurance industry. further reading bermuda insurance act

the bermuda investment business act 2003 serves as a comprehensive legal framework for regulating investment business activities within bermuda. it is structured into six parts, each addressing specific aspects of investment business, from preliminary definitions to regulatory measures, enforcement, and miscellaneous provisions. part i: preliminary provisions this section establishes the foundational definitions and scope of the act. it defines key terms such as “investment”, “investment business”, and roles like “director”, “controller”, and “senior executive.” it also outlines the criteria for determining parent and subsidiary undertakings and participating interests. the act applies to individuals and entities conducting investment business in or from bermuda, whether incorporated locally or abroad. part ii: the authority the bermuda monetary authority (bma) is designated as the regulatory body responsible for overseeing investment business. the bma’s duties include supervising licensed entities, issuing codes of conduct, and ensuring compliance with prudential standards. it is empowered to publish statements of principles, exempt or modify prudential requirements, and take necessary actions to protect public and client interests. the minister of finance may also issue policy directions to the bma. part iii: regulation of investment providers this extensive section governs the licensing, registration, and supervision of investment providers. it introduces two classes of registered persons—class a and class b—and outlines the requirements for obtaining licences or registrations. class a entities are typically foreign-registered but operate without a physical presence in bermuda, while class b entities maintain a principal place of business locally. the act also addresses the roles of senior representatives, material changes in operations, and the display of licences. alternative investment fund managers (aifms) are subject to specific licensing and compliance requirements under a dedicated chapter. the supervision of investment providers includes provisions for restricting or revoking licences, issuing directions to safeguard client interests, and handling unsolicited calls. the act also establishes appeal tribunals for entities aggrieved by regulatory decisions and mandates the preparation of financial statements, annual returns, and quarterly reports. auditors play a critical role in ensuring compliance, with obligations to report significant findings to the bma. part iv: regulation of investment exchanges and clearing houses this part focuses on recognised investment exchanges and clearing houses, exempting them from licensing requirements under certain conditions. it sets out the qualifications for recognition, application procedures, and ongoing obligations, including the preparation of audited financial statements and compliance with prudential standards. bma retains the power to issue directions, revoke recognition, and enforce compliance through disciplinary measures. part v: restriction on disclosure of information the act imposes strict confidentiality requirements on information obtained under its provisions. disclosure is permitted only under specific circumstances, such as facilitating the functions of the bma or other regulatory bodies, or in connection with legal proceedings. unauthorised disclosure is a criminal offence, carrying significant penalties. part vi: miscellaneous and supplemental provisions this final section addresses offences related to false documentation, corporate liability, and the imposition of civil penalties. it also outlines procedures for serving notices, making regulations, and transitioning from the repealed investment business act 1998. the act includes schedules detailing the types of investments and activities covered, as well as the minimum criteria for licensing and registration. in essence, the bermuda investment business act 2003 establishes a robust regulatory framework to ensure the integrity, transparency, and prudence of investment business activities in bermuda. it balances the need for regulatory oversight with provisions that support the growth and stability of the financial sector. further reading investment business act

the bermuda investment funds act 2006 serves as a comprehensive legislative framework governing the establishment, operation, and regulation of investment funds within bermuda. this act, which has undergone several amendments to adapt to evolving financial landscapes, is pivotal in ensuring the integrity, transparency, and efficiency of bermuda’s investment fund industry. it is structured into multiple parts, each addressing specific aspects of fund management, administration, and oversight. preliminary provisions and definitions the act begins with preliminary provisions, including its short title, commencement, and key definitions. it introduces terms such as “controller”, “associate”, and “investment fund”, providing clarity on the roles and responsibilities of various stakeholders. the bermuda monetary authority (bma) is designated as the primary regulatory body, tasked with issuing statements of principles and ensuring compliance with the act. classification and regulation of investment funds part ii of the act delves into the core aspects of investment funds. it categorises funds into private, professional, and registered classes, each with distinct qualifications and procedural requirements. for instance, private funds are limited to 20 participants and are prohibited from public promotion, while professional funds cater to qualified participants with specific financial thresholds. the act mandates the registration and authorisation of funds, emphasising the importance of segregated accounts to protect participants’ assets. it also outlines the criteria for fit and proper persons to serve as operators, officers, or service providers, ensuring that only competent and ethical individuals manage these funds. prohibitions and oversight of unauthorised funds the act imposes strict prohibitions on unauthorised, unregistered, and undesignated funds, with significant penalties for non-compliance. it introduces the concept of “overseas funds,” which are investment funds incorporated outside bermuda but designated by the bma to operate within its jurisdiction. these funds must adhere to both local and international regulatory standards, with provisions for annual declarations and potential cancellation of designation. fund administrators and client protection part iii addresses fund administrators, although many provisions in this section have been repealed in recent amendments. the focus shifts to ensuring that fund administrators operate in a manner that protects the interests of clients and maintains the integrity of the financial system. appeals and dispute resolution mechanisms the act also establishes a robust framework for appeals and dispute resolution. part iv introduces appeal tribunals, detailing their constitution, procedures, and powers. it provides aggrieved parties with the right to challenge decisions made by the bma, ensuring fairness and accountability in regulatory actions. information gathering and investigative powers information gathering and investigation powers are outlined in part v. the bma is empowered to obtain information, require the production of documents, and conduct investigations into suspected contraventions. these provisions are designed to enhance transparency and enable the authority to take timely corrective actions. the act also includes measures to protect whistleblowers and ensure the confidentiality of sensitive information. disciplinary measures and enforcement disciplinary measures are a critical component of the act, as detailed in part va. the bma can impose civil penalties, issue public censures, and make prohibition orders against individuals or entities that fail to comply with regulatory requirements. these measures serve as deterrents against misconduct and reinforce the importance of adherence to the law. reporting obligations for fund operators the act emphasises the importance of accurate and timely reporting. operators of authorised funds are required to submit periodic reports to the bma, detailing their activities and compliance with the act. any material changes to a fund’s offering document or structure must be promptly reported, ensuring that participants are adequately informed. confidentiality and disclosure restrictions in its concluding sections, the act addresses the restriction on the disclosure of information, safeguarding the confidentiality of participants and other stakeholders. it also outlines miscellaneous provisions, including penalties for false documentation and offences by companies. conclusion: a pillar of bermuda’s financial framework overall, the bermuda investment funds act 2006 is a cornerstone of bermuda’s financial regulatory framework. it balances the need for robust oversight with the flexibility required to foster innovation and growth in the investment fund industry. by establishing clear guidelines and stringent enforcement mechanisms, the act reinforces bermuda’s reputation as a premier jurisdiction for investment funds. further reading bermuda investment funds act

the bvi securities and investment business act (revised edition as of 1 january 2020), known as “siba”, is a comprehensive legal framework established in the british virgin islands to govern the licensing, regulation, and oversight of investment business activities within and from the territory. this iteration of siba consolidates amendments made since its original enforcement in 2010, reflecting legislative updates up to 2019 (but note, an important amendment in 2023 – see below – is not yet consolidated). it outlines obligations for individuals and entities operating in investment sectors and ensures adherence to standards designed to promote financial integrity, investor protection, and market stability. structure and definitions in the act siba is structured into six main parts, each addressing distinct areas of investment regulation. the preliminary provisions include foundational definitions and clarifications, with detailed interpretations of terms such as “investment business”, “investment activity”, “licensee”, and “public interest”. the definitions underscore the act’s emphasis on delineating scope and applicability to a range of activities and participants, from mutual funds to directors of investment entities. regulation of investment businesses part i addresses the regulation of investment businesses, introducing licensing as a legal requirement for any entity intending to conduct such activities in or from the bvi. notably, it emphasises prohibiting unauthorised business, setting stringent compliance standards for anyone seeking to operate within this jurisdiction. licences are categorised into several classes, reflecting the nature of permissible activities – including acting as principal, arranging, managing and acting as a custodian. applicants must demonstrate financial soundness, adequate resources, and the requisite expertise. provisions for maintaining capital resources, appointing directors and senior officers, and obtaining prior approvals for significant structural changes form crucial safeguards under this section. public offerings of securities part ii governs public offerings of securities, establishing the groundwork for transparency and investor protection. it requires issuers to register prospectuses, ensuring they disclose pertinent information and comply with specified content requirements. this part delineates rules for controlling securities offerings, including exemptions for certain cases. siba further empowers the fsc to suspend or terminate non-compliant offers and introduces mechanisms for compensation in cases involving misleading advertisements or defective prospectuses. regulation of mutual funds part iii deals expansively with mutual funds, classifying them as public, private, professional, or recognised foreign funds. registration or recognition is mandatory for funds seeking to operate legally, and managers and administrators must also comply with licensing provisions. siba mandates financial record-keeping, the preparation of audited financial statements, and adherence to governance standards. it also sets investor eligibility thresholds and prohibits unauthorised fund promotion. recognised foreign funds must exhibit compliance with comparable regulatory standards in their countries of origin, ensuring cross-jurisdictional consistency in investor protections. private investment funds part iiia, introduced in later amendments, focuses on private investment funds. these funds, though organised similarly to mutual funds, cater to a limited class of investors, promoting portfolio diversification. stringent requirements ensure conformity with constitutional documents and limit investor participation to professional and qualified individuals. this section also prescribes specific guidelines regarding the registration process, investor access thresholds, and ongoing compliance obligations. administrative provisions part iv provides overarching administrative provisions applicable across licensees and funds. it mandates the appointment of a certified authorised representative for entities without significant local management presence, facilitating communication with the fsc. furthermore, this part entails requirements related to the preparation, submission, and audit of financial statements for governance oversight and public accountability. market abuse and criminal liabilities part v, which addresses market abuse, imposes criminal liabilities on insider trading and market manipulation. it defines key concepts like “inside information” and “professional intermediary” while prescribing substantial penalties for individuals and entities engaged in such misconduct. this section underscores the jurisdiction’s commitment to fostering transparency and fairness within its financial markets. miscellaneous provisions and adaptability finally, part vi contains miscellaneous provisions, allowing for the creation of additional regulations, refinements to penalties, and codification of reporting obligations. these measures enhance flexibility to adapt the legislative framework in response to evolving market conditions and enforcement challenges. the inclusion of schedules categorising investments, defining qualified investors, and outlining transitional provisions further illustrates siba’s methodical approach to regulation. summary of the act’s impact overall, siba forms a bedrock of financial regulation in the british virgin islands, characterised by robust licensing protocols, governance requirements, actionable investor protections, and clear enforcement mechanisms. its detailed provisions establish the territory as a reputable jurisdiction for conducting investment business activities while safeguarding market confidence and compliance. introduction to the 2023 amendment the securities and investment business (amendment) act, 2023, introduces a series of refinements to the principal securities and investment business act, building upon its regulatory framework to address evolving market dynamics. enacted on 20 march 2023 and gazetted on 21 march 2023, the amendment emphasises enhanced oversight of ownership structures within the investment business ecosystem by defining and incorporating the concept of “controlling interest”. definition of controlling and significant interests the definition of “controlling interest” was added to clarify when an individual, by ownership or influence, impacts a licensee’s operations or governance. it encompasses numerous scenarios, including holding more than 50 per cent of a licensee’s voting rights, retaining significant influence that does not reach the majority threshold, or exerting authority through indirect control or directives to directors or senior officers. additionally, the definition of “significant interest” was revised to establish a concrete threshold of 10 per cent or more in voting rights, distributions, or the power to appoint or remove directors. application of amendments to licensing and ownership the amendment applies these clarifications to several pivotal sections of siba. section 6, which governs the licensing and scrutiny of applicants, now considers both significant and controlling interests in determining an applicant’s eligibility. similarly, section 11, related to acquisitions and disposals of such interests, incorporates the nuanced oversight of controlling interests, ensuring that any transactions are subject to the commission’s approval. this extension applies consistently through subsections one to five of section 11, reinforcing comprehensive regulatory coverage. alignment of certifications with new classifications section 64, addressing certifications for authorised representatives, was amended to align with these new classifications of interest. collectively, these changes bolster the fsc’s ability to oversee ownership structures rigorously, ensuring that controlling or influential parties within licensee organisations uphold compliance and contribute positively to the integrity of the financial market. impact of the 2023 amendment by expanding its regulatory scope and refining the governance standards, the securities and investment business (amendment) act, 2023, augments the siba’s framework, creating a more resilient and transparent investment business environment in the british virgin islands. these targeted amendments align closely with the jurisdiction’s overarching goals of maintaining financial stability, fostering investor trust, and upholding market soundness. further reading bvi securities and investment business act (consolidated as at 1 january 2020) 2023 amendments

the bvi banks and trust companies act, revised as of 1 january 2020, continues to serve as a foundational legal instrument governing the licensing, regulation, and supervision of banking and trust operations within the bvi. this comprehensive legislation, known as the “btca”, remains pivotal in ensuring the sound management of financial entities, safeguarding stakeholder interests, and sustaining public confidence in the jurisdiction’s financial services sector. with subsequent amendments in 2022, 2023, and 2024, the act demonstrates its adaptability in addressing emerging regulatory needs and aligning with global best practices. licensing framework and local presence requirements the btca establishes a robust licensing framework that prohibits the operation of banking and trust businesses without a valid licence issued by the financial services commission (the fsc). licence categories are well-defined, including general banking licences, restricted licences, and various classes of trust licences, which are tailored to meet the specific operational needs of different business models. entities must satisfy stringent criteria related to financial resources, organisational structure, and regulatory compliance to gain and maintain these licences. by requiring licensees to designate a principal office and authorised agents, the act ensures that entities maintain a strong local presence for regulatory interactions. 2022 amendment: bridge banks and systemic risk management under the banks and trust companies (amendment) act, 2022, notable enhancements to the regulatory framework were introduced. one of the most significant changes was the addition of provisions enabling the licensing and operation of “bridge banks”. these institutions can temporarily acquire and manage the assets, liabilities, and operations of failed banks, ensuring continuity of services and financial stability during crisis situations. the amendment also introduced the concept of “systemically important banks” (sibs), designating financial institutions whose failure would pose a systemic risk. sibs are subject to heightened regulatory standards to mitigate potential crises. enhanced resolution powers granted to the commission allow for the orderly wind-down of failed banks, including liquidation, asset transfers, and depositor reimbursements. the amendment also required licensees to provide proof of deposit insurance under the virgin islands deposit insurance act within six months of operation, further strengthening depositor protection. 2023 amendment: governance and broader definitions the 2023 amendment introduced additional refinements to the definition and governance of financial entities. the term “significant interest” now encompasses the ability to appoint or remove one or more directors of a licensee, reflecting a broader scope of control that necessitates regulatory oversight. additionally, the act clarified the definition of trust business to include arranging for another person to act in fiduciary capacities. the amendment reinforced procedural diligence by mandating that all appointments of directors and senior officers by licensees require prior approval from the commission. these measures underscore the importance of effective corporate governance in maintaining financial sector integrity. formalisation of the 2024 amendment further expanding on the framework, the banks and trust companies (amendment) act, 2024, introduced additional refinements to definitions and operational requirements. a key update was made to the term “trust business”, which now explicitly includes performing equivalent fiduciary functions for other legal arrangements. this broader scope ensures that emerging legal structures akin to traditional trusts are subjected to the same standards of regulation and oversight. the amendment reinforced deposit insurance requirements, compelling applicants for banking licences to submit a copy of their deposit insurance policy within six months of licensing, thereby aligning with the virgin islands deposit insurance act. the enforcement of the 2024 amendment was formalised through statutory instrument 2024 no. 76, setting its commencement date as 2 january 2025. this procedural measure guarantees clarity on the regulatory expectations and timelines, enabling stakeholders to adequately prepare for compliance. emphasis on transparency and compliance across all iterations, the btca places a strong emphasis on financial transparency and operational integrity. licensees must maintain prescribed capital resources and liquidity thresholds, engage qualified auditors, and comply with annual and quarterly financial reporting requirements. severe penalties are outlined for non-compliance, ranging from monetary fines to imprisonment, emphasising the commitment to upholding lawfulness within the financial ecosystem. additions such as the prohibition of anonymous accounts and restrictions on using sensitive words like “bank” and “trust” further highlight an unwavering stance against money laundering and other illicit activities. adaptability and global alignment the btca’s consistent adaptability is reflected in provisions granting the fsc authority to issue regulatory codes and address emerging challenges. these codes govern areas such as client asset protection and the consolidated supervision of banking groups. by incorporating global standards and proactive oversight mechanisms, the banks and trust companies act solidifies the bvi’s position as a competitive yet tightly regulated financial jurisdiction. the ongoing evolution of the law through targeted amendments underscores its role in fostering a secure, dynamic, and investor-friendly financial environment. further reading bvi banks and trust companies act (consolidated as at 1 january 2020) 2022 amendments 2023 amendments 2024 amendments notice of the banks and trust companies (amendment) act 2024 (no 17 of 2024)