Archive for February, 2017

LA to tackle a dozen offshore laws

Wednesday, February 22nd, 2017

The financial services minister will be dominating the legislative agenda of the Legislative Assembly with almost a dozen offshore laws set to be debated by legislators ahead of evaluation by the Caribbean Financial Action Task Force (CFATF) later in 2017. The Government of the Cayman Islands is expected to deal with a significant amount of business over the next few weeks before the LA is prorogued ahead of Nomination Day next month and the formal launch of the campaign for the General Election.

Wayne Panton’s ministry has prepared eleven bills, mostly relating to the regulatory framework surrounding new financial services vehicles, and to improve the business environment. Laws such as the Companies Management (Amendment) (No. 2) Bill, 2017; the Companies Amendment (No. 2) Bill, 2017; and the Limited Liability Companies (Amendment) Bill, 2017 are related to creating the framework for the internal beneficial ownership registers in line with Cayman’s beneficial ownership information exchange agreement with the United Kingdom.

Laws such as the Cayman Islands Limited Liability Partnership (LLP) Bill, 2017, which introduces a new business structure designed to increase the attractiveness of the Cayman Islands to professional service providers, are designed to support new financial services vehicles. The Foundation Companies Bill, 2016 is designed to introduce a new type of company that that offers trust and estate planners to what was described as a more satisfactory structure.

The Limited Liability Companies (Amendment) (No. 2) Bill, 2016; the Trusts (Amendment) Bill, 2016; the Exempted Limited Partnership (Amendment) Bill, 2016; and the Tax Concessions (Amendment) Bill, 2016 are designed to delegate the authority of Cabinet to the Cabinet Office for processing tax concession certificates.

Also, the minister is bringing an amendment to the Trade and Business Licensing Law to clarify and extend the Trade and Business Licensing Board’s functions and exemptions for the agricultural sector and to remove the requirement for police clearance certificates for those with an interest in listed or regulated companies, provide proper classification for pay day loans, and allow utility bills to be substituted for bank references.

Last, but not least, and certainly the most controversial, is the Legal Practitioners Bill, 2016, which was deferred for further public consultation from the last meeting. Intended to modernise the regulation of the practice of law, it will also address the Financial Action Task Force (FATF) recommendations ahead of the assessment.

The bills, which can all be found on the government gazette’s website, are as follows:

– the Companies Management (Amendment) (No.2) Bill, 2017;
– the Companies Amendment (No. 2) Bill, 2017;
– the Limited Liability Companies (Amendment) Bill, 2017;
– the Cayman Islands Limited Liability Partnership Bill, 2017;
– the Foundation Companies Bill, 2016;
– the Limited Liability Companies (Amendment) (No. 2) Bill, 2016;
– the Trusts (Amendment) Bill, 2016;
– the Exempted Limited Partnership (Amendment) Bill, 2016;
– the Tax Concessions (Amendment) Bill, 2016;
– the Legal Practitioners Bill, 2016;
– the Trade and Business Licensing Amendment Bill, 2017.