Justin Savage Tim Cone James Bergstrom January 6 2022 Cayman Islands director registration and licensing in 2022 Ogier | Private Client & Offshore Services - Cayman Islands Justin Savage, Tim Cone, James Bergstrom Private Client & Offshore Services IntroductionShould directors renew their registration?What are the fees and deadlines for payment?How do directors renew their registration?Administrative fines regimeIntroductionThis article provides guidance for those directors who are registered with the Cayman Islands Monetary Authority (CIMA) under the Directors Registration and Licensing Act (Revised) (DRLA) as a result of being appointed as a director of a "covered entity" (ie, a Cayman Islands investment fund registered with CIMA under the Mutual Funds Act or an entity, such as an investment manager, that is registered as a "registered person" under the Securities Investment Business Act). Investment funds regulated under the Private Funds Act are not currently covered entities and directors of such entities are not required to be registered.Should directors renew their registration?Directors must pay 2022 renewal fees if, on 1 January 2022, they were appointed as a director of a covered entity for some or all of 2022 (this includes where a covered entity did not complete its de-registration process with CIMA on or before 31 December 2021).Directors may choose to pay renewal fees even if they were not appointed as a director of a covered entity on 1 January 2022, if they know or expect that they will be appointed as director of a covered entity during 2022.What are the fees and deadlines for payment?A payment of US$853.65(1) must be made on or before 15 January 2022. Payments received after 15 January 2022 will incur penalties. Accordingly, renewals should be addressed as soon as possible.How do directors renew their registration?Directors should log on to CIMA's portal using the login credentials supplied on registration. Directors who have forgotten their password should use their email address and the "forgot password" link on the home page to reset it. Directors should follow the instructions on the portal to make their payment.Administrative fines regimeUnder the Monetary Authority (Administrative Fines) (Amendment) Regulations 2020 (the Regulations), CIMA may impose administrative fines upon individuals and entities who are in breach of certain prescribed regulatory laws, including the DRLA.Directors that are registered with CIMA should note that if they fail to inform CIMA of any change in their information provided to CIMA within 21 days of the change (eg, ceasing to act as a director of a fund), this would be categorised as a serious breach. Failure to pay the annual director registration fee with CIMA by 15 January 2022 would be categorised as a minor breach, with a further minor breach of the Regulations for each month that the annual fee is not paid.It should be noted that the good standing of a covered entity with CIMA would be blocked by the failure of a relevant director to renew their DRLA registration. Accordingly, there is also the potential for a missed DRLA renewal to lead to breaches of the regulations by covered entities, with some breaches being categorised as a very serious breach, attracting an administrative fine of up to US$1,219,5121. Accordingly, directors are advised to address the requirements for renewal of their registrations as soon as possible.For further information on this topic please contact Dave Sherwin, Justin Savage, Tim Cone or James Bergstrom at Ogier by telephone (+1 345 949 9876) or email ([email protected], [email protected], [email protected] or [email protected]). The Ogier website can be accessed at www.ogier.com.Endnotes(1) Administrative fines are levied in Cayman Islands dollars. The figures quoted are in US dollars at an exchange rate of US$1.00=CI$0.82, rounded.