CAY CIMA published proposed Rule and statement of guidance (RSOG) - market conduct for trust and corporate services providers and company managers.
Follows 2019 CIMA issuing notice listing new regulatory measures, see #54695.
Document dated Nov. 17, 2023, received on Jan. 18, 2024, summarized on Jan. 21.
Proposal Overview
Proposed amendments to existing Statement of Guidance to incorporate rules that will address overall lack of enforceability with trust and corporate service providers (TCSP).
To improve Group of International Finance Centre Supervisors’ Standards compliance.
Proposed RSOG covers TCSP market conduct re integrity, fair treatment, client assets, conflicts of interest, terms of business, complaints handling and advertising.
Establishes minimum requirements and guidance for TCSPs and company managers to ensure fair treatment of clients and general protection of clients' assets and monies.
Rules are binding on regulated person and establish the minimum requirements to comply with at all times when providing business of company management and trust.
Guidance sets out the minimum expectations relating to the market conduct.
Applies to holders of a trust license, restricted trust license and nominee trust license, holders of a companies management license and corporate services license.
Appendix 1 of consultation contains the Rule and Statement of Guidance document.
Consultation
Comments on the proposed Rule and Statement due on or before Jan. 3, 2024.
May 2024 CAY CIMA Final Rule and Statement of Guidance
On May 24, 2024, CAY CIMA published the final rule and statement of guidance for market conduct for trust and corporate services providers and company managers.
Sets out the minimum expectations for integrity, conflicts of interest, advice and use of discretion, client money and assets, resources, and advertising and communications.
Also requirements for terms of business, directorship services, complaints handling.
Applies to holders of a trust license, restricted trust license and nominee trust license, and also holders of a companies management license and corporate services license.
