One of the most significant changes concerns the publication of enforcement actions. Part III has been renamed from “Publication” to “Discretionary Publication,” clarifying the distinction between mandatory statutory publication requirements and discretionary publication decisions. The Manual now includes a new Appendix I setting out the Mandatory Statutory Publication Requirements across various regulatory statutes, including the Banks and Trust Companies Act, Insurance Act, Securities Investment Business Act, and Virtual Asset (Service Providers) Act.
The updated Manual introduces a comprehensive set of criteria CIMA will apply when deciding whether to exercise its discretion to publish enforcement actions. These include considerations such as: the extent to which publication may protect consumers or stakeholders; whether it serves to protect the Cayman Islands’ reputation as a financial centre; the severity of the breach; the Person’s (being the individual or entity subject to enforcement action) cooperation with CIMA and compliance record; and whether publication could cause unfair or undue damage to the Person’s business.
The revised Manual provides greater detail regarding what information may be included in any discretionary publication, including: the name of the Person subject to enforcement action; relevant dates; a brief description of the breaches; a description of the action taken; and contact particulars for stakeholders seeking further information.
The Manual also includes various procedural clarifications and terminology updates throughout, such as renaming “Part II – The Procedure for Imposing Administrative Fines” to “The Procedure for Administering Administrative Fines.” Additionally, the approval process for discretionary publication decisions now rests with the Management Committee or the Board of CIMA, as applicable, replacing the previous requirement for both Management Committee and Executive Committee approval.
Regulated entities operating in the Cayman Islands should familiarise themselves with these changes and review their compliance frameworks accordingly. The consolidation of the publication procedure into the Enforcement Manual and the enhanced transparency around discretionary publication criteria represent a streamlined approach to CIMA’s enforcement framework.
