New Directors Registration and Licensing Law (with Conyers Dill Pearman Alert)

The Cayman Islands government enacted The Directors Registration and Licensing Law, 2014 (the "Law"), which seeks to regulate directors of certain entities established in the Cayman Islands. The Law is not yet in force, and is expected to come into force once the corresponding regulations and fee schedules are drafted.

The subject entities, defined as "covered" entities, include regulated mutual funds and certain "Excluded Persons" under the Securities Investment Business Law.

There are three classes of directors which will be regulated: (i) "registered directors," natural persons appointed as directors to fewer than twenty covered entities; (ii) professional directors, natural persons appointed as directors for twenty or more covered entities; and (iii) corporate directors, corporate entities appointed as directors for any covered entity.

The Law applies to each category whether or not the director is resident in the Cayman Islands.