In this month's Cayman Islands Regulatory 15/15 episode, Chris Capewell, John Dykstra and Ellen O'Brien discuss recent insurance and reinsurance updates, CRS compliance obligations, new AML return requirements for trust companies, updates to the List of Approved Stock Exchanges and recent regulatory notices relating to struck-off entities and non-compliant directors.

Accompanying slides from the episode are available: https://issuu.com/maplesgroup/docs/maples_group_regulatory_15-15_podcast_-_september_?fr=sZWYwYzkzMTc4NTE

To read the 2026 Cayman Islands Regulatory Calendar, visit: 2026 Cayman Islands Regulatory Calendar - Maples Group.

To read the 2026 BVI Regulatory Calendar, visit: https://isu.pub/MgRPtyF

SPEAKERS:

Chris Capewell, Partner | +1 345 814 5666 | [email protected] | View bio

John Dykstra, Partner | +1 345 814 5530 | [email protected]| View bio

Ellen O'Brien, Associate | +1 345 814 5476 | ellen.o'[email protected] | View bio

The contents of this podcast do not constitute legal advice and need to be taken as a general update only.

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Hello everyone and welcome to the latest edition of the 1515 podcast.

I'm Chris Capewell and I'm the Global Head of the Regulatory

team here at the Maples Group.

Today on our podcast, I'm delighted to be joined by Ellen O'Brien,

who is a senior lawyer

in the regulatory and financial services team here in Cayman.

And today we've got a special guest, John Dykstra, who's the Head

of the Cayman insurance practice here at the Maples Group in the Cayman Islands.

Hey, John. Hay. Ellen. Hi, Chris. Hi, Chris.

Perfect.

As always, today's content of the podcast does

not constitute legal advice, so please take it as a general update.

Only we have this time create the slide resource to accompany today's episode.

So a link to the slides can be found in the podcast description

for some timely updates on Cayman Islands, BVI, Irish Luxembourg in Jersey

regulatory developments, do subscribe and have a look at our Regulatory

Roundup blog.

And also, as always, please don't forget to subscribe to Apple Podcasts or Spotify.

So before we get into the regulatory developments and Ellen,

hopefully you can take us through those.

John, mindful that you're the special guest.

So you're going to get some priority here.

Insurance, I guess if you can just give the listeners

a bit of a background on, on sort of what you do

and also the insurance industry in the Cayman Islands,

and then we can perhaps get into some more detail.

Okay. Yeah. Thanks, Chris.

I think yeah.

The first thing to note is the Cayman Islands

is a very well established insurance domicile.

In certain practice areas, in particular captive insurance,

the Cayman Islands has been a leading hub for decades,

and also a leading jurisdiction for insurance linked securities.

But there's also been commercial reinsurance in Cayman for quite some time.

And so, what people need to be aware of

is there is already a well-established

base of expert service providers in Cayman that do service

insurance and reinsurance products and have done so for quite some time.

And also more broadly in Cayman, we have insurance

experts, but also expert service providers who cover off

funds and finance, which is becoming increasingly important

as we're seeing a crossover amongst these different areas.

Yeah, the deep benches, an interesting one, actually.

I wrote an article several years ago talking about the benefits of using

Cayman, and the deep bench featured prominently where a tiny jurisdiction,

I think, you know, good proportion of that small population

are either qualified lawyers, accountants or auditors.

And then we have a stable political system, a good judiciary, tax neutrality.

And then obviously to get the Cayman, it's straightforward.

You've got direct flights from New York and London as well.

There's been a lot of crossover, John on the insurance side with private equity

and investment funds.

So what influences that had on the reinsurance sector in your work?

Yeah, over the past I'd say 4 to 5 years we've really seen the the impact

private equity is increasingly interested

in investing in reinsurance.

And that can mean taking a, you know, just an investment in an existing platform.

Or it can mean setting up a new reinsurance platform from scratch.

And so there's been a real explosive growth in

that sector in Cayman in the past 4 or 5 years.

And part of that is Cayman is very much the natural home

for these PE shops to set up a new platform that they're tucking into

their their broader ecosystem, because they already use Cayman

for their funds platforms and for all the associated transactions.

And so they can come to Cayman and they can use the same service providers.

They can continue with structures and with regulatory regime

that they're already generally familiar with.

And they can just plug that new reinsurance platform into that

existing ecosystem.

And PE shops are, you know, when they do transactions,

they are setting up very large value transactions.

And so you can really measure the growth by looking at the

the assets being managed by these reinsurers.

The regulator has always put out on a quarterly basis,

statistics on what we have here in Cayman

in terms of number of insurers and the assets under management.

And in the past five years we've seen it basically double.

So we now have over 700 licensed insurers in Cayman.

There's more than $176 billion in assets with these insurers.

That's an increase of over 100 billion as compared to five years ago.

So the growth has been very significant and very measurable.

And that's largely coming from these these PE backed reinsurance transactions

that are really, really dramatically increasing the

the dollar value size of this market in Cayman.

Yeah, I've been to a few town halls, as I'm sure you are to

insurance is definitely a focus for the jurisdiction.

And as you mentioned the the growth has been quite explosive.

So it's good to see

on the regulatory side where obviously Ellen, myself and others in the team

help out with a lot of the regulatory components on the insurance sector.

One related aspect to that, which is gathering

further momentum and excitement within industry, is government's recent

application to the US National Association of Insurance Commissioners.

So NAIC, as a recognized qualified jurisdiction,

are you able to just talk us through what has led us there

and what a successful application would mean for Cayman?

Yeah, this is something that's been under discussion and active consideration

for a number of years. It was more than ten years ago.

I was in New York when the the Minister of Financial Services

at that time announced that came and was pursuing this as

a priority.

And, you know,

it has been a number of years, but that whole time this has been a focus

of government attention and attention from the regulator and from industry.

There's been a lot of consultation,

a lot of collaboration with industry to make sure we get this right.

So the good news is this summer, the government, you know,

did submit formally an application to,

to get qualified jurisdiction status recognition from the US and AIC.

Again, it's not something that happens suddenly.

It's been in the works for a very long time.

Basically, it's a reflection of the fact that Caymans already very well

aligned with the US regulators.

Most of the reinsurance business comes from the US, and so by its nature,

it's already very well aligned.

And this is just the next step in that natural evolution.

Get the formal recognition from the US and that we are a well

recognized, you know, regulatory regime for their purposes.

It'll enhance our credibility.

And the other key point is when it does take place, eligible

Cayman reinsurers, if they should want to do so,

could then at that point apply for what they call certified

reinsurance status with applicable US state regulators, and that allows them

to reduce collateral requirements so it can free up capital.

It's not going to be applicable for every reinsurer,

but for those that could benefit from it, this will open up another

round of possibilities in terms of how the structure.

And you mentioned, John, that this came up almost ten years ago,

that the government was working on it in terms of timeline, and it's

far more accelerated now.

But what's the expected timeline, I guess, for reinsurers?

What should they be doing now,

if anything, to prepare for their qualified jurisdiction status?

Yeah, there is no set timeline.

And we're aware that there are a couple

of the jurisdictions that have had applications in

for quite a number of years.

Perhaps they're not as well positioned as us, but it can take a while.

I'd say on the quick side, you're still a couple of years out.

But in the meantime, the good news is, because the government

has committed to this and there's there's a very reasonable expectation

we're going to see a significant increase in resources being deployed

to support this sector and to support enhancing the regulatory regime.

Because we're already well aligned with US requirements.

I don't think anyone needs to, at this point, be overly

concerned about dramatic changes to the regulatory regime.

It's already well aligned, but what you're most likely to see

in the short term is more staffing and funding

to the insurance regulator, which is beneficial to everyone.

It reduces wait times, you know, and increases expertise.

Basically,

the regulator is working hard to keep pace with a very rapidly growing industry.

They need to grow their resources as well.

And and all of that's happening in collaboration with industry.

We have industry bodies and Cayman

that are in active discussions with government and with the regulator

to to develop sensible regulatory enhancements.

So say if you are in this market, if you're a stakeholder,

the most sensible thing to do right now is be engaged and consider

participating in shaping the next phase of the reinsurance market.

There are consultations put out to industry, people are asked for

their input and people should by all means participate.

The industry, you know,

brings the expertise on the ground from a commercial perspective.

And this is your chance to to really dig in into to, you know,

set the markers for what sensible, what works, what's proportionate.

And I think we can have a fantastic product on the back end of that.

Thanks, John.

And yeah, the industry participation which should touch on is is key.

I think more and more people are getting exposure to the insurance sector

now than say when you talked about your in New York ten years ago.

I think it's a real driver to came in and came in as a jurisdiction.

Certainly.

You know we have probably the largest funds practice on island.

So I know that you're dealing frequently

with a lot of the funds team and then the regulatory team.

We're speaking to you all the time, and it's coming up in all of our associations

that we're all on that this is a key area and there's tremendous growth in it.

And hopefully there will be further growth as we go through.

I think that's probably it for you.

John, you should probably stay on.

You'll be, enthralled by some of the regulatory content

that we're going to get through.

So, Ellen, am I able to turn over to you just for a second so that you can give us

some of the updates?

Just from my side.

Before we do get into your updates, I know that we did a special edition

podcast a couple of weeks ago on the AML rule.

That's still very much the focus for our team

and everyone on Ireland, to be honest, that has any regulatory exposure.

The AML rule is front and center.

I think, we've got four days and the, the effective date coming in.

I would just say on the AML rule, the part that probably there's

going to be some further clarity on is on the audit itself.

Just in terms of, for example, whether service provider

audits are permitted, the intensity of the audits, those types of things.

So for clients, what we are saying is before you rush ahead and engage

anyone for the audit, maybe just pause for a period.

There's probably going to be some more clarity

coming around that so that you can be clear, you know, what you need to do

for that particular audit and what you're signing up to, both from the client,

but then also from the relevant person that's performing the audit.

You have clarity on what that is.

So, Ellen, 15th of September

tomorrow we are recording this on the 14th.

So probably useful that you kick off with CRS if you can.

Great. Thanks, Chris.

So as you mentioned, the 15th of September is the CRS

compliance form deadline date for submission via the DITC portal.

So for any listener is not familiar with the cross compliance form,

this is the annual declaration of compliance

that requires financial institutions to provide additional information

to the DITC to ensure that effective implementation

and compliance of CRS reporting and due diligence procedures.

So while the CRS returns should have

been submitted at the end of July

and they focus on reportable financial accounts,

the CRS compliance form is focused on non reportable financial accounts of the fee.

So that form collects data designed to enable the ditsy

to assess the quality of an overall compliance

rather than specific account holder reporting.

And importantly, just to flag for listeners that from June

2027, the annual deadline date for a submission of this year's

compliance form will align with the Chris return reporting deadline.

So that's the first regulatory update.

Next, I'm going to turn to the AML return requirement

for restricted trust companies on private trust companies.

So on the 7th of September, CIMA published a general industry

industry note confirming that the requirement to complete and submit

an AML return is now being extended to restricted

trust companies and private trust companies for the first time.

So until now, these entities were not subject to the AML return process.

So this form, this forms part of CIMA’s

risk based supervisory approach to AML

and is aimed at strengthening as oversight of the fiduciary sector

through collection of collection and assessment of entity level data.

So I want you to bring listeners three key dates to be aware of.

So the first is the first.

The first relevant date is the 1st of November 2026.

And this is the initial AML return will be issued to restricted trust

companies and private trust companies through CIMA’s Citrix Software Platform,

and the reporting date will be in respect

of the 31st up until the 31st of December 2025.

So this will require entities

to provide information as at the 31st of December 2025.

So entities will need to look back at their 2025 year data.

And the third important date to flag to listeners is the 31st of December, 2026,

and this is the submission deadline.

So the completed AML return must be submitted to CIMA by this date.

And another important point to flag to listeners

is that now, going forward, restricted trust companies and private

trust companies will be incorporated into the existing AML return cycle

that is applicable to trust and corporate service provider sectors.

So subsequent AML returns will be issued on the 1st of June

each year, unless CIMA advises otherwise.

I was just going to say I think that's important, right?

So that they're falling into the cycle with all the other

CIMA registered RFPs as well.

And then on top of this, we have the overlay of the AML rule as well.

So I think going forward, you know, these AML returns

as you're probably going to allude to, that they can be quite painful.

There's a good number of questions in there.

So there's going to be strength in numbers.

I think everyone's going to be going through this process.

But now, as you said, restricted trust companies and private

trust companies are going to fall into that cycle.

Yeah. Yeah. Exactly.

And I just wanted to touch quickly upon what

the AML return covers, because I know that will be of interest to clients.

And hopefully CIMA has published a detailed completion guide

for private trust companies and restricted trust company.

So that's a useful resource

when clients are going through the completion of the form.

So the AML return form covers

approximately 360 questions and is made up of two sections.

So there is a lot to work through there.

So it's best not to leave this to the last minute.

And once the return is released, to turn your attention

to working your way through it.

And of course, if there's any questions, we be happy to assist.

But looking at the two sections.

So the first section contains the AML inherent risks.

So this section collects data on the entities risk profile.

So this will include collecting data for example on clients demographics.

So the number and the type of clients that the entity has

the value of the client's assets under management.

And you know also the if there's politically exposed persons,

how many politically exposed persons

there are any settler and beneficiary details.

So it's working through that data.

And then the second section turns to assess

the adequacy of the entities AML framework.

So this will look at AML training programs, risk assessments

internal and external audit arrangements.

So that will focus, you know, more so on the policies and procedures

side of things.

So I'm sure clients will be wondering, you know, how will the AML return

be distributed. How will we receive this.

So it's distributed via CIMA’s Citrix platform to the key contacts

on record for a restricted trust company or a private trust company.

So in this regard, we will be thinking about the registered office contact

or the principal office of the directors or the AMLCO,

and if any additional contacts want to be added to that list,

clients can reach out to CIMA for those additional people to be added.

But it is important to note that the invitation email

is specific to each recipients email address and can't be forwarded

or shared once that email link is received.

And finally, just an important note to flag on the AML return

is that there's no fees associated with completing or submitting the AML return.

So as I mentioned, if you have any questions

on the AML return, generally we'd be happy to assist with that.

Turning now to as updated list of approved stock exchange.

So in August 2026, CIMA added three new exchanges.

So the Bahamas International Security Exchange, the Baku

Stock Exchange and the Pakistan Stock Exchange.

But we wanted for this update to focus on

the addition of the Bahamas International Security Exchange.

And a little just to look at this in a little bit more detail.

We recently published a client update on this topic recently,

and this is a significant development for all Bahamas

International Security Stock Exchange listed entities and their groups

operating within the Cayman Islands regulatory framework.

And this is because it has two practical implications.

And the first is that it may streamline the change of control process

for these Bahamas Stock Exchange.

Bahamas International Security Exchange listed groups holding CIMA licenses.

So as many listeners will be aware that under Cayman Islands law,

any person seeking to become a controller of a CIMA

licensed entity must obtain CIMA’s written approval.

So in several cases, this requirement goes further

and will also capture

any issuance, transfer or disposal of the shares in the licensee,

whether directly or indirectly, and not just transactions

resulting in the change of control.

So this prior approval regime applies across the key

regulatory statutes, including the Banks and Trust Companies Act,

the Securities Investment Business Act, the Insurance Act, and others.

So, crucially, each of these statutes provide provides an exemption

where the licensee or the parent entity in its ownership

chain is a listed is listed on CIMA’s approved stock exchange.

So the rationale for this is straightforward that listed entities

are already subject to robust disclosure, governance, and regulatory oversight,

making additional CIMA approval unnecessary in many cases.

So where the exemption is granted, certain more limited post

transaction notifications can apply.

So now, with the addition of the Bahamas International Security exchanges,

on the approved list,

any entities listed on that exchange or whose ultimate

holding company is listed on the Bahamas

Securities Exchange, may apply for and rely

on those publicly listed exemptions.

So in practice, this can significantly streamline

not only the change of control process, but also routine share transfers

and issuances, removing the need for a case by case CIMA approval.

Sorry, I was just going to say anything that can help out with the change control

process is a good thing.

So that's Welcome. Yes.

Agreed.

And just to quickly flag the second,

potential implications

for beneficial ownership reporting.

So as an important caveat here that while the Bahamas

Securities Exchange addition to the CIMA

approved list does not automatically carry across to the registrars

separate approved list of stock exchanges under the Companies Act.

So these are separate and distinct lists.

And that extent that distinction matters because under the Beneficial Ownership

Transparency Act, Cayman Islands legal persons must identify

their register bill, beneficial owners and maintain up to date registers.

However, entities listed on approved Stock Exchange

as defined under BOTA by reference to schedule four of the Companies Act,

may qualify for a simplified reporting regime, so

and that would require disclosing only limited particulars

such as the name and jurisdiction of the exchange,

rather than full beneficial ownership information.

So this streamlined approach would reduce duplication

and and the administrative burden for the Bahamas

Securities Exchange listed entities and their subsidiaries, but

it will only become available if and when the registrar adds

the Bahamas Security Exchange to schedule four of the Companies Act.

And this is a step that we are actively monitoring at the moment.

So any questions on this, please feel free to reach out to your

to the regulatory team or your usual maples contacts.

Just very quickly, the final regulatory related update.

And there's further information available on our regulatory blog.

And this the first is in relation to CIMA’s

publish list of entities that have failed to satisfy termination requirements

389 00:22:30,248 --> 00:22:33,385 And the second is in relation to CIMA’s noncompliance.

Directors notice

A warning notice was recently issued with a long list of non-compliant directors,

so do have a look at our blog for further updates on these two matters.

Perfect.

Thank you very much, Ellen.

And I see we're a little bit over time now, so I think we'll close out.

So many thanks.

John as well.

Hope it wasn't too painful for you.

And maybe we'll get you back on another one soon.

Obviously.

To the listeners, thanks as always, and please do reach out to either of us

or your usual Maples contact if you have any further questions, and stay up to date

with the latest developments on our Regulatory Roundup blog.

Thank you everyone. Thanks for listening. Thanks.