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Deregistration of Cayman Private Trust Companies and Controlled Subsidiaries

In November 2020, following an industry consultation process, the Cayman Islands Monetary Authority (the “Authority”) issued a Regulatory Procedure on the deregistration of controlled subsidiaries1 registered pursuant to the Banks and Trust Companies Act (“BTCA”) and a Rule and Regulatory Procedure on the deregistration of private trust companies2 registered pursuant to the Private Trust Companies Regulations (“PTCRs”). In each case the conditions for deregistration and the application procedure are the same; a summary of which is outlined below.

Conditions for Deregistration

A registered entity will be required to submit to the Authority a declaration signed by at least two directors (or one if there is only one) confirming that the following conditions have been met:

  1. all clients/ connected persons are informed of the closure or intended closure of the registered entity;
  2. all outstanding liabilities have been settled;
  3. all outstanding complaints against the registered entity are resolved;
  4. there are no current, pending or threatened legal proceedings against the registered entity; and
  5. the entity is not acting as trustee of any trusts.

 

To continue reading full articles in PDF format:
Deregistration of Cayman Private Trust Companies and Controlled Subsidiaries

 


Maree Martin
Counsel and Head of Knowledge Management - Cayman Islands

Cayman Islands   +1 345 814 7781


Robert Lindley
Partner, Head of Cayman & BVI Private Client & Trust

British Virgin Islands, Cayman Islands   +1 345 814 7360


Wesley O’Brien
Associate

Cayman Islands   +1 345 814 7350


1 A “controlled subsidiary” means a trust company –

  1. that is incorporated in the Islands;
  2. that is a wholly owned subsidiary of a licensee under section 6(5)(c) of the BTCA (trust business within and outside of the Islands but subject to such conditions as may be imposed by the Authority); and
  3. whose directors and senior officers are directors and senior officer of the licensee or are otherwise persons approved by the Authority as fit and proper persons to be directors and senior officer of licensees holding licences for trust business under section 6(5) of the BTCA.

2 A “private trust company” means a trust company which –

  1. is incorporated in the Islands; and
  2. conducts no trust business other than connected trust business.

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