The Cayman Islands Monetary Authority (CIMA) continues to strengthen its commitment to cooperating and sharing information with international regulatory counterparts; the latest establishment of formal ties being with the Comissão de Valores Mobiliários (CVM – the Securities and Exchange Commission of Brazil).
This agreement was affirmed with the signing of a Memorandum of Understanding (MoU) last week by CIMA Managing Director Cindy Scotland and Chairperson of CVM Maria Helena dos Santos Fernandes de Santana. This is the second MoU which CIMA has entered into with a Brazilian entity, having had one in place with Banco Central Do Brazil (Brazil Central Bank) since March 2006.
“CIMA is pleased to have finalised this MoU with CVM after lengthy discussions and we look forward to working with our colleagues in Brazil, engaging each other’s assistance and cooperation when the need arises. These arrangements are especially critical now in light of the global financial crisis which has, in some way, affected so many countries,” said Mrs. Scotland.
“Brazil is one of the largest emerging economies in the world – one of the BRIC nations – with significant prospects for growth and development and I believe this MoU has an important role to play in bolstering economic opportunities between Cayman and Brazil.”
Established in December 1976, CVM is a federal agency linked to the Ministry of Finance. Among other responsibilities, its mandate is to: assure proper functioning of the exchange and over-the-counter markets; protect all securities holders against fraudulent issues and illegal actions performed by company managers, controlling shareholders, or mutual fund managers; promote the expansion and efficiency of the securities market and the capitalisation of Brazilian publicly-held companies; and assure public access to all relevant information about the securities traded and the companies which have issued them.
CIMA and CVM had been deliberating a MoU since late 2007 and, in December 2008, a CIMA delegation travelled to Brazil as part of a relationship-building visit with Deloitte and the Cayman Islands Financial Services Association. There, they met with CVM officials for further discussions which ultimately led to agreement on the MoU.
In addition to CVM and the Brazil Central Bank, CIMA has MOUs and other information-exchange agreements with financial regulators in Jersey, Canada, the U.S.A. (the Securities and Exchange Commission and the Commodity Futures Trading Commission), the U.K. (the Financial Services Authority), the Isle of Man, Bermuda, Jamaica, and Panama. There is also a multi-lateral MOU with eight Caribbean regulators. All the agreements can be viewed in the Regulatory Framework / International Agreements section of CIMA’s website: http://www.cimoney.com.ky/section/regulatoryframework/default.aspx?id=150.