The Cayman Islands Monetary Authority ("the Authority") today announced that it expects to generate a surplus of approximately CI$ 35 million for the Cayman Islands Government ("the Government") during its upcoming financial year, which begins July 1. This figure represents the net revenue from licence fees and the investment income on currency reserves.
Authority managing director Mrs. Cindy Scotland reported this at a recent meeting of the Authority's board of directors. She also highlighted that the statutory body's operating cost of CI$ 9.4 million for the 2004/2005 fiscal year amounts to only 21% of the revenue of CI$ 44.4 million that the Authority will generate for the Government. Mrs. Scotland remarked, The Authority is exceedingly proud of the significant contribution it makes to the Government annually, which benefits the Cayman Islands community as a whole.
The board took a major decision at the meeting that is expected to result in reduced turnaround times for licence applications. It has now delegated decision-making authority to the management committee with respect to licensing and supervisory matters. The executive committee of the board will now make decisions only on enforcement actions and applications for securities investment business licences (SIBL).
The board also endorsed the Authority s 2004/2005 Work Programme. This identifies proposed guidance, procedures and related tasks for the regulatory divisions, as well as matters concerning legislative amendments, anti-money laundering and countering the financing of terrorism.
The board approved the Mutual Funds Working Group ( the Group ) report, which contains 25 recommendations, 15 of which will involve legislative changes to the Mutual Funds Law (2003 Revision). The report has been forwarded to the Financial Secretary, for consideration by Cabinet. The Group was formed under the auspices of the Authority in November 2003 and comprised senior Authority staff and representatives from the Law Society, the Cayman Islands Society of Professional Accountants, the Mutual Fund Administrators Association and the Caymanian Bar Association.
The board also noted that Cabinet has given approval for the Authority to execute memoranda of understanding with regulators in the Isle of Man, Bermuda and Panama.
In an update on the International Monetary Fund s ( the IMF ) Cayman Islands Report, Mrs. Scotland advised that the IMF had received final comments from the Authority regarding its preliminary findings, and the final Report is expected shortly.
Implementation of the business continuity strategy, designed by Deloitte in conjunction with the Authority, was approved. The contingency plan identifies areas of risk exposure, prioritises critical business processes and ascertains the Authority s minimum recovery requirements over time if the supply or renewal of financial service licences or the issue of currency is interrupted for any reason, e.g. hurricanes.
The Authority's task forces continue their work to improve the effectiveness and efficiency of the Authority. Chairman, Mr. Michael Austin commented, Our goal is to enhance the wealth and reputation of the Cayman Islands by fostering a thriving, competitive and respected financial services industry through responsive and efficient supervision.
Photo Caption:
Cayman Islands Monetary Authority board members are: (seated from left) Mr. Michael Austin, Chairman; Mrs. Cindy Scotland, Managing Director; Mr. Timothy Ridley, Deputy Chairman and (standing from left) Sir Alan Traill; Senator James Kelleher; Mr. Don Seymour; Dr. Richard Rahn; Dr. Warren Coats; and Mr. Linburgh Martin. Missing from photo is Miss Letitia Solomon.
NOTES TO EDITORS
Board meetings
The board of the Authority meets every 6 to 8 weeks. There are four standing sub-committees of the board that meet prior to board meetings to develop recommendations to the board on matters within the remit of the sub-committees. Sub-committees and their chairpersons are:
ﾷ Audit & Finance - Don Seymour (Director);
ﾷ Human Resources - Linburgh Martin (Director);
ﾷ Legal & Legislative - Timothy Ridley (Deputy Chairman);
ﾷ Policy, Strategy & Relations - Timothy Ridley (Deputy Chairman); and
ﾷ Structure & Governance - Richard Rahn (Director).
The Managing Director is a member of all sub-committees.
Funding of the Authority
The Authority as a statutory body obtains its funding by the Cayman Islands Government purchasing certain services, i.e. regulatory outputs. These outputs are related to the regulatory and currency functions of the Authority. Government purchases outputs from the regulatory and currency divisions. The price of the output is based on the cost of operating that particular division. Once these costs are determined, they are included in a Purchase Agreement between the Government and the Authority. The agreed amount becomes the budget for the Authority and its Government grant.
Executive and Management Committees
The Executive Committee of the Board is comprised of the following locally based directors:
ﾷ Michael Austin (Chairman);
ﾷ Timothy Ridley (Deputy Chairman);
ﾷ Cindy Scotland (Managing Director);
ﾷ Linburgh Martin (Director);
ﾷ Letitia Solomon (Director), and
ﾷ Don Seymour. (Director).
The Management Committee is comprised of the Ma naging Director, the heads of the regulatory divisions, the head of policy & development and the general counsel.
IMF Report
The International Monetary Fund ( the IMF ) assessed the supervision and regulation of the financial services in the Cayman Islands during its visit September 29 - October 9, 2003. Its preliminary report found good evidence of a developed compliance culture in the Islands. The Authority and the IMF have corresponded regularly regarding the initial findings in order to achieve agreement on the points raised. The final report is expected to reflect this agreement.