Amendment Intended to Attract Investment and Benefit Clients
By giving institutional investors more investment options, the Insurance (Amendment) Bill, 2022 is intended to strengthen the Cayman Islands’ position in international reinsurance and domestic insurance.
Minister of Financial Services and Commerce, the Hon. André Ebanks, will bring the amendment to the Cayman Islands Parliament during its third meeting of the 2021-2022 session, which will begin on Wednesday, 8June.
He also will present the Public Recorder (Amendment) Bill, 2022; and table the Auditors Oversight Authority’s Annual Report for the Year Ended 31 December 2021, and Audited Financial Statements for the year ended 31 December 2021.
Minister Ebanks said the insurance amendment proposes to introduce capital redemption contracts.
These products are issued by insurance companies with fixed maturities and fixed interest rates; however, payout of the contract is not based upon the mortality of a particular person. Their key feature is that they diversify funding sources and reduce overall costs of funds for large insurance and reinsurance carriers.
Because capital redemption contracts would be underwritten by insurers, it would be regulated by the Cayman Islands Monetary Authority, Minister Ebanks said. Also, in the case of insolvency of the insurance company, contract holders would have the same protection as insurance holders.
Capital redemption contracts already are available in the UK, EU, US and Bermuda; in some jurisdictions, they are known as funding agreements. The Cayman Islands product stems from a Financial Services Legislative Committee (FSLC) proposal for Government to diversify the Islands’ insurance and reinsurance sector.
The FSLC was established by Government. Its members are local financial services industry representatives, and representatives from the Ministry of Financial Services and Commerce. The FSLC proposes enhancements to the Cayman Islands financial services regime, for Government’s consideration and potential action.
Public Recorder (Amendment) Bill, 2022
Minister Ebanks also will present the Public Recorder (Amendment) Bill, 2022.
Part of a Government-wide initiative to ease the financial burden on senior citizens, the bill proposes to allow persons 65 years and older to pay $50 to submit a deed poll to General Registry, rather than the $100 fee currently prescribed by law. Deed polls, which are legal documents that formally request a change to a person’s name, are handled by General Registry.
Auditors Oversight Authority (AoA) reports
Minister Ebanks will table the Auditors Oversight Authority’s Annual Report for the Year Ended 31 December 2021; and Audited Financial Statements for the year ended 31 December 2021.
The AoA, which is independent of the accounting and auditing profession, regulates and supervises auditors of market-traded companies. As with other similar bodies around the world, the AOA’s mission is to contribute to public confidence in the integrity of financial reporting, through its oversight activities. It is a member of the International Forum of Independent Audit Regulators.
Issued by: The Ministry of Financial Services and Commerce (CIG)