CIMA Chairman Speaks On Regulatory Regime

by Amanda Banks, for LawAndTax-News.com, London

19 April 2005

Speaking to the Cayman Islands Society of Professional Accountants on Friday, chairman of the Cayman Islands Monetary Authority, Timothy Ridley outlined the Authority's plans for the regulatory future of the jurisdiction.

The CIMA boss began by observing that:

"One man's sound regulation is another man's regulatory creep. Given that Cayman's regime receives criticism as too light by certain overseas regulators, international standard setters and foreign governments and as too onerous by some in the private sector, it seems likely that the balance is reasonably good."

Explaining that the Monetary Authority in 2004 established four goals, namely: to create a high quality and effective regulatory environment to attract users and providers of financial services; to operate in the most efficient way; to preserve the value and integrity of the currency; and to raise its profile in order to improve understanding of it locally and internationally, Mr Ridley went on to add that:

"CIMA is critically aware of how vital it is that the regulatory regime not only withstands international scrutiny but also nurtures and encourages a dynamic and competitive financial services industry in Cayman."

Speaking with regard to CIMA's plans for the future on a regulatory level, he revealed that steps are being taken to prepare the industry for the implementation of the Basel II capital accord next year, and that talks are taking place with the International Organisation of Securities Commissions (IOSCO) on cross-border cooperation and the perceived deficiencies in Cayman's regime when tested against IOSCO's standard.

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