SIBL Registered Person Managers (formerly SIBL Excluded Persons)

MG can provide a tailored solution to meet the ES Test for Cayman Islands SIBL Registered Person Managers. These services include a CIO and Employee who would undertake the following:

(i) taking decisions on the holding and selling of investments; 

(ii) calculating risk and reserves;

(iii) taking decisions on currency and hedging positions; 

(iv) preparing reports or returns, or both, to investors or the Cayman Islands Monetary Authority, or both; 

(v) dedicated office space; 

(vi) employee using your e-mail address and answering in your company name; 

(vii) website with “.ky” domain;

It is important to note that you are not another ‘client’ of MG you are actually establishing a business in the Cayman Islands and you will have a fully established business in the Cayman Islands with premises and employees. We have provided these services since 2012 in the Cayman Islands and we are perfectly placed to do so with our Class A office space. 

We offer a clear competitive combined fee for all of these services. 

Starting Point - Economic Substance

The starting point is that the ES Law applies to all companies incorporated under the Cayman Islands Companies Law or partnerships under the Partnership Law, importantly the ES Lawdoes not include an investment fund or an entity that is tax resident outside the Cayman Islands as being a ‘relevant entity’.

Under the ES Law a mutual fund licensed or registered with the Cayman Islands Monetary Authority is considered to be an investment fund and thereby exempt from the ES Law. 

However it should be noted that the ES Law definition of an investment fund is wider than under the Mutual Funds Law

Economic Substance Test

A relevant entity that conducts a relevant activity must satisfy an ES Test (“ES Test“) in relation to that relevant activity. A relevant entity satisfies the ES Test in relation to a relevant activity if the relevant entity:

  1. conducts Cayman Islands core income generating activities (“Cayman Islands CIGA“) in relation to that relevant activity;
  2. is directed and managed in an appropriate manner in the Cayman Islands in relation to that relevant activity; and
  3. having regard to the level of relevant income derived from the relevant activity carried out in the Cayman Islands:
    1. has an adequate amount of operating expenditure incurred in the Cayman Islands;
    2. has an adequate physical presence (including maintaining a place of business or plant, property and equipment) in the Cayman Islands; and
    3. has an adequate number of full-time employees or other personnel with appropriate qualifications in the Cayman Islands.

 Directed & Managed

A relevant entity is directed and managed in an appropriate manner in the Cayman Islands in relation to a relevant activity if:

  1. its board of directors, as a whole, has appropriate knowledge and expertise to discharge its duties;
  2. meetings of the board of directors are held in the Cayman Islands, with a quorum of directors present in the Cayman Islands, at adequate frequencies given the level of decision making required;
  3. minutes of the above meetings record the making of strategic decisions of the relevant entity at the meeting; and
  4. the minutes of all meetings of the board of directors and appropriate records of the relevant entity are kept in the Cayman Islands.

Satisfies the ES Test 

The TIA shall have the power, in accordance with the ES Law and the ES Guidance, to make a determination as to whether a ”relevant entity” satisfies the ES Test for any financial year. The TIA will take a principles-based approach to determining whether or not a “relevant entity” has satisfied the ES Test with respect to its “relevant activities”.