(CNS): The Cayman Islands Monetary Authority has said that a Privy Council decision last month has confirmed the regulator’s powers to compel non-licensee Cayman Islands registered firms to give up information on behalf of other overseas regulators under the authority’s 2018 Law. According to a press release from CIMA, the Judicial Committee of the London-based court refused Select Vantage Inc.’s application to appeal a decision of the Cayman Islands Court of Appeal, which had found in CIMA’s favour last year.
“In refusing Select Vantage Inc.’s application, at the very first stage, the Privy Council has effectively and clearly affirmed the Court of Appeal’s earlier ground-breaking decision regarding CIMA’s powers. This decision acknowledges that CIMA has powers to obtain information from a non-licensee Cayman Islands registered company on behalf of another overseas regulator under the Monetary Authority Law 2018,” the local regulator said.
Select Vantage Inc. is a Cayman Islands registered exempt company operating as a proprietary trading firm, which currently is not a licensee of CIMA. It was under investigation by the Australian Securities and Investments Commission (ASIC) for potential market manipulation and CIMA sought information for that regulator.
In 2017 Australian officials asked CIMA for information about the company for its investigations and CIMA obtained a Grand Court order obliging Select Vantage to hand over details of its traders. The firm challenged the order, arguing among other things that it was just a subsidiary and did not have the details requested. But the Cayman Islands Court of Appeal found in CIMA’s favour and rejected Select Vantage’s claims.
CIMA Managing Director Cindy Scotland noted the importance of the Privy Council’s decision and the affirmation of the authorities powers “to require information and documents in response to a proper request from an overseas regulatory authority whether the company or companies involved are licensed by CIMA or not”.