List of Brokers with CIMA Regulation

Being regulated by CIMA (the Cayman Islands Monetary Authority) means operating under the standards of a Cayman Islands financial regulator. Established in 1997, the institution bears the responsibilities derived from the Cayman Islands Monetary Authority Law. Its regulatory framework helps ensuring the ethical code of conduct from financial companies in the country. Their subjects include banks (onshore and offshore), portfolio managers, hedge funds, fund management entities, and credit unions.

CIMA regulated forex brokers are generally operating under easier policies compared to other brokers regulated in top financial watchdogs. The Cayman Islands Monetary Authority is known for a liberal framework to give more flexibility to financial companies set up in the country. Nonetheless, CIMA is obliged to the international community for creating specific rules and regulations to at least prevent money laundering and financial crimes. Other requirements set up by CIMA are:

• Annual audits on company accounts.
• Submission of annual accounts and certificate of compliance.
• Notification to CIMA if there are changes made by the company.
• Independent audit on the internal controls of licence holders.
• Provision of current insurance details.
• Submission of monthly statements by licensed dealers/brokers.
• Adjustion of balance sheet figures on an annual basis.

What is the main purpose of CIMA?

• To regulate and supervise all financial services in the Cayman Islands.
• To ensure that regulated businesses are compliant with money laundering regulations. -To provide regulated entities with a guideline containing policies and procedures, as well as statements of principles.
• To act as an advisor for the Cayman Islands government in relation with monetary and regulatory matters.
• To manage currency reserves, issue, and redeem the Cayman Islands currency.
• To contribute in helping overseas regulatory agencies to promote the supervision of financial markets.

To ensure the safe operation of the Cayman Islands economy and protect investors from financial malpractices, CIMA has the authority to implement several guidelines in place. Involvement in any financial crimes by a member firm won't be taken lightly even though CIMA's preference to keep their policies flexible may deter them from applying strict rules to a suspected instituion. Nevertheless, CIMA ensures constant surveillance and regularly promotes sound financial system to improve confidence and trust among investors.