Rules and Guidelines on Market Discipline Disclosure Requirements (Pillar 3)

From the Cayman Islands Monetary Authority

The Cayman Islands Monetary Authority (“the Authority” or “CIMA”) is issuing amendments to the Rules and Guidelines on Market Discipline Disclosure Requirements (Pillar 3) (“the Rules and Guidelines”) issued on 12 November 2020 for implementation by 1 September 2021.

The Rules and Guidelines require all banks incorporated in the Cayman Islands and regulated by the Authority to publish their Pillar 3 disclosure reports on their websites at stipulated times; and ensure that the disclosures are clearly identifiable and readily available to users.

The Authority advises that the Rules and Guidelines will now be implemented in 2 phases. Phase 1 will take place over the period 1 September 2021 to 31 August 2022. In this phase, banks will be expected to submit the relevant disclosure reports to the Authority only. In phase 2, which commences on 1 September 2022, banks must publish the required disclosure reports on their websites within timelines stipulated in the measure and notify the Authority when they have done so. This decision was taken primarily to allow CIMA to assess and validate the quality of disclosures prior to publication.

The revised Rules and Guidelines issued via Extraordinary Gazette notice No. 45/ 2021 on 28 May 2021 are attached and have been posted to the Authority’s website. Revisions were made at paragraphs 4 and 14 only to clarify CIMA’s expectations regarding public disclosure, as articulated above.

Click here for the revised Basel II Rules and Guidelines – Market Discipline Disclosure Requirements (Pillar 3), which are also available on the Authority’s website at www.cima.ky

These have been published in the Cayman Islands Extraordinary Gazette No.45/2021 on 28 May 2021.