Securities Investment Business License
License for dealing in security tokens and conducting securities investment business activities.
Securities Investment Business Act (SIBA)
Capital Required
KYD 100,000-500,000 depending on scope
Timeline
2-4 months
Fees
KYD 2,000-5,000 application + KYD 5,000-10,000 annual
Regulatory Body
Cayman Islands Monetary Authority (CIMA)
Legislative Framework
Virtual Asset (Service Providers) Act 2020 (as amended 2024), Securities Investment Business Law, Mutual Funds Act
Last updated: June 2025
Key Requirements
Risk-based capital requirement of KYD 100,000-500,000 depending on scope and customer base size
Comprehensive investment business policies covering suitability assessments, best execution, and conflicts
Professional competency requirements with qualified representatives holding SIBA-approved certifications
Compliance officer with securities investment business experience appointed and approved by CIMA
Clear client agreements specifying investment services, fee arrangements, and complaint procedures per SIBA
Professional indemnity insurance of minimum KYD 100,000-250,000 depending on scope
Segregated client account structures for securities holdings with independent custodian arrangements
Annual compliance certifications and audited financial statements of securities operations filed
Application Process
Submit Securities Investment Business License application to CIMA specifying securities products
Provide organizational structure with compliance officer CV and securities business background
Include detailed compliance policies, client agreements, and execution procedures per SIBA
Submit evidence of risk-based capital and professional indemnity insurance certificate
CIMA review and preliminary approval confirmation if application meets SIBA requirements
Final CIMA license issuance upon confirmation of operational readiness and compliance adequacy
Expected Total Timeline
2-4 months
Ongoing Obligations
After obtaining your Securities Investment Business License, these are the continuing compliance requirements you must maintain.
Quarterly capital adequacy reports and annual independent audit by CIMA-approved auditors
Quarterly client fund reconciliation statements and certification of proper segregation and valuation
Annual fit-and-proper assessments for compliance officer and qualified representatives with updates
Annual review and update of client suitability and best execution policies with certifications
Quarterly reporting of material customer complaints and disputes with written analysis of causes
Maintain professional indemnity insurance continuously at specified minimums with annual notification
Cost Summary
Capital Requirement
KYD 100,000-500,000 depending on scope
Application & Licensing Fees
KYD 2,000-5,000 application + KYD 5,000-10,000 annual
Jurisdiction Setup Cost
$40,000-$120,000
Annual: $30,000-$80,000
Other Cayman Islands Licenses
Explore other license types available in Cayman Islands.
VASP Registration
VASP License -Custody & Trading
Mutual Fund License
Need help with Securities Investment Business License?
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