Overall Rating: ★★☆☆☆ (2.9/5)

The Cayman Islands Monetary Authority (CIMA) is the primary financial regulator of the Cayman Islands, a well-known offshore financial centre. CIMA supervises banking, insurance, mutual funds, and securities investment business — including forex and CFD brokers operating under its jurisdiction. While more structured than other offshore regulators, CIMA is still considered Tier-3 due to limited retail investor protections and a focus on corporate compliance rather than strict trading conduct enforcement.

Forex brokers must apply for a Securities Investment Business Licence (SIBL) under the Securities Investment Business Act, which requires:

• Incorporation in the Cayman Islands
• Appointment of local directors or agents
• Submission of business plans, compliance policies, and capital adequacy declarations
• Ongoing financial reporting and audits

However, CIMA:

• Does not impose leverage restrictions
• Does not prohibit bonuses or aggressive promotions
• Does not offer an investor compensation scheme
• Has a limited track record of public enforcement or broker sanctions

Client fund protection requirements are vague, and while CIMA encourages responsible conduct, oversight of trading conditions and customer treatment is minimal. Brokers licensed in the Cayman Islands are typically international brands seeking regulatory flexibility and lower barriers than those imposed by FCA, ASIC, or ESMA.

CIMA maintains a public register of licensees, which improves transparency, but offers limited recourse for retail clients in the event of misconduct. For traders, CIMA regulation is only advisable when used alongside a broker’s Tier-1 licences elsewhere.