Monetary Authority Act (2020 Revision)

CAYMAN ISLANDS Monetary Authority Act (2020 Revision) MONETARY AUTHORITY (ADMINISTRATIVE FINES) REGULATIONS (2022 Revision) Supplement No. 7 published with Legislation Gazette No. 5 of 25th January, 2022 . PUBLISHING DETAILS Revised under the authority of the Law Revision Act (2020 Revision). The Monetary Authority (Administrative Fines) Regulations, 2017 made the 15th December, 2017, as amended by the Cayman Islands Constitution (Amendment) Order 2020 (UKSI 2020 No. 1283) and the Citation of Acts of Parliament Act, 2020 [Act 56 of 2020], and consolidated with — Monetary Authority (Administrative Fines) (Amendment) Regulations, 2018 made 13th March 2018 Monetary Authority (Administrative Fines) (Amendment) Regulations, 2020 made 24th June 2020 Monetary Authority (Administrative Fines) (Amendment) (No. 2) Regulations, 2020 made 27th October 2020 Monetary Authority (Administrative Fines) (Amendment) (No. 3) Regulations, 2020 made 8th December 2020. Originally enacted — Act 56 of 2020-7th December, 2020. Originally made — U.K. Order 2020-11th November, 2020 Consolidated and revised this 31st day of December, 2021. Note (not forming part of this Act): This revision replaces the 2019 Revision which should now be discarded Page 2 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) Arrangement of Regulations CAYMAN ISLANDS Monetary Authority Act (2020 Revision) MONETARY AUTHORITY (ADMINISTRATIVE FINES) REGULATIONS (2022 Revision) Arrangement of Regulations Regulation Page PART 1 - PRELIMINARY 1. Citation ......................................................................................................................................7 2. Definitions ..................................................................................................................................7 PART 2 - PRESCRIBED MATTERS Breaches and their categories 9 3. Breach of prescribed provisions to be proceeded with under Part VI of the Monetary Authority Act (2020 Revision) .....................................................................................................9 Discretionary fine criteria 9 4. When the criteria apply ..............................................................................................................9 5. General criteria in relation to both fine and amount ....................................................................9 6. Additional criteria in relation to fine amount .............................................................................. 10 7. Power to discount usual fine to reflect agreement .................................................................... 11 Forms 11 8. Prescribed forms ..................................................................................................................... 11 c Revised as at 31st December, 2021 Page 3 Arrangement of Regulations Monetary Authority (Administrative Fines) Regulations (2022 Revision) PART 3 - FINE PROCESS General 11 9. Steps required ......................................................................................................................... 11 10. General provisions in relation to fine and breach notices ......................................................... 12 Breach notice and reply 12 11. Requirements for breach notice ............................................................................................... 12 12. Duty to consider reply .............................................................................................................. 13 13. Rectification of a breach subject to a fixed fine ........................................................................ 13 Imposing a fine 14 14. Decision about fine .................................................................................................................. 14 15. Requirements for fine notice .................................................................................................... 14 PART 4 - REVIEWS AND APPEALS Internal review of fixed fines by the Authority 15 16. Application to Management Committee for review ................................................................... 15 17. No stay of original decision ...................................................................................................... 15 18. Management Committee decision on application for review ..................................................... 15 Appeal against discretionary fines to Grand Court 16 19. Application to the Grand Court for leave to appeal ................................................................... 16 20. Application of Grand Court Rules and practice directions about judicial reviews ...................... 16 21. Security for costs ..................................................................................................................... 16 22. Stay of original decision only by application ............................................................................. 16 23. Hearing and outcome .............................................................................................................. 17 PART 5 - PAYMENT AND ENFORCEMENT 24. Fine is a debt to the Crown ...................................................................................................... 17 25. Interest on fines ....................................................................................................................... 18 26. Payment of more than one fine ................................................................................................ 18 27. Enforcement ............................................................................................................................ 18 PART 6 - MISCELLANEOUS 28. Electronic notices by the Authority ........................................................................................... 18 29. Evidentiary provisions .............................................................................................................. 19 30. Consultation requirements before issuing rules ........................................................................ 19 31. Transitional provision ............................................................................................................... 20 SCHEDULE 1 21 PRESCRIBED PROVISIONS AND BREACH CATEGORIES 21 1 - Anti-Money Laundering Regulations 21 2 - Banks and Trust Companies Act 27 3 - Private Trust Companies Regulations 38 4 - Building Societies Act 42 Page 4 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) Arrangement of Regulations 5 - Companies Management Act 46 6 - Cooperative Societies Act 52 7 - Development Bank Act 57 8 - Directors Registration and Licensing Act 60 9 - Insurance Act 65 10 - Insurance (Capital and Solvency) (Class A Insurers) Regulations 77 11 - Insurance (Capital and Solvency) (Classes B, C, and Insurers) Regulations 81 12 - Monetary Authority Act 82 13 - Rule on Internal Controls 82 14 - Rule on the Cancellation of a Licence or Certificate of Registration 83 15 - Rule on Country and Transfer Risk Management for Banks 84 16 - Rule on Corporate Governance for Insurers 85 17 - Rule on the Segregation of Assets 92 18 - Rule on the Management of Credit Risks and Problem Assets 94 19 - Rule on Interest Rate Risk Management for Banks 105 20 - Rule on the Contents of Offering Documents 106 21 - Rule on Large Exposures and Credit Risk Concentration for Banks 106 22 - Rule on the Calculation of Asset Values 111 23 - Liquidity Risk Management Rules and Guidelines 114 24 - Rule on Market Conduct – Insurers, Agents and Brokers 120 25 - Rule on Operational Risk Management for Banks 138 26 - Leverage Ratio Rules and Guidelines 139 27 - Rules on Investments, Securities and Derivatives Risk Management for Banks 140 28 - Money Services Act 141 29 - Mutual Funds Act 148 30 - Mutual Funds (Annual Returns) Regulations 157 31 - Mutual Funds (EU Connected Fund (Alternative Investment Fund Managers Directive)) Regulations 157 32 - Private Funds Act 162 33 - Securities Investment Business Act 170 34 - Securities Investment Business (Conduct of Business) Regulations 175 35 - Securities Investment Business (EU Connected Fund (Alternative Investment Fund Managers Directive)) Regulations 191 36 - Securities Investment Business (Financial Requirements and Standards) Regulations 196 37 - Securities Investment Business (Registration and Deregistration) Regulations 198 38 - Virtual Assets (Service Providers) Act 202 SCHEDULE 2 208 PRESCRIBED FORMS 208 PART 1 - BREACH AND FINE NOTICES 208 FORM 1 208 BREACH NOTICE FOR PROPOSED FIXED FINE 208 c Revised as at 31st December, 2021 Page 5 Arrangement of Regulations Monetary Authority (Administrative Fines) Regulations (2022 Revision) FORM 2 210 BREACH NOTICE FOR PROPOSED DISCRETIONARY FINE 210 FORM 3 211 FINE NOTICE FOR FIXED FINE 211 FORM 4 213 FINE NOTICE FOR FIXED FINE (CONTINUING) 213 FORM 5 215 FINE NOTICE FOR DISCRETIONARY FINE 215 PART 2 - REVIEWS AND APPEALS 217 FORM 6 217 APPLICATION TO REVIEW FIXED FINE 217 FORM 7 219 REVIEW DECISION FOR FIXED FINE 219 PART 3 - ENFORCEMENT 220 FORM 8 220 CERTIFICATE OF FINE AND INTEREST OWING 220 ENDNOTES 223 Table of Legislation history: ............................................................................................................. 223 Page 6 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) Regulation 1 CAYMAN ISLANDS Monetary Authority Act (2020 Revision) MONETARY AUTHORITY (ADMINISTRATIVE FINES) REGULATIONS (2022 Revision) PART 1 - PRELIMINARY 1. Citation 1. These Regulations may be cited as the Monetary Authority (Administrative Fines) Regulations (2022 Revision). 2. Definitions 2. In these Regulations — “appeal” means an appeal for which leave is granted by the Grand Court under regulation 19 and any further appeals relating to the decision on such an appeal; “breach notice” means a notice complying with regulation 11 of the Authority’s intention to impose a fine, issued by the Authority to a party that the Authority believes has breached a prescribed provision; “discretionary fine” means — (a) a proposed fine for which the Authority has fine discretions; or (b) a fine that the Authority exercised fine discretions to impose; c Revised as at 31st December, 2021 Page 7 Regulation 2 Monetary Authority (Administrative Fines) Regulations (2022 Revision) “discount agreement” means an agreement in principle between the Authority and a party that has breached a prescribed provision about the amount of a proposed discretionary fine; “fine discretions” means the Authority’s discretions under section 42B(5) of the Monetary Authority Act (2020 Revision) about whether or not to impose a fine or its amount; “fine notice” means a notice complying with regulation 15 issued by the Authority to a party that has breached a prescribed provision of the fine; “fixed fine” means a fine referred to in section 42B(1) of the Monetary Authority Act (2020 Revision); “fixed fine (continuing)” means a fine referred to in section 42B(2) of the Monetary Authority Act (2020 Revision); “give”, in relation to a notice or information, includes to deliver, provide, send or transmit the notice or information; “interest” means interest accrued or accruing on a fine under regulation 25; “notice” means written information given, or to be given, electronically or by another mode of communication; “original decision” means the Authority’s decision — (a) in relation to a fixed fine or fixed fine (continuing), to impose the fine; or (b) in relation to a discretionary fine, to impose the fine, about its amount, or both; “party”, in relation to a provision of these Regulations about a breach, fine or proposed fine, means the person on whom the fine has been imposed or is being proposed or considered to be imposed; “rectification notice” means a notice to the Authority by a party that has breached a prescribed provision that the breach was rectified within thirty days after the party received the breach notice; “reply” means a notice to the Authority by a party who has received a breach notice, making representations opposing the Authority’s proposed action to impose a fine; “reply period” means a period stated in a breach notice within which the party who received the notice may give a reply to the Authority; “stayed”, in relation to a fine, means that the fine may not be imposed because of the operation of an order under regulation 22(2); and “winding up notice” means a demand under section 93(a) of the Companies Act (2022 Revision) as it applies under a law of the Islands or a similar demand under the legislation of another jurisdiction. Page 8 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) Regulation 3 PART 2 - PRESCRIBED MATTERS Breaches and their categories 3. Breach of prescribed provisions to be proceeded with under Part VI of the Monetary Authority Act (2020 Revision) 3. (1) The breach of a prescribed provision set out in column 2 of Schedule 1 of the Act, Regulation, or Rule set out in column 1 of that Schedule may be proceeded with under Part VIA of the Act. (2) In relation to proceedings under Part VIA of the Monetary Authority Act (2020 Revision), each breach of a prescribed provision is classified in column 4 of Schedule 1 as minor, serious or very serious. (3) Where there is an inconsistency between the description of a breach set out in Column 3 of Schedule 1 and the prescribed provision referred to in Column 2 of Schedule 1, the prescribed provision referred to in Column 2 shall prevail. (4) It shall not be a defence for a person who is the subject of an administrative fine under these Regulations to show that the description set out in Column 3 of Schedule 1 is inconsistent with the prescribed provision referred to in Column 2 of Schedule 1. Discretionary fine criteria 4. When the criteria apply 4. Regulations 5 and 6 prescribe, in relation to section 42F(1)(a) of the Monetary Authority Act (2020 Revision), criteria for exercising fine discretions when — (a) issuing breach notices; (b) considering or reconsidering matters under regulations 12(2) or 23(2)(b); and (c) imposing discretionary fines. 5. General criteria in relation to both fine and amount 5. (1) The criteria referred to in regulation 4 are — (a) the nature and seriousness of the breach; (b) the degree of the party’s inadvertence, intent or negligence in committing the breach; (c) if the breach is a continuing one, its duration; (d) the measures or precautions the party took to prevent the breach; (e) the measures or precautions that a reasonable person in the party’s position, acting prudently and exercising due diligence, would have taken to prevent the breach; c Revised as at 31st December, 2021 Page 9 Regulation 6 Monetary Authority (Administrative Fines) Regulations (2022 Revision) (f) whether or not the breach was due to — (i) reasonable reliance on information given to the party; or (ii) a cause beyond the party’s control, including, for example, someone else’s act or default or an accident; (g) the degree of difficulty in detecting the breach; (h) evidence of intent by the party to conceal the breach or mislead the Authority; (i) the party’s conduct after becoming aware of the breach, including, for example — (i) whether and how quickly the party brought the breach to the Authority’s attention; and (ii) the party’s efforts to remedy the breach or prevent its reoccurrence; (j) any financial or other damage or loss or other harm done or caused by the breach, including, for example, to — (i) the party’s creditors, customers, investors, policyholders or shareholders; (ii) financial markets; or (iii) the performance of the Authority’s functions; (k) whether, before or after the breach, there was a change to the party’s business or affairs that affects or may affect the consequences of the breach for the party, including, for example, the party’s ability to pay a fine; (l) if the Authority has imposed a fine on the party in similar circumstances to the breach, the amount of that fine; and (m) the party’s history of compliance, in the five years before the breach, with the Anti-Money Laundering Regulations (2020Revision) and similar laws in other jurisdictions. (2) In considering the party’s history of compliance, regard need only be had to the party’s compliance with, and breaches of, those laws of which the Authority is aware or is made aware by the party. (3) Paragraph (2) applies even if no punishment was imposed or no other action relating to the breach was taken under those laws. 6. Additional criteria in relation to fine amount 6. In deciding the amount of a fine, the criteria also include — (a) the following in relation to the party — (i) any circumstances of mitigation that may exist; (ii) resources and ability to pay; and (iii) financial hardship; Page 10 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) Regulation 7 (b) potential adverse financial consequences on third parties of imposing a fine in the amount proposed; and (c) a circumstance that aggravates, or may tend to aggravate, the breach or its effects. 7. Power to discount usual fine to reflect agreement 7. (1) The Authority may, but need not, negotiate with a party to attempt to reach a discount agreement with the party, whether or not the Authority has given a breach notice. (2) Subject to paragraph (3), the Authority may discount the usual fine to reflect the fact of the discount agreement and the stage in the fine process under Part 3 at which the agreement was reached. (3) The Authority shall not discount any component of the usual fine that represents the application of the disgorgement principle under section 42F of the Monetary Authority Act (2020 Revision). (4) In this regulation, “usual fine” means the amount of the fine the Authority decided, or would otherwise have decided — (a) before taking into account the discount agreement; and (b) after considering — (i) all factors and criteria and the order of importance under section 42F of the Monetary Authority Act (2020 Revision); and (ii) the criteria prescribed in regulations 5 and 6. Forms 8. Prescribed forms 8. Schedule 2 prescribes forms for use, subject to regulation 10, under these Regulations. PART 3 - FINE PROCESS General 9. Steps required 9. (1) The Authority may only impose a fixed fine or discretionary fine by taking the following steps — (a) giving the party a breach notice; (b) if regulation 12 or 13 applies, complying with that regulation; and (c) giving the party a fine notice. (2) However, the following exceptions apply in relation to discretionary fines — c Revised as at 31st December, 2021 Page 11 Regulation 10 Monetary Authority (Administrative Fines) Regulations (2022 Revision) (a) if the party entered into a discount agreement for the breach and the fine is no more than the amount agreed under the agreement, a fine notice may be given without first giving a breach notice; and (b) if, under regulation 23(2), a fine is varied on appeal, the steps do not apply to the fine as varied. (3) The Authority may only impose a fixed fine (continuing) — (a) by giving the party a fine notice; and (b) if the relevant fixed fine is not stayed. (4) A decision relating to the imposition of a fixed fine, a fixed fine (continuing) or a discretionary fine need only be made on the balance of probabilities. 10. General provisions in relation to fine and breach notices 10. The following apply in relation to a breach notice or fine notice — (a) it is not mandatory to use the prescribed form under Schedule 2; (b) the notice may be in another form that substantially complies with the relevant requirements under this Part; (c) the notice is deemed to comply with those requirements if — (i) its form appears to follow the prescribed form; and (ii) it has been completed, or substantially completed, in the way required by the prescribed form; and (d) if the notice contains an inaccuracy, it is only invalid because of the inaccuracy if the party establishes that the inaccuracy was material and it misled the party. Breach notice and reply 11. Requirements for breach notice 11. (1) A breach notice shall be dated and state all of the following — (a) the party’s name; (b) that the Authority proposes to impose a fine on the party for a specified breach that it believes the party committed; (c) the prescribed provision for which the fine is proposed to be imposed; (d) the nature of the specified breach; (e) a summary of the facts and circumstances that the Authority believes constituted the specified breach; (f) either — (i) in relation to a fixed fine, that the fine is fixed at five thousand dollars; or Page 12 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) Regulation 12 (ii) in relation to a discretionary fine, the fine the Authority proposes for the specified breach; (g) that the party may give the Authority a reply within the reply period; and (h) that, for a fixed fine, the party may give the Authority a rectification notice. (2) The reply period is required to end at least thirty days after the giving of the breach notice. 12. Duty to consider reply 12. (1) This regulation applies only if — (a) a breach notice has been given for a fixed fine, fixed fine (continuing) or discretionary fine; (b) the reply period has ended; and (c) a reply has been given. (2) The Authority has a duty to — (a) reconsider whether it still holds the belief stated in the breach notice, in the light of all matters raised in the reply concerning that belief; and (b) if the notice was for a discretionary fine, consider the matters raised in the reply to the extent they are relevant to exercising fine discretions. 13. Rectification of a breach subject to a fixed fine 13. (1) This regulation applies only if — (a) a breach notice has been given for a fixed fine; (b) the party subject to the breach notice rectified the breach specified in the notice within thirty days of receiving the notice; (c) the reply period has ended; and (d) a rectification notice has been given. (2) The Authority has a duty to consider, in light of the matters raised in the rectification notice, whether the specified breach was rectified within thirty days of the issue of the breach notice to its satisfaction. (3) If the Authority is satisfied that the breach was rectified as described in paragraph (2) and, in the case of the breach of a filing requirement that the party has requested a filing extension and paid any applicable filing extension fees, the Authority shall — (a) refrain from issuing a fine notice or imposing a fine on the party for the breach; and (b) give the party notice of its decision in accordance with regulation 14(6). c Revised as at 31st December, 2021 Page 13 Regulation 14 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Imposing a fine 14. Decision about fine 14. (1) This regulation applies at the end of the reply period in relation to a breach notice if — (a) no reply has been given; (b) a reply has been given and the Authority has complied with regulation 12; or (c) a rectification notice has been given and the Authority has complied with regulation 13. (2) If the breach notice was for a fixed fine or fixed fine (continuing) and the Authority still holds the belief stated in the notice and is not satisfied that the breach was rectified within thirty days of the issue of the notice, the Authority is required to impose the fine. (3) If the notice was for a discretionary fine, the fine discretions may be exercised. (4) The amount of a discretionary fine shall not be more than the amount stated in the notice. (5) If the Authority imposes a fine, it may decide that the fine is payable immediately on the giving of a fine notice or within a particular period after that time. (6) If the Authority decides not to impose any fine, it is required to give the party notice of the decision within fifteen days after the end of the reply period. 15. Requirements for fine notice 15. (1) A fine notice is required to be dated and state all of the following — (a) the party’s name; (b) that the Authority has imposed a specified fine on the party; (c) the amount of the fine; and (d) when the fine is required to be paid. (2) If the specified fine is a fixed fine, the fine notice shall state — (a) the prescribed provision for which the fine is imposed; (b) a description of the breach; (c) if a reply was given during the reply period, the reasons why the Authority still holds the belief stated in the breach notice; (d) if a rectification notice was given within the reply period, the reasons why the Authority is not satisfied that the breach was rectified within thirty days of the issue of the breach notice; and Page 14 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) Regulation 16 (e) that the party may, within thirty days after receiving the fine notice, apply to the Management Committee to review the decision to impose the fine. (3) If the specified fine is a fixed fine (continuing), the fine notice shall state — (a) the date of the fine notice given for the relevant fixed fine; and (b) that the party may, within thirty days after receiving the fine notice, apply to the Management Committee to review the decision to impose the fine. (4) If the specified fine is a discretionary fine, the fine notice shall state — (a) the prescribed provision for which the fine is imposed; (b) a description of the breach; (c) the reasons for the way in which fine discretions were exercised; and (d) that the party may, within thirty days after receiving the fine notice apply to the Grand Court for leave to appeal against the decision to impose the fine, its amount or both. PART 4 - REVIEWS AND APPEALS Internal review of fixed fines by the Authority 16. Application to Management Committee for review 16. (1) A party that has received a fine notice for a fixed fine or fixed fine (continuing) may apply to the Authority for its Management Committee to review the original decision. (2) An application under this regulation shall be made in the prescribed form, within thirty days after receiving the notice. 17. No stay of original decision 17. A review does not stay the operation of the original decision. 18. Management Committee decision on application for review 18. (1) The Management Committee shall, within twenty days after receiving an application for review, reconsider the original decision and decide whether to affirm it or set it aside. (2) The Management Committee shall, within ten days after making a decision on the application, give the party notice of its decision. (3) If the decision is to affirm the original decision, the notice of the decision on the application for review shall also state — (a) the reasons for the decision; and c Revised as at 31st December, 2021 Page 15 Regulation 19 Monetary Authority (Administrative Fines) Regulations (2022 Revision) (b) that the party may apply to the Grand Court for judicial review of the decision. (4) If the decision is to set aside the original decision, it is deemed never to have been made. (5) The Supervisory Head of the division of the Authority that made the original decision may make written representations to the Management Committee concerning an application for review of the original decision, but shall not otherwise participate in any discussion, decision, debate or vote of the Management Committee concerning the review. Appeal against discretionary fines to Grand Court 19. Application to the Grand Court for leave to appeal 19. (1) A party that receives a fine notice for a discretionary fine may apply to the Grand Court for leave to appeal against the original decision within thirty days after receiving the notice. (2) The Grand Court may only grant leave to appeal under this regulation if — (a) the party has grounds for seeking judicial review of the decision; or (b) the decision was made with a lack of proportionality or was not rational. (3) Notwithstanding paragraph (1), a party may not apply for leave to appeal against the original decision if the party entered into a discount agreement for the breach and the fine is no more than the amount agreed to. 20. Application of Grand Court Rules and practice directions about judicial reviews 20. (1) The Grand Court Rules (2022 Consolidation) and the Court’s practice directions about judicial reviews apply to an appeal, with necessary changes, as if the appeal were an application for judicial review. (2) Notwithstanding paragraph (1), the Court’s rules about alternative dispute resolution do not apply to the appeal. 21. Security for costs 21. The Authority may apply to the Grand Court — (a) for an order that the appellant provide sufficient security for costs; and (b) for a stay of the appeal proceedings until such security is provided. 22. Stay of original decision only by application 22. (1) An appeal does not stay the operation of the original decision. Page 16 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) Regulation 23 (2) However, the Grand Court may, on the appellant’s application, order that the fine imposed by the original decision be stayed to secure the effectiveness of the appeal. (3) The stay ordered by the Grand Court — (a) may be given on conditions that the Court considers appropriate; (b) operates for the period fixed by the Court; and (c) may be amended or revoked by the Court. (4) The period of a stay shall not extend past when the Grand Court decides the appeal. 23. Hearing and outcome 23. (1) An appeal may only be decided on the evidence on which the Authority exercised the relevant fine discretions. (2) After hearing an appeal, the Grand Court may — (a) affirm, set aside or vary the original decision; or (b) set aside the original decision and remit the matter to the Authority for it to reconsider subject to such directions as the Court considers fit. (3) The following apply if the Grand Court’s decision is to affirm the original decision or to vary it in a way that a fine is still imposed — (a) the Court’s decision is (other than in relation to regulations 9, 16 and 19) deemed to have always been the original decision; (b) the Court may, at the Authority’s request, give judgment against the party for all or any part of the fine that continues to be owing, and for interest; and (c) the Authority’s request may be made during the appeal, when the Court’s decision is handed down or at any later time on the tendering of a certificate under regulation 29(3)(d) about the amount owing. (4) If the Grand Court’s decision is to set aside and not to remit the matter to the Authority for reconsideration — (a) both the fine and interest are deemed to have never been owing; and (b) any fixed fine (continuing) imposed for the breach is deemed to have also been set aside and to have never been owing. PART 5 - PAYMENT AND ENFORCEMENT 24. Fine is a debt to the Crown 24. (1) A fine becomes a debt owing to the Crown on the day the fine was required to be paid under the relevant fine notice. c Revised as at 31st December, 2021 Page 17 Regulation 25 Monetary Authority (Administrative Fines) Regulations (2022 Revision) (2) Paragraph (1) is subject to any setting aside or variation of the fine on a review applied for under regulation 16 or an appeal. 25. Interest on fines 25. (1) Interest of five percent a year accrues while all or any part of a fine continues to be owing, starting on the day immediately after the fine becomes a debt to the Crown and ending on the day the fine is paid in full, both days inclusive. (2) The interest accrues daily and as compound interest. (3) The interest is also a debt owing to the Crown. (4) The accruing of interest applies even while the fine is stayed. (5) Payments relating to the fine are to be applied to the interest first. (6) This regulation is subject to any setting aside or variation of the fine in a review applied for under regulation 16 or an appeal. 26. Payment of more than one fine 26. If more than one fine has been imposed on a party, payments for the fines are to be applied in the order in which the fines and interest became owing. 27. Enforcement 27. (1) The Crown may recover in a civil proceeding, as a debt, the unpaid amount of a fine or interest, or both. (2) However, paragraph (1) does not apply while the fine is stayed. (3) A proceeding to recover a debt under this regulation does not prevent — (a) interest continuing to accrue on the total owing; or (b) if the party is a body corporate, the Crown enforcing the fine by serving a winding up notice for the debt. PART 6 - MISCELLANEOUS 28. Electronic notices by the Authority 28. (1) The Authority may give a party a notice for any purpose of these Regulations by sending it to an email address that the party last gave the Authority notice of, as follows — (a) the party’s email address; (b) if the party is a body corporate (either in its own right or as a trustee of a trust), the email address of — (i) any of its directors or members; or (ii) its registered office provider; or Page 18 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) Regulation 29 (c) if the party is a partnership, the email address of — (i) any of its partners; or (ii) its registered office provider (if it has a registered office). (2) In this regulation — “partners” does not include a limited partner of a limited partnership; and “registered office provider” means the person who provides or maintains the party’s registered office as required under a Law. 29. Evidentiary provisions 29. (1) This regulation applies to a proceeding under Part VIA of the Monetary Authority Act (2020 Revision), including a review applied for under regulation 16, an appeal, a proceeding referred to in regulation 26 and a proceeding resulting from the giving of a winding up notice for a fine or interest. (2) A signature purporting to be the signature of the managing director or anyone else acting on the Authority’s behalf is evidence of the signature it purports to be. (3) A certificate signed, or purporting to be signed, by the managing director or the managing director’s delegate stating a matter as follows is evidence of that matter — (a) that a stated document is a copy of a notice given under these Regulations; (b) that an email address stated in the copy was, when the notice was given to its stated recipient, the recipient’s email address under regulation 28; (c) that on a stated day the recipient was given the notice in a stated way; (d) that a fine or interest of a stated amount, or both, are owing to the Crown by a stated person; or (e) that stated terms are the terms of a discount agreement. (4) For section 17 of the Electronic Transactions Act (2003 Revision), a certificate under paragraph (3)(b) is evidence that the notice was electronically given to its recipient at the time of giving stated in the notice. 30. Consultation requirements before issuing rules 30. Before issuing rules under section 42G of the Monetary Authority Act (2020 Revision), the Authority shall carry out private sector consultation and consult the Minister charged with responsibility for Financial Services about the proposed rules. c Revised as at 31st December, 2021 Page 19 Regulation 31 Monetary Authority (Administrative Fines) Regulations (2022 Revision) 31. Transitional provision 31. The Authority shall not impose a fixed fine, fixed fine (continuing) or a discretionary fine or take any steps to do so under Part 3 in respect of the breach of a prescribed provision that took place before the 15th December, 2017 or within ninety days after that date. Page 20 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 SCHEDULE 1 (regulation 3) PRESCRIBED PROVISIONS AND BREACH CATEGORIES Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 1 - Anti-Money Laundering Regulations 1. Anti-Money Laundering Regulations (2020 REVISION) Anti-Money 5(a) A person carrying out relevant financial business, Serious Laundering forming a business relationship or carrying out a one- Regulations off transaction without maintaining the procedures set (2020 Revision) out in subparagraphs (i) to (ix). Anti-Money 5(b) A person carrying out relevant financial business, Very serious Laundering forming a business relationship or carrying out a one- Regulations off transaction without complying with the identification (2020 Revision) and record-keeping requirements of Parts IV and VIII. Anti-Money 5(c) A person carrying out relevant financial business, Serious Laundering forming a business relationship or carrying out a one- Regulations off transaction without taking appropriate measures (2020 Revision) from time to time for the purpose of making employees aware of — (a) the procedures under paragraph (a) which are maintained by the person and which relate to the relevant financial business in question; and (b) the enactments relating to money laundering, terrorist financing, proliferation financing and targeted financial sanctions. Anti-Money 5(d) A person carrying out relevant financial business, Serious Laundering forming a business relationship or carrying out a one- Regulations off transaction without providing employees from time (2020 Revision) to time with training in the recognition and treatment of transactions carried out by, or on behalf of, any person who is, or appears to be, engaged in money laundering, c Revised as at 31st December, 2021 Page 21 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule terrorist financing or proliferation financing, or whose assets are subject to targeted financial sanctions applicable in the Islands. Anti-Money 5(e) A person carrying out relevant financial business, Serious Laundering forming a business relationship or carrying out a one- Regulations off transaction without designating an Anti-Money (2020 Revision) Laundering Compliance Officer. Anti-Money 10 A person carrying out relevant financial business, Very serious Laundering keeping anonymous accounts or accounts in fictitious Regulations names. (2020 Revision) Anti-Money 36 A payment service provider of a payer — Serious Laundering (a) not ensuring that transfers of funds are Regulations accompanied by complete information on (2020 Revision) the payer; (b) not verifying the complete information on the payer on the basis of documents, data or information that meet the requirements of regulation 20(1) before transferring the funds; (c) not collecting beneficiary or payee information including the name and account number or unique transaction reference in order to facilitate the traceability of the transaction; or (d) not keeping records of complete information on the payer and payee which accompanies transfers of funds for five years. Anti-Money 37 1. Failure of both the payment service provider of the Serious Laundering payer and the payment service provider of the payee Regulations to ensure that transfers of funds are accompanied (2020 Revision) only by the account number of the payer or a unique identifier allowing the transaction to be traced back to the payer where both the payment service provider of the payer and the payment service provider of the payee are situated in the Islands. 2. Failure of the payment service provider of the payer to make available to the payment service provider of Page 22 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule the payee complete information on the payer, within three working days of receiving a request from the payment service provider of the payee to do so. Anti-Money 39 Failure of the payment service provider of a payee to Serious Laundering have effective procedures in place in order to detect Regulations whether, in the messaging or payment and settlement (2020 Revision) system used to effect a transfer of funds, the information required under regulations 37, 38 and 47 is obtained in accordance with the Anti-Money Laundering Regulations (2020 Revision). Anti-Money 40(1) The payment service provider of a payer executing wire Serious Laundering transfers where the payment service provider is unable Regulations to collect and maintain information on the payer and (2020 Revision) payee as required under regulations 36, 37 and 38(1) of the Anti-Money Laundering Regulations (2020 Revision). Anti-Money 40(2) Failure of a payment service provider of a payee to Serious Laundering have effective systems in place to detect missing Regulations required information on both the payer and payee. (2020 Revision) Anti-Money 40(3) Failure of a payment service provider of a payee to Serious Laundering either reject a transfer or request complete information Regulations on the payer where the payment service provider (2020 Revision) detects, when receiving transfers of funds, that information on the payer required by Part X of the Anti- Money Laundering Regulations (2020 Revision).is missing or incomplete. Anti-Money 40(4) Failure of a beneficiary or payee financial institution Serious Laundering to — Regulations (a) verify the identity of payee information; or (2020 Revision) (b) to keep records of the information for five years. Anti-Money 40(5) Failure of a payment service provider of a payee to Serious Laundering adopt risk-based policies and procedures for Regulations determining — (2020 Revision) (a) when to execute, reject or suspend a wire transfer where the required payer or payee information is incomplete and c Revised as at 31st December, 2021 Page 23 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (b) the resulting procedures to be applied. Anti-Money 40(6) 1. Where a payment service provider regularly fails to Very serious Laundering supply the required information on the payer, failure Regulations of a payment service provider of a payee to adopt (2020 Revision) reasonable measures to rectify noncompliance with the Anti-Money Laundering Regulations (2020 Revision), before — (a) rejecting any future transfers of funds from that payment service provider; (b) restricting its business relationship with that payment service provider; or (c) terminating its business relationship with that payment service provider. 2. Failure of the payment service provider of the payee to report to the Financial Reporting Authority and to the relevant Supervisory Authority any such decision to restrict or terminate its business relationship with a payment service provider who regularly fails to supply the required information on the payer. Anti-Money 42 Failure of the payment service provider of a payee to Serious Laundering keep records of any information received on the payer Regulations for five years. (2020 Revision) Anti-Money 43 Failure of an intermediary payment service provider to Serious Laundering ensure that all information received on the payer and Regulations the payee that accompanies a transfer of funds is kept (2020 Revision) with the transfer. Anti-Money 44 1. Failure of an intermediary payment service provider Serious Laundering to take reasonable measures, which are consistent Regulations with straight-through processing, to identify cross- (2020 Revision) border transfers that lack required payer or payee information. 2. Failure of an intermediary payment service provider to adopt risk-based policies and procedures for determining when to execute, reject or suspend a wire transfer where the required payer or payee information is incomplete and the resulting procedures to be applied. Page 24 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Anti-Money 47(3) The intermediary payment service provider using a Serious Laundering payment system with technical limitations where the Regulations intermediary payment service provider receives a (2020 Revision) transfer of funds with incomplete information about the payer as required under Part X and the intermediary payment service provider is not able to provide the payment service provider of the payee, with the information about the payer, using a manner of communication accepted by, or agreed between, both payment service providers. Anti-Money 47(4) Failure of an intermediary payment service provider to, Serious Laundering upon request from the payment service provider of the Regulations payee, make available to the payment service provider (2020 Revision) of the payee all the information on the payer which the intermediary payment service provider has received, irrespective of whether the information is complete or not, within three working days of the date of receiving that request, where the intermediary payment service provider uses a payment system with technical limitations. Anti-Money 47(5) Failure of an intermediary payment service provider to Serious Laundering keep records of all information received for five years in Regulations the cases referred to in regulation 47(2) and (3). (2020 Revision) Anti-Money 48 Failure of a payment service provider to respond fully Very serious Laundering and without delay to enquiries from the Reporting Regulations Authority concerning the information about the payer (2020 Revision) accompanying transfers of funds and corresponding records. Anti-Money 50 A person carrying out relevant financial business in or Very serious Laundering from the Islands forming a business relationship, or Regulations carrying out a one-off transaction, with a shell bank. (2020 Revision) Anti-Money 51 A person carrying out relevant financial business Very serious Laundering entering into or continuing correspondent banking and Regulations other similar relationships with a shell bank. (2020 Revision) c Revised as at 31st December, 2021 Page 25 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Anti-Money 52 Failure of a person carrying out relevant business to, in Serious Laundering addition to conducting customer due diligence Regulations procedures pursuant to the Anti-Money Laundering (2020 Revision) Regulations (2020 Revision) — (a) collect information to understand the nature of a respondent institution’s business and determine from publicly available information the reputation of the institution and the quality of supervision, including whether the institution has been subject to money laundering or terrorist financing investigation or regulatory action; (b) assess the respondent institution’s anti- money laundering and countering financing of terrorist controls; (c) obtain approval from senior management before establishing new correspondent relationships;

and (d) clearly understand and document the respective responsibilities of each institution, in relation to cross-border correspondent banking and other similar relationships. Anti-Money 53 With respect to payable-through accounts, failure of a Serious Laundering person carrying out relevant financial business to be Regulations satisfied that the respondent bank — (2020 Revision) (a) has performed customer due diligence obligations on its customers that have direct access to the accounts of the correspondent bank; and (b) is able to provide relevant customer due diligence information to the correspondent bank upon request. Anti-Money 53A 1. Failure of a person carrying out relevant financial Very serious Laundering business, who receives a notice in writing, requiring Regulations the person carrying out relevant financial business to (2020 Revision) provide such documents, statements or any other information as the Supervisory Authority may reasonably require in connection with the exercise of its functions], to comply with that notice within the period and in the manner specified in the notice. Page 26 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 2. Failure of a person carrying out relevant financial business, a connected person or a person reasonably believed to have information relevant to an inquiry by the Supervisory Authority to, when required by a Supervisory Authority by notice in writing, attend before the Supervisory Authority to answer such questions or provide such information as the Supervisory Authority may deem necessary in connection with its inquiry. 3. Failure to provide information required to be provided to the Supervisory Authority under this regulation in the English language. 2 - Banks and Trust Companies Act 2. BANKS AND TRUST COMPANIES ACT (2021 REVISION) Banks and Trust 5(1) A person carrying on banking business transactions Very serious Companies Act from within the Islands without a valid licence granted (2021 Revision) by the Authority authorising the person to carry on such business. Banks and Trust 5(2) Subject to subsection (3) and to such other exemptions Very serious Companies Act and conditions as may be prescribed by regulations (2021 Revision) made by the Cabinet under this subsection, a trust company carrying on trust business as a trust company from within the Islands without a valid licence granted by the Authority authorising it to carry on such business. Banks and Trust 5(4) 1. Failure of a controlled subsidiary to which subsection Minor Companies Act (3) refers to register with the Authority. (2021 Revision) 2. Failure of a controlled subsidiary to which subsection (3) refers to file with the Authority an annual declaration at the time of registration in such form as the Authority may approve, declaring — (a) the name of the controlled subsidiary; (b) the name of the licensee of which the controlled subsidiary is a subsidiary; c Revised as at 31st December, 2021 Page 27 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (c) the names of the directors and senior officers of the controlled subsidiary; and (d) that the controlled subsidiary is a controlled subsidiary to which subsection (3) applies. 3. Failure of a controlled subsidiary to which subsection (3) refers to file with the Authority an annual declaration, on or before the 31st day of January every year after registration, during the continuation of such registration, in such form as the Authority may approve, declaring — (a) the name of the controlled subsidiary; (b) the name of the licensee of which the controlled subsidiary is a subsidiary; (c) the names of the directors and senior officers of the controlled subsidiary; and (d) that the controlled subsidiary is a controlled subsidiary to which subsection (3) applies. 4. Failure of a controlled subsidiary to which subsection (3) refers to pay to the Government the prescribed fee at the time of registration. 5. Failure of a controlled subsidiary to which subsection (3) refers to pay to the Government the prescribed fee on or before the 31st day of January every year after registration during the continuation of the registration. Banks and Trust 6(4) 1. A licensee — Very serious Companies Act (a) ceasing to have a principal office in the (2021 Revision) Islands; (b) changing its principal office in the Islands without the prior approval of the Authority; (c) ceasing to have an authorised agent under paragraph (b) of subsection (2); or (d) changing its agent (or, where the licensee has appointed two individuals to be its agent, either of them) without the prior approval of the Authority. Banks and Trust 6(6) The holder of a “B” licence — Very serious Companies Act (a) taking deposits from any person resident in Page 28 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2021 Revision) the Islands, other than another licensee, or an exempted or an ordinary non-resident company which is not carrying on business in the Islands; (b) investing in any asset which represents a claim on any person resident in the Islands, except a claim resulting from — (i) a loan to an exempted or an ordinary non-resident company not carrying on business in the Islands; (ii) a loan by way of mortgage to a member of its staff or to a person possessing or being deemed to possess Caymanian status under the Immigration (Transition) Act (2022 Revision) for the purchase or construction of a residence in the Islands to be owner-occupied; (iii) a transaction with another licensee; or (iv) the purchase of bonds or other securities issued by the Government, a body incorporated by statute, or a company in which the Government is the sole or majority beneficial owner; or (c) carrying on any business in the Islands other than one for which the “B” licence has been obtained without the written approval of the Authority; (d) which is not a subsidiary or branch of a bank licensed in a country or territory outside the Islands carrying on business in the Islands after 26th April, 2003, without having such resources (including staff and facilities) and such books and records as the Authority considers appropriate having regard to the nature and scale of the business. Banks and Trust 6(8) 1. Failure of a holder of a licence to pay the prescribed Minor Companies Act annual fee on or before every 15th day of January (2021 Revision) after the first grant of the licence to the Financial Secretary for the benefit of the revenue. 2. Failure of the holder of a licence who does not pay c Revised as at 31st December, 2021 Page 29 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule the prescribed annual fee on or before the 15th day of January after the first grant of the licence to pay the surcharge not exceeding one-twelfth of that fee for every month or part of a month that the fee is not paid,, unless the Authority waives the prescribed annual fee or the surcharge. Banks and Trust 7(1) 1. A company which is a licensee under this Act issuing Serious Companies Act shares in that company which is a licensee under (2021 Revision) this Act without the prior approval of the Authority. 2. A company which is a licensee under this Act transferring or disposing of issued shares without the prior approval of the Authority. Banks and Trust 8(5) Failure of a licensee to maintain the net worth required Serious Companies Act by section 8. (2021 Revision) Banks and Trust 8(6) Failure by the parent undertaking of a Cayman banking Serious Companies Act group to ensure that the net worth stipulated in section (2021 Revision) 8, or such higher net worth as the Authority may direct, is maintained both in respect of the licensee on a solo basis and on a consolidated basis taking into account all the entities in the Cayman banking group. Banks and Trust 10(1) A licensee holding a licence for the carrying on of Serious Companies Act banking business and incorporated under the (2021 Revision) Companies Act (2022 Revision) having a capital adequacy ratio of less than — (a) ten per cent; or (b) such other percentage as may be determined by the Authority from time to time, as calculated in accordance with such form, content and manner as may be prescribed. Banks and Trust 10(2A) Failure by the parent undertaking of a Cayman banking Serious Companies Act group to ensure that capital requirements and other (2021 Revision) prudential measures that may be issued by the Authority are met on a consolidated basis by the Cayman banking group. Page 30 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Banks and Trust 10(2B) Failure by the parent undertaking of a Cayman banking Serious Companies Act group to ensure that any prudential, supervisory or risk (2021 Revision) management measures that may be issued by the Authority from time to time are met on a consolidated basis by the Cayman banking group. Banks and Trust 11(1)(a) A person other than a licensee using or continuing to Serious Companies Act use the words “bank”, “trust”, “trust company”, “trust (2021 Revision) corporation”, “savings” or “savings and loan” or any of their derivatives, either in English or in any other language, in the description or title under which a person is carrying on business from within the Islands, whether or not such business is carried on in the Islands, without the approval of the Authority. Banks and Trust 11(1)(b) A person other than a licensee making or continuing to Serious Companies Act make any representation in any billhead, letter, (2021 Revision) letterhead, circular, paper, notice, advertisement or in any other manner whatsoever that the person is carrying on banking business or trust business without the approval of the Authority. Banks and Trust 11(1)(c) A person other than a licensee soliciting or receiving Serious Companies Act deposits from the public in any manner without the (2021 Revision) approval of the Authority. Banks and Trust 11(2) A company registering, or continuing to be registered Serious Companies Act by a name which contains the words “bank”, “trust”, (2021 Revision) “trust company”, “trust corporation”, “savings” or “savings and loan” or any of their derivatives, either in English or in any other language, in the description or title under which such company is carrying on business from within the Islands, whether or not such business is carried on in the Islands, without the approval of the Authority. Banks and Trust 11(5)(a) A bank or trust company carrying on or intending to Minor Companies Act carry on banking or trust business, as the case may be, (2021 Revision) under a name which is identical with that of any company, firm or business house, whether within the Islands or not, or which so nearly resembles that name as to be calculated to deceive. c Revised as at 31st December, 2021 Page 31 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Banks and Trust 11(5)(b) A bank or trust company carrying on or intending to Serious Companies Act carry on banking or trust business, as the case may be, (2021 Revision) under a name which is calculated to suggest, falsely, the patronage of or connection with some person or authority, whether within the Islands or not. Banks and Trust 11(5)(c) A bank or trust company carrying on or intending to Serious Companies Act carry on banking or trust business, as the case may be, (2021 Revision) under a name which is calculated to suggest, falsely, that such bank or trust company has a special status in relation to or derived from the Government, has the official backing of or acts on behalf of the Government, of any department, branch, agency or organ of Government, or of any officer thereof, or is recognised in the Islands as a national or central bank or trust company. Banks and Trust 12(1) Failure of a licensee incorporated under the Companies Serious Companies Act Act (2022 Revision) to have its accounts audited (2021 Revision) annually or at such other times as the Authority may require by an auditor. Banks and Trust 12(2) Failure of a licensee incorporated under the Companies Minor Companies Act Act (2022 Revision) to forward its audited accounts to (2021 Revision) the Authority within three months of the end of the financial year of the licensee, without the prior written approval of an extension by the Authority. Banks and Trust 12(2A) Failure of a licensee incorporated under the Companies Minor Companies Act Act (2022 Revision) to forward to the Authority (2021 Revision) consolidated accounts in respect of the parent undertaking of the Cayman banking group of which the licensee is a member within three months of the end of the financial year of the parent undertaking of the Cayman banking group, without the prior written approval of an extension by the Authority. Banks and Trust 12(3) Failure of a licensee not incorporated under the Minor Companies Act Companies Act (2022 Revision) to provide a copy of the (2021 Revision) audited annual accounts of its head office to the Authority within three months of the end of the financial year of its parent company, without the prior written approval of an extension by the Authority. Page 32 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Banks and Trust 12(4) Failure of a licensee incorporated under the Companies Minor Companies Act Act (2022 Revision) to comply with a requirement to (2021 Revision) explain the circumstances responsible for the change of its auditor, where such change occurs. Banks and Trust 13(1) Failure of an auditor to immediately give the Authority Serious Companies Act written notice of the auditor’s information or suspicion, (2021 Revision) and in the case of suspicion, the auditor’s reason for that suspicion, where, in the course of carrying out an audit of the accounts of a licensee or of any entity forming part of a Cayman banking group the auditor obtains information or suspects that the licensee is — (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or is winding up its business voluntarily in a manner that is prejudicial to its investors or creditors; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; or (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; (e) carrying on or attempting to carry on business without compliance with — (i) this Act or any regulations made hereunder; (ii) Part XVIIA of the Companies Act (2022 Revision), Part 12 of the Limited Liability Companies Act (2021 Revision) or Part 8 of the Limited Liability Partnership Act (2021 Revision), if the licensee is a “corporate services provider” as defined in that Part; (iii) the Monetary Authority Act (2020 Revision); (iv) the Anti-Money Laundering Regulations (2020 Revision); or (v) a condition of the licence. c Revised as at 31st December, 2021 Page 33 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Banks and Trust 13(3) A licensee appointing as an auditor a person Serious Companies Act disqualified under subsection (2). (2021 Revision) Banks and Trust 14(1)(a) A licensee incorporated under the Companies Act Serious Companies Act (2022 Revision) opening a subsidiary, branch, agency (2021 Revision) or representative office outside the Islands without the prior written approval of the Authority. Banks and Trust 14(1)(b) A licensee incorporated under the Companies Act Minor Companies Act (2022 Revision) changing its name without the prior (2021 Revision) written approval of the Authority. Banks and Trust 14(1A) Failure of a licensee to inform the Authority of any Serious Companies Act change in holdings that affects the composition of the (2021 Revision) licensee’s economic group, including any new entities forming part of the licensee’s economic group, within forty-five days of the occurrence of the change. Banks and Trust 14(2) 1. A licensee incorporated under the Companies Act Minor Companies Act (2022 Revision) holding a licence for the carrying on (2021 Revision) of banking business acquiring or holding a beneficial interest in an entity, whether directly or indirectly, so that the value of the interest at any time exceeds twenty per cent of the net worth of the licensee without the prior written approval of the Authority. 2. A licensee incorporated under the Companies Act (2022 Revision holding a licence for the carrying on of banking business acquiring or holding a beneficial interest in an entity, whether directly or indirectly, so that the value of the interest at any time exceeds twenty per cent of the net worth of the licensee without it being necessary with respect to any interest acquired by the licensee in satisfaction of debts due to it. 3. Failure of a licensee incorporated under the Companies Act (2022 Revision who holds a licence for the carrying on of banking business, to dispose of any interest acquired in satisfaction of debts due to the licensee within a period not exceeding five years or such longer period as permitted by the Authority. Page 34 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Banks and Trust 14(3) 1. Subject to subsections (4) and (5), a licensee holding Minor Companies Act a licence for the carrying on of banking business (2021 Revision) purchasing, acquiring or leasing real estate without the prior written approval of the Authority. 2. Subject to subsections (4) and (5), a licensee holding a licence for the carrying on of banking business purchasing, acquiring or leasing real estate which is not necessary for the purpose of conducting its business or providing housing or amenities for its staff. 3. Subject to subsections (4) and (5), a licensee holding a licence for the carrying on of banking business purchasing, acquiring or leasing real estate where the market value of the real estate exceeds twenty per cent of the net worth of the licensee, or such other sum as to the Authority may seem appropriate to a maximum of fifty per cent of the net worth of the licensee. Banks and Trust 15(1) Failure of a licensee holding a Trust Licence to obtain Serious Companies Act and maintain adequate professional indemnity (2021 Revision) insurance, or have in place other appropriate arrangements to cover risks, in respect of its trust business. Banks and Trust 15(3) Failure of a trust company acting in its capacity as a Serious Companies Act trustee of a trust which forms a business relationship or (2021 Revision) which enters into a one-off transaction with a person conducting relevant financial business under Schedule 6 of the Proceeds of Crime Act (2020 Revision) to take reasonable steps to inform the person that the trust company is carrying on trust business and is acting in its capacity as a trustee of a trust — (a) at the time or before the business relationship is formed; or (b) at the time or before the transaction is entered into. Banks and Trust 15A(1) Failure of a licensee holding a Trust licence to pay the Minor Companies Act prescribed fee for each company for which the licensee c Revised as at 31st December, 2021 Page 35 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2021 Revision) provided a registered office up to the 31st day of December in the preceding year. Banks and Trust 15A(3) 1. Failure of a Trust licensee to pay the prescribed fee Minor Companies Act under subsection (1) on or before every 15th day of (2021 Revision) January. 2. Failure of a licensee who does not pay [the annual fee] / [the prescribed fee under subsection (1)] on or before the 15th day of January to pay the surcharge not exceeding one-twelfth of that fee for every month or part of a month that the fee is not paid, unless the fee has been waived by the Authority. Banks and Trust 16(1) Failure by a licensee to have two or more directors. Serious Companies Act (2021 Revision) Banks and Trust 16(2) Failure of a licensee to apply to the Authority for its Serious Companies Act written approval of the appointment of a director or (2021 Revision) other senior officer before appointing the director or other senior officer, unless it is exempt from such a requirement by the Authority. Banks and Trust 17(3) 1. Failure of a licensee to — Serious Companies Act (a) give the Authority access to its books, (2021 Revision) records, vouchers, documents, cash and securities; (b) give the Authority access to information from any member of the Cayman banking group or any member of the licensee’s economic group including information on — (i) policies; (ii) procedures; (iii) financial statements; (iv) audit reports; (v) Board reports; (vi) regulatory returns; and (vii) supervisory reports from overseas regulators; (c) allow the Authority to examine the business or affairs including the carrying on of onsite inspections, of any member of the Cayman Page 36 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule banking group; or (d) allow the Authority to conduct onsite inspections of a licensee, as the Authority may reasonably require for the purpose of enabling it to perform its functions under this Act. 2. Failure of a person who the Authority has reasonable grounds to believe is carrying on banking or trust business in the Islands in contravention of section 5(1) or (2) to give to the Authority any information, matter or thing requested from the person by the Authority. Banks and Trust 18(1)(a) A licensee becoming or appears likely to become Serious Companies Act unable to meet its obligations as they fall due. (2021 Revision) Banks and Trust 18(1)(b) A licensee carrying on business in a manner Very serious Companies Act detrimental to the public interest, the interest of its (2021 Revision) depositors or of the beneficiaries of any trust, or other creditors. Banks and Trust 18(1)(c) A licensee contravening this Act. Very serious Companies Act (2021 Revision) Banks and Trust 18(1)(ca) A person who holds a licence issued under section Serious Companies Act 6(5)(c), (e) or (f) and who is a “corporate services (2021 Revision) provider”, as defined in — (a) Part XVIIA of the Companies Act (2022 Revision); (b) Part 12 of the Limited Liability Companies Act (2021 Revision); or (c) Part 8 of the Limited Liability Partnership Act (2021 Revision), contravening Part XVIIA of the Companies Companies Act (2022 Revision), Part 12 of the Limited Liability Companies Act (2021 Revision) or Part 8 of the Limited Liability Partnership Act (2021 Revision). Banks and Trust 18(1)(d) Failure of a licensee to comply with a condition of its Serious Companies Act licence. (2021 Revision) c Revised as at 31st December, 2021 Page 37 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Banks and Trust 18(1)(e) Failure of a licensee to ensure that the direction and Very serious Companies Act management of the licensee’s business is conducted in (2021 Revision) a fit and proper manner. Banks and Trust 18(1)(f) A person who is not a fit and proper person holding a Very serious Companies Act position as a director, manager or officer of a licensee’s (2021 Revision) business. Banks and Trust 18(1)(g) A person who is not a fit and proper person holding or Very serious Companies Act acquiring control or ownership of a licensee. (2021 Revision) Banks and Trust 18(1)(h) An individual who is not a fit and proper person, directly Very serious Companies Act or indirectly, holding or acquiring control or ownership (2021 Revision) of more than 25% of the shares or voting rights in a licensee or the right to appoint or remove a majority of the Board of directors of a licensee. Banks and Trust 18A Failure of a licensee holding a licence to carry on Serious Companies Act banking business or a Cayman banking group to make (2021 Revision) public disclosures where it is required by the Authority to do so. Banks and Trust 22(4) A person obstructing the Authority or any other person Serious Companies Act in the exercise of any powers conferred on the person (2021 Revision) under section 22. Banks and Trust 23 A licensee or any director or officer of a licensee Very serious Companies Act knowingly or wilfully supplying false or misleading (2021 Revision) information to the Authority. 3 - Private Trust Companies Regulations 3. PRIVATE TRUST COMPANIES REGULATIONS (2020 REVISION) Private Trust 3(1) Failure of a private trust company to maintain its Serious Companies registered office at the office of a company that holds a Regulations Trust licence under section 6(5)(c) of the Banks and (2020 Revision) Trust Companies Act (2021 Revision). Page 38 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Private Trust 3(1A) Failure of a private trust company to allow the Authority Serious Companies to inspect all documents and records of the private trust Regulations company held or that should be held at the registered (2020 Revision) office at all reasonable times. Private Trust 3(2) Failure of a private trust company to keep at its Serious Companies registered office and to make available for inspection by Regulations the Authority at its registered office, in relation to each (2020 Revision) relevant trust, adequate, accurate and up to date copies of the trust deed or other documents containing or recording any or all of the following — (a) the terms of the trust; (b) the name and address of the trustee; (c) the name and address of the settlor; (d) the name and address of any protector; (e) the name and address of any enforcer; (f) the name and address of any contributor to the trust; (g) the name and address of any beneficiary to whom a distribution is made from the trust; (h) any deed or other document varying the terms of the trust; or (i) all financial and transactional records of the private trust company and its connected trust business. Private Trust 4(2) 1. Failure of a private trust company to register with the Very serious Companies Authority. Regulations (2020 Revision) 2. Failure of a private trust company to file with the Authority in the form specified by the Authority, proof of the identification of the directors and shareholders of the private trust company, at the time of registration. 3. Failure of a private trust company to file with the Authority in the form specified by the Authority proof of the identification of the directors and shareholders of the private trust company, on or before the 31st day of January every year during the continuation of registration. c Revised as at 31st December, 2021 Page 39 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Private Trust 4(2)(a) 1. Failure of a private trust company to file with the Serious Companies Authority a declaration in such form as the Authority Regulations may approve, declaring — (2020 Revision) (a) the name of the private trust company; (b) the names and addresses of the directors of the private trust company; (c) the names and addresses of the shareholders or members, if any, of the private trust company; (d) the name of the holder of the Trust licence providing the registered office of the private trust company; (e) that the company is a private trust company to which paragraph (1) applies; and (f) that the company is in compliance with the requirements of these regulations, at the time of registration. 2. Failure of a private trust company to file with the Authority a declaration in such form as the Authority may approve, declaring — (a) the name of the private trust company; (b) the names and addresses of the directors of the private trust company; (c) the names and addresses of the shareholders or members, if any, of the private trust company; (d) the name of the holder of the Trust licence providing the registered office of the private trust company; (e) that the company is a private trust company to which paragraph (1) applies; and (f) that the company is in compliance with the requirements of these regulations, on or before the 31st day of January every year after registration during the continuation of registration. Private Trust 4(2)(b) 1. Failure of a private trust company to at the time of Minor Companies registration pay to the Authority the prescribed fee at Regulations the time of registration. (2020 Revision) 2. Failure of a private trust company to pay to the Authority the prescribed fee on or before the 31st day of January every year during the continuation of Page 40 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule the registration. Private Trust 4(2A) Failure of a private trust company that fails to pay the Minor Companies annual registration fee under paragraph (2)(b) to pay Regulations the surcharge not exceeding one-twelfth of the annual (2020 Revision) registration fee for every month or part of a month that the annual registration fee is not paid. Private Trust 4(3) A private trust company filing false, misleading or Very serious Companies inaccurate information under paragraph (2)(a) or (aa). Regulations (2020 Revision) Private Trust 4(4) Failure of a registered private trust company to inform Serious Companies the Authority of any change in the information provided Regulations to the Authority for the registration of a private trust (2020 Revision) company within thirty days of the change. Private Trust 4A Failure of a private trust company registering with the Serious Companies Authority under regulation 4(2) or a private trust Regulations company making any change to the membership of the (2020 Revision) Board of the private trust company, on or after the commencement of the Private Trust Companies (Amendment) Regulations, 2019 to have a natural person appointed as a director. Private Trust 5 A private trust company soliciting or receiving Very serious Companies contributions in respect of trusts of which it is trustee, Regulations from — (2020 Revision) (a) the public; or (b) persons other than those who are, in relation to each other, connected persons. Private Trust 6(1) Failure of a private trust company to use the words Very serious Companies “Private Trust Company” or the letters “PTC” in the Regulations name by which the company is registered under the (2020 Revision) Companies Act (2022 Revision). Private Trust 6(2) A person, other than a private trust company, using the Very serious Companies words “Private Trust Company” or the letters “PTC” in Regulations the description or title under which the person is (2020 Revision) carrying on business from within the Islands, whether c Revised as at 31st December, 2021 Page 41 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule or not such business is carried on in the Islands. 4 - Building Societies Act 4. BUILDING SOCIETIES ACT (2020 REVISION) Building 4(2)(da) Failure of a society to make rules setting forth that Serious Societies Act directors and senior officers are required to be fit and (2020 Revision) proper persons. Building 7(1) Failure of a society or the proper officer of the society Very serious Societies Act to submit two transcripts of all rules made by the society (2020 Revision) to the Attorney General in the prescribed manner and within the prescribed timeframe. Building 8 Failure of a society to pay its incorporation fees, annual Minor Societies Act fees or regulatory fees within the prescribed timeframe. (2020 Revision) Building 9(1) Failure of a building society which unites with another Serious Societies Act society or which transfers its engagements to any other (2020 Revision) society to notify the Registrar of a resolution. Building 10(2) Failure of a society to submit a notice of the change of Minor Societies Act name to the Registrar. (2020 Revision) Building 11(2) 1. Failure of the secretary of a society to give notice of Minor Societies Act a change of its chief office to the Registrar within (2020 Revision) seven days after such change. 2. Failure of the secretary of a society to advertise the change of the society’s chief office for two days in any one of the newspapers published in the Islands, and where there is no newspaper published in the Islands then in one of the newspapers circulating in the Islands. Building 13A(1) Failure of a society to obtain the approval of the Serious Societies Act Authority prior to appointing a new director or senior Page 42 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2020 Revision) officer. Building 15A(1) 1. Failure of a society to comply with the requirement Serious Societies Act not to issue shares to a member representing ten per (2020 Revision) cent or more of total voting rights of the society without the prior approval of the Authority. 2. Failure of a member to comply with the requirement not to transfer or dispose of shares issued to the member which represent ten per cent or more of the total voting rights of the society without the prior approval of the Authority. Building 21(1) Failure of a secretary or manager of a society to, at Serious Societies Act least once in every year, prepare an account described (2020 Revision) in section 21(1)(a) and to prepare a general statement described in section 21(1)(b). Building 21(2) Failure of a secretary or manager to ensure that the Serious Societies Act account and the general statement referred to under (2020 Revision) section 21(1) are attested by the auditors to whom the mortgage deeds and other securities belonging to the society are produced and countersigned by the secretary or manager. Building 21(3) 1. Failure of a society to send a copy of the account and Minor Societies Act general statement to every member, depositor and (2020 Revision) creditor for loans. 2. Failure of a society to send a copy of the account and general statement to the Authority within fourteen days after the annual or other general meeting at which it is presented. Building 22A(1) and (4) 1. Failure of an auditor to give to the Authority written Serious Societies Act notice of specified information or written notice of a (2020 Revision) suspicion, and in the case of suspicion, the auditor’s reason for that suspicion, where in the course of carrying out an audit of the accounts of a society under this Act, the auditor obtains information or suspects that the society is — (a) unable or likely to become unable to meet its obligations as they fall due; c Revised as at 31st December, 2021 Page 43 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (b) carrying on or attempting to carry on business or winding up its business voluntarily in a manner that is prejudicial to its members; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business otherwise than in compliance with — (i) this Act, (ii) the Monetary Authority Act (2020 Revision); or (iii) the Anti-Money Laundering Regulations (2020 Revision). 2. Failure of a former auditor to explain to the Authority the reasons for the change where a society changes its auditor. Building 33(3) 1. Failure of a society to grant to the Authority access Serious Societies Act to such books, records, vouchers, documents, cash (2020 Revision) and securities of any society. 2. Failure of a person to provide to the Authority, in such form as the Authority may reasonably require, such information, matter or thing from any person who the Authority has reasonable grounds to believe is carrying on business in contravention of this Act. 3. Failure of the committee of management or Board of directors of a society, or any officer designated by the committee or Board, to provide information or an explanation when called upon by the Authority. Building 35(5) A person obstructing the Authority, or any other person, Serious Societies Act in the exercise of any powers conferred under section (2020 Revision) 35. Building 39 A person obstructing an accountant or actuary Serious Societies Act appointed under section 38, in the exercise of the (2020 Revision) accountant’s or actuary’s duty. Page 44 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Building 42 1. Failure of an officer or agent of a society to produce Serious Societies Act any book or document directed to be produced by an (2020 Revision) Inspector. 2. Failure of an officer or agent of a society to answer any question of an Inspector relating to the affairs of the society. Building 47(1) A person, by false representation or imposition, Serious Societies Act obtaining possession of any moneys, securities, books, (2020 Revision) papers or other effects of a society, or, having the same in the person’s possession, withholding or misapplying the same, or wilfully applying any part thereof to purposes other than those expressed or directed in the rules of the society and authorised by law. Building 48(1) Failure to first obtain a certificate of incorporation under Very serious Societies Act this Act before forming a society or before commencing (2020 Revision) business as a building society. Building 48(2) A society receiving loans or deposits in excess of the Serious Societies Act limits prescribed by this Act. (2020 Revision) Building 49 1. A director, secretary, surveyor, attorney-at-law or Serious Societies Act other officer of a society receiving or accepting from (2020 Revision) any other person any gift, bonus, commission or benefit for or in connection with any loan made by the society. 2. A person paying to a director, secretary, surveyor, attorney-at-law or other officer of a society any gift, bonus, commission or benefit for or in connection with any loan made by the society. Building 50 A person wilfully making, ordering or allowing to be Very serious Societies Act made any false statement in any document required by (2020 Revision) this Act to be sent to the Authority or the Registrar, or by erasure, omission or otherwise, wilfully falsifying any such document. Building 51 1. Neglect or refusal of a society under this Act to give Serious Societies Act any notice, send any return or document, or do or c Revised as at 31st December, 2021 Page 45 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2020 Revision) allow to be done, anything which the society is by this Act required to give, send, do or allow to be done. 2. Neglect or refusal of a society under this Act to do any act, or furnish any information required for the purposes of this Act by the Authority, the Registrar or an Inspector. 5 - Companies Management Act 5. COMPANIES MANAGEMENT ACT (2021 REVISION) Companies 5(4) Subject to subsection (2), failure of a person to comply Very serious Management with the requirement to hold a current licence while Act (2021 carrying on the business of company management. Revision) Companies 6(5) Failure of the holder of a licence under this Act to inform Minor Management the Authority of such changes made relating to any of Act (2021 the information furnished in accordance with section Revision) 5(6) as may be prescribed within fourteen days after any such change has occurred. Companies 9(1) 1. A licensee which is a company issuing shares Serious Management without the approval of the Authority. Act (2021 Revision) 2. Failure of a licensee to comply with any conditions of the approval given by the Authority. 3. A person who owns or has an interest in shares in the company licensed under this Act transferring or otherwise disposing of or dealing in those shares or that interest without the approval of the Authority. 4. Failure of a person who owns or has an interest in shares in a company licensed under this Act to comply with any conditions of the approval given by the Authority. Companies 9(4) Failure of a secretary, as soon as the secretary Serious Page 46 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Management becomes aware of any shares automatically vesting Act (2021 through process of law in a person, to inform the Revision) Authority of the number of shares and the identity of the person in whom the shares have vested. Companies 11(1)(a) A person, other than a licensee, using a word which Serious Management connotes the business of company management, either Act (2021 in English or in any other language, in the description Revision) or title under which the person carries on business in or from within the Islands. Companies 11(1)(b) A person, other than a licensee, making a Serious Management representation in a document or in any other manner Act (2021 that the person is carrying on the business of company Revision) management. Companies 11(2)(a) or (d) 1. Failure of a licensee, being a body corporate with a Minor Management name, or carrying on business under a name, which Act (2021 is identical with that of another person, whether Revision) within the Islands or not, or which so nearly resembles that name as to be likely to deceive, to comply with the Authority’s request to change the licensee’s name within three calendar months of the receipt of notice from the Authority. 2. Failure of a licensee, being a body corporate with a name, or carrying on business under a name, which includes any word or expression prescribed in regulations, to comply with the Authority’s request to change the licensee’s name within three calendar months of the receipt of notice from the Authority. Companies 11(2)(b) or (c) 1. Failure of a licensee, being a body corporate with a Serious Management name, or carrying on business under a name, which Act (2021 in the opinion of the Authority connotes, falsely, the Revision) patronage of or connection with a person whether within the Islands or not, to comply with the Authority’s request to change the licensee’s name within three calendar months of the receipt of notice from the Authority. 2. Failure of a licensee, being a body corporate with a name, or carrying on business under a name, which c Revised as at 31st December, 2021 Page 47 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule in the opinion of the Authority connotes, falsely, that it has a special status in relation to or derived from the Government, or has the official backing of or acts on behalf of the Government or of any of its departments or officials, to comply with the Authority’s request to change the licensee’s name within three calendar months of the receipt of notice from the Authority. Companies 13(1) Failure of the holder of a companies management Serious Management licence to have the holder’s accounts audited annually Act (2021 or at such other time as the Authority may require by an Revision) auditor who is approved by the Authority and who is a member of — (a) the Institute of Chartered Accountants in England and Wales; (b) the Canadian Institute of Chartered Accountants; (c) the Chartered Association of Certified Accountants of England and Wales; (d) the American Institute of Certified Public Accountants; or (e) any other professional body or institute approved by the Authority. Companies 13(2) Failure of the holder of a companies management Minor Management licence, within six months of the end of the financial Act (2021 year of the holder of the companies management Revision) licence, to forward to the Authority — (a) the audited accounts for the financial year just ended; (b) a certificate of compliance with this Act and any regulations made under this Act or the Monetary Authority Act (2020 Revision), signed by the licensee or, if the licensee is a body corporate, a director of the licensee; or (c) an auditor’s certificate of the existence of adequate procedures to ensure compliance by the licensee with any Code of Practice that may be issued under section 113 of the Proceeds of Crime Act (2020 Revision); or under regulations made under this Act.

Companies 13(3) Failure of the holder of a corporate services licence to, Serious Page 48 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Management once every two years (or such shorter or longer period Act (2021 as the Authority may require in any individual case), Revision) forward to the Authority the certificates specified under section 13(2)(b) or 13(2)(c). Companies 13(4) 1. A licensee changing the licensee’s auditor without the Serious Management prior written approval of the Authority. Act (2021 Revision) 2. Failure of an outgoing auditor to explain to the Authority the circumstances giving rise to the change of auditor. Companies 13(5) A person signing a certificate under section 13(2)(b) Serious Management knowing or who ought reasonably to have known that Act (2021 such certificate is false. Revision) Companies 13(6) Failure of an auditor who, in the course of carrying out Serious Management an audit of the accounts of a licensee, becomes aware, Act (2021 or has reasonable grounds to believe, that the licensee Revision) is — (a) unable to meet the licensee’s obligations as they fall due; (b) carrying on or attempting to carry on the licensee’s business of company management or winding up the licensee’s business of company management in a manner that is prejudicial to the licensee’s managed companies or their owners, or to the licensee’s creditors, or to the creditors of the licensee’s managed companies or their owners; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow the licensee’s accounts to be properly audited; or (d) carrying on business in a fraudulent or criminal manner, to immediately give the Authority written notice of the auditor’s knowledge or belief, and to give reasons for that knowledge or belief. c Revised as at 31st December, 2021 Page 49 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Companies 14(a) Failure of a licensee to comply with the requirement not Serious Management to open a subsidiary, branch, agency or representative Act (2021 office outside the Islands without the prior approval of Revision) the Authority. Companies 14(b) Failure of a licensee to comply with the requirement not Minor Management to change the licensee’s name without the prior Act (2021 approval of the Authority. Revision) Companies 15(1) Failure of a holder of a companies management licence Serious Management which is a company to comply with the requirement to Act (2021 have no fewer than two directors at any time. Revision) Companies 15(2) 1. Failure of a licensee to comply with the requirement Serious Management to obtain the prior written approval of the Authority Act (2021 before making an appointment to the Board of Revision) directors. 2. Failure of a licensee which is a company to comply with the requirement to obtain the prior written approval of the Authority before making an appointment of a senior officer. 3. Failure of a holder of a corporate services licence to comply with the requirement to give one month’s prior notice to the Authority before making an appointment to the Board of directors. 4. Failure of a holder of a corporate services licence to comply with the requirement to give one month’s prior notice to the Authority before making an appointment of a senior officer. Companies 15(3) Failure of a licensee to remove or replace a director, or Serious Management dismiss a senior officer, who is convicted in any country Act (2021 of an offence involving dishonesty within fourteen days Revision) of the conviction. Companies 16(2) Failure of a person who the Authority reasonably Serious Management believes is carrying on the business of company Act (2021 management in contravention of this Act, or a licensee, Revision) to provide — Page 50 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (a) access to, and to allow copies to be made of, such books, records and documents; (b) access to such cash and securities; or (c) such information or explanation, as the Authority may reasonably require for the performance of the Authority’s functions under this Act. Companies 16(6) A person knowingly or recklessly furnishing any Very serious Management information, providing any explanation or making any Act (2021 statement which is false or misleading in a material Revision) particular. Companies 17(1) Failure of a licensee to insure with authorised insurers Serious Management against the losses referred to in section 17(3). Act (2021 Revision) Companies 18(1)(a) Where a licensee is or appears likely to become unable Serious Management to meet its obligations as they fall due. Act (2021 Revision) Companies 18(1)(b) A licensee carrying on business in a manner Very serious Management detrimental to the public interest or to the interest of the Act (2021 licensee’s clients or creditors. Revision) Companies 18(1)(c) A licensee contravening this Act, Part XVIIA of the Very serious Management Companies Act (2022 Revision) or Part 12 of the Act (2021 Limited Liability Companies Act (2021 Revision). Revision) Companies 18(1)(d) Failure of a licensee to comply with a condition of its Serious Management licence. Act (2021 Revision) Companies 18(1)(e) Failure of a licensee to ensure that the direction and Very serious Management management of the licensee’s business is being Act (2021 conducted in a fit and proper manner. Revision) Companies 18(1)(f) A person who is not a fit and proper person holding a Very serious Management position as a director, manager or officer of a licensee’s Act (2021 business. Revision) c Revised as at 31st December, 2021 Page 51 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Companies 18(1)(g) A person who is not a fit and proper person holding or Very serious Management acquiring control or ownership of a licensee. Act (2021 Revision) Companies 19(7) A person wilfully obstructing the Authority or other Serious Management authorised person in the exercise of any powers Act (2021 conferred on the Authority or that other authorised Revision) person. 6 - Cooperative Societies Act 6. COOPERATIVE SOCIETIES ACT (2020 REVISION) Cooperative 12 1. Failure of a registered society to have an address Minor Societies Act registered in accordance with the regulations to (2020 Revision) which all notices and communications may be sent. 2. Failure of a registered society to send to the Registrar notice of every change of that address. Cooperative 13 Failure of a registered society to paint or affix and keep Minor Societies Act painted or affixed its registered name, in letters easily (2020 Revision) legible, and in a conspicuous position on the outside of every office or place in which the business of the society is carried on. Cooperative 14 Failure of a registered society to keep a copy of this Act Minor Societies Act and the regulations and its rules and a list of its (2020 Revision) members open to inspection, free of charge, at all reasonable times at the registered address of the society. Cooperative 25 A person becoming a member of more than one Serious Societies Act registered society with unlimited liability, whose primary (2020 Revision) object is to grant loans to its members, without the sanction of the Registrar. Cooperative 28 A member, other than a registered society, holding Serious Societies Act more than such portion of share capital of the society, (2020 Revision) where the liability of the members of the registered society is limited by shares, subject to a maximum of Page 52 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule twenty per cent, as may be prescribed by the rules. Cooperative 29(4) 1. A credit union which may issue shares which carry Serious Societies Act voting rights, issuing shares representing ten per (2020 Revision) cent or more of total voting rights of the credit union to a member. 2. A member transferring or disposing of issued shares representing ten per cent or more of the total voting rights of the credit union, without the prior approval of the Authority. Cooperative 29(6) Failure of a credit union, for the purposes of section Serious Societies Act 29(4), to provide such information to the Authority, and (2020 Revision) within such time as the Authority may specify, for the purpose of assessing whether persons acquiring control or ownership of such shares representing ten per cent or more of the total voting rights of the credit union are fit and proper persons to have such control or ownership. Cooperative 31 A registered society making a loan to any person other Serious Societies Act than a member or another registered society. (2020 Revision) Cooperative 32 Failure of a registered society to receive deposits and Serious Societies Act loans from persons who are not members, in (2020 Revision) accordance with the prescribed conditions. Cooperative 34(1) A registered society paying a dividend or bonus or Very serious Societies Act distributing any part of its accumulated funds before the (2020 Revision) balance sheet has been certified — (a) in the case of a society other than a credit union, by an auditor approved by the Registrar; and (b) in the case of a credit union, by an auditor approved by the Authority. Cooperative 34(2) A registered society declaring any dividend exceeding Very serious Societies Act six per cent per annum. (2020 Revision) Cooperative 35(1) Failure of a registered society which does or can derive Serious Societies Act profit from its transactions, to maintain a reserve fund. (2020 Revision) c Revised as at 31st December, 2021 Page 53 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Cooperative 35(2) 1. Failure of a registered society to carry to the reserve Serious Societies Act fund at least twenty per cent of the net profits of (2020 Revision) every registered society as ascertained by the audit prescribed by section 39 or 45, as the case may be. 2. Failure of a registered society to employ the reserve fund as prescribed by the regulations. Cooperative 38A 1. Failure of a credit union to obtain the approval of the Serious Societies Act Authority prior to appointing a director or senior (2020 Revision) officer. 2. Failure of a credit union to require the director or senior officer to be a fit and proper person. Cooperative 39(1) Failure of a credit union to have its accounts audited Serious Societies Act annually or at such other times as the Authority may (2020 Revision) require, by an auditor, who is a chartered accountant, a certified public accountant, or some other professionally qualified accountant, approved by the Authority. Cooperative 39(2) Failure of a credit union to forward the audited accounts Minor Societies Act to the Authority within three months of the end of the (2020 Revision) financial year of the credit union, unless prior written approval for an extension has been granted by the Authority. Cooperative 39A(1) Failure of an auditor to immediately give the Authority Serious Societies Act written notice of the information or suspicion and, in the (2020 Revision) case of suspicion, the auditor’s reason for that suspicion if an auditor, in the course of carrying out an audit of the accounts of a credit union under this Act, obtains information or suspects that the credit union is — (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or winding up its business voluntarily in a manner that is prejudicial to its members; (c) carrying on or attempting to carry on Page 54 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business otherwise than in compliance with — (i) the Act or the Regulations; (ii) the Monetary Authority Act (2020 Revision); or (iii) the Anti-Money Laundering Regulations (2020 Revision). Cooperative 39A(3) A credit union appointing as an auditor a person Serious Societies Act disqualified under subsection (2). (2020 Revision) Cooperative 39A(5) Where a credit union changes its auditor, failure of a Serious Societies Act former auditor to explain the reasons for the change (2020 Revision) where required by the Authority to explain such reasons. Cooperative 40(3) 1. Failure of a credit union to grant the Authority access Serious Societies Act to such books, records, vouchers, documents, cash (2020 Revision) and securities of the credit union. 2. Failure of a person who the Authority has reasonable grounds to believe is carrying on business in contravention of this Act to provide such information, matter or thing requested from the person, by the Authority, in such form as the Authority may reasonably require. 3. Failure of the committee of a credit union, or any officer designated by the committee to provide to the Authority such information or explanation, as the Authority may reasonably require for the purpose of enabling it to perform its functions under this Act. Cooperative 42(5) A person obstructing the Authority or any other person Serious Societies Act in exercise of its powers conferred under section 42. c Revised as at 31st December, 2021 Page 55 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2020 Revision) Cooperative 61(2) Failure of a registered society to send to the Registrar, Serious Societies Act a copy of every special resolution, signed by the (2020 Revision) chairperson of the meeting at which the resolution was confirmed and countersigned by the secretary of the society. Cooperative 66 A person other than — Serious Societies Act (a) a registered society; or (2020 Revision) (b) any person or that person’s successor in interest who traded or carried on business at the time of the passing of this Act, trading or carrying on business under any name or title of which the word “cooperative” or “cooperation” or any abbreviation, or the words “credit union” or “credit unions” or any abbreviation is part. Cooperative 68(1)(a) A registered society and every officer or member of the Serious Societies Act registered society wilfully neglecting or refusing to do (2020 Revision) any act or to furnish any information required for the purposes of this Act by the Authority or the Registrar or other person duly authorised by the Registrar in writing in that behalf. Cooperative 68(1)(b) A registered society and every officer or member of the Serious Societies Act registered society wilfully making a false return or (2020 Revision) furnishing any false information. Cooperative 68(2)(a) A person wilfully or without any reasonable excuse, Serious Societies Act disobeying any summons, requisition or lawfully written (2020 Revision) order issued under this Act. Cooperative 68(2)(b) A person failing to furnish any information lawfully Serious Societies Act required from that person by a person authorised to do (2020 Revision) so under this Act. Cooperative 69 A person obtaining possession of any property of a Serious Societies Act society by false representation or imposition, or (2020 Revision) obtaining possession of any property of a society and withholding or misplacing the same, or wilfully applying any part of the property to purposes other than those Page 56 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule expressed, or directed in the rules of the society and authorised by this Act. 7 - Development Bank Act 7. DEVELOPMENT BANK ACT (2018 REVISION) Development 5(1) Failure of the Board to appoint a general manager to be Serious Bank Act (2018 the chief executive officer of the Bank. Revision) Development 5(3) Failure of the Board to appoint officers to be responsible Serious Bank Act (2018 for — Revision) (a) managing the loan portfolio and the loan administration process of the Bank; (b) managing and recording the funds of the Bank and managing all financial transactions of the Bank; and (c) establishing, maintaining and reviewing the internal controls established by the Bank in order to assess compliance with the established policies of the Bank. Development 19 The Bank allowing the aggregate of the liabilities of the Serious Bank Act (2018 Bank outstanding at any one time including bonds and Revision) debentures issued by the Bank, to exceed the amount of the authorised capital or such sum as may be provided for in regulations made under section 31, without the written approval of the Cabinet. Development 20 1. Failure of the Bank to establish and maintain a Serious Bank Act (2018 reserve fund. Revision) 2. Failure of the Bank to allocate to the reserve fund, at the end of its financial year, not less than twenty per cent of the net income for that financial year whenever the total amount standing to the credit of such reserve is less than the paid-up portion of the authorised capital of the Bank. c Revised as at 31st December, 2021 Page 57 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Development 21(1) 1. Failure of the Bank to keep proper accounting Serious Bank Act (2018 records in accordance with generally accepted Revision) accounting principles. 2. Failure of the Bank to prepare a statement of accounts in respect of each financial year. Development 21(3) Failure of the Bank to have its statement of accounts Serious Bank Act (2018 audited annually by an auditor who is a chartered Revision) accountant, a certified public accountant, a firm of professional qualified accountants or other professionally qualified accountant appointed by the Board, after consultation with the Authority. Development 21(4) Failure of the Bank to give to the auditor on request — Serious Bank Act (2018 (a) access to all books, documents, and Revision) records (including any held by means of computer), and copies of any such items; (b) all such information as the auditor may request and which is within the Bank’s knowledge and capabilities; and (c) copies of the statement of accounts for any previous financial year. Development 21(5) 1. Failure of the auditor to complete the audit and send Serious Bank Act (2018 to the Board copies of that auditor’s report on the Revision) statement of accounts. 2. Failure of the Board to submit the auditor’s report annually to the Minister, the Authority and the Financial Secretary within three months of the end of the financial year together with an audited balance sheet and income and expenditure accounts as at the close of the previous financial year. Development 22(1) Failure of the Bank to prepare a report, in a form Serious Bank Act (2018 approved by the Minister, of what has been done in the Revision) discharge of the Bank’s functions in a financial year, as soon as possible after the end of that financial year and in any event not later than seven months after the end of that financial year. Development 23(2) Failure of the Bank to at all times, as may be specified Serious Page 58 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Bank Act (2018 by the Authority, furnish to the Authority such returns in Revision) respect of such of its business as the Authority may specify in writing and in such form as the Authority may reasonably require. Development 23(3) Failure of the Bank, within three months of the end of Serious Bank Act the financial year of the Bank, to forward to the Authority (2018 Revision) an auditor’s certificate of the existence of adequate procedures to ensure compliance with the Anti-Money Laundering Regulations (2020 Revision) and any Code of Practice which may be issued under sections 113 or 180 of the Proceeds of Crime Act (2020 Revision). Development 23(8) 1. Failure of Bank to grant the Authority access to such Serious Bank Act (2018 books, records, vouchers, documents, cash and Revision) securities of the Bank. 2. Failure of a director or officer of the Bank or any similar person to provide to the Authority such information, matter or thing requested from the director, officer or similar person, for such information or explanation, as the Authority may reasonably require for the purpose of enabling it to perform its functions under this Act. 3. Failure of a director or officer of the Bank or any similar person to provide such information requested by the Authority, in such form as the Authority may reasonably require. Development 25(5) A person obstructing the Authority or any other person Serious Bank Act (2018 in the exercise of any powers conferred under section Revision) 25. Development 27 The Bank including information with respect to any Very serious Bank Act (2018 particular individual or particular undertaking (other Revision) than the undertaking of the Bank) in any report laid before the Cayman Islands Parliament under this Act without the consent of the individual or undertaking. Development 29(1) Failure of the Bank, where the Bank has made a loan Minor Bank Act (2018 under this Act, to — c Revised as at 31st December, 2021 Page 59 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Revision) (a) from time to time, make or cause to be made such examination as may be necessary to ensure that the loan is being applied to the purpose for which it was made; (b) require financial statements in such detail as it may be determined to be submitted by the person in receipt of the loan biannually or at shorter intervals at the discretion of the Bank. Development 29(2) A person failing to submit any financial statement or to Minor Bank Act (2018 produce any book, document or other matter or thing Revision) demanded in accordance with subsection (1). 8 - Directors Registration and Licensing Act 8. DIRECTORS REGISTRATION AND LICENSING ACT, 2014 Directors 4(1) A natural person appointed as a director of a covered Very serious Registration and entity, subject to subsection (4), acting in that capacity Licensing Act, without being registered under this Act. 2014 Directors 4(2) A natural person who, on or after the date of Very serious Registration and commencement of this Act, is proposed to be appointed Licensing Act, as a director of a covered entity being appointed to act 2014 in that capacity without being registered by the Authority. Directors 4(3) Subject to subsection(4), a natural person who, prior to Very serious Registration and the date of commencement of this Act, is a director of a Licensing Act, covered entity continuing to act in that capacity on or 2014 after that date without making an application for registration, and being registered as a director, by the Authority. Directors 5(4) Failure of an applicant who has submitted an Serious Registration and application for registration to the Authority to, in the time Licensing Act, prescribed, cease to act as a director of a covered entity 2014 if, for any reason, the application for registration is Page 60 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule refused. Directors 6(2) 1. Failure of each registered director to pay to the Minor Registration and Authority the prescribed annual fee, on or before the Licensing Act, 15th January in each calendar year. 2014 2. Failure of each registered director who fails to pay the prescribed annual fee by the 15th January in each calendar year to pay a surcharge of one- twelfth of that fee for every month or part of a month after the 15th January in each year that the fee is not paid. Directors 6(2) Failure of each registered director to, on or before the Serious Registration and 15th January in each calendar year, provide to the Licensing Act, Authority the information in the prescribed form. 2014 Directors 6(3) Failure of a registered director to inform the Authority if Serious Registration and there is any change in the information provided to the Licensing Act, Authority for the registration of a director, within twenty- 2014 one days of the change. Directors 8(1) An applicant serving as a director for any covered entity Very serious Registration and where the Authority refuses to register an applicant Licensing Act, under this Part. 2014 Directors 9(1) Subject to subsection (4), a natural person being a Very serious Registration and professional director without holding a valid licence Licensing Act, issued under this Act. 2014 Directors 9(2) A natural person who, on or after the date of Very serious Registration and commencement of this Act proposes to be a Licensing Act, professional director being or carrying on business as a 2014 professional director without holding a valid licence issued under this Act. Directors 9(3) Subject to subsection (4), a natural person who is a Very serious Registration and professional director prior to the date of Licensing Act, commencement of this Act continuing to act in that c Revised as at 31st December, 2021 Page 61 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 2014 capacity on or after the date of commencement of this Act, without being licensed by the Authority. Directors 13(1) An applicant serving as a professional director for any Very serious Registration and covered entity where the Authority refuses to grant a Licensing Act, licence to an applicant under Part III. 2014 Directors 14(1)(a) Failure of a professional director who is granted a Minor Registration and licence under Part III to, upon the grant of the license, Licensing Act, pay the prescribed licence fee to the Authority. 2014 Directors 14(1)(b) Failure of a professional director, who is granted a Very serious Registration and licence under Part III to, upon the grant of the license, Licensing Act, comply with the conditions of the licence. 2014 Directors 14(2) 1. Failure of a licensed professional director to, on or Minor Registration and before the 15th January in each calendar year pay Licensing Act, to the Authority the prescribed annual fee. 2014 2. Failure of a licensed professional director who fails to pay the prescribed annual fee on or before the 15th January in each calendar year, to pay a surcharge of one-twelfth of that fee for every month or part of a month after the 15th January in each year that the fee is not paid. Directors 14(2) Failure of a licensed professional director to, on or Serious Registration and before the 15th January in each calendar year, provide Licensing Act, to the Authority the information in the prescribed form. 2014 Directors 14(3) Failure of a professional director to inform the Authority Serious Registration and if there is any change in the information provided to the Licensing Act, Authority for the grant of a licence, within twenty-one 2014 days of the change. Directors 15(1) Failure of a professional director to at all times be Serious Registration and covered by insurance with an insurer, to cover loss Licensing Act, arising from claims in respect of civil liability incurred in 2014 connection with the business of the professional Page 62 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule director, in an amount which is a minimum aggregate cover of one million dollars and a minimum cover of one million dollars for each and every claim. Directors 15(2) Failure of a professional director to file with the Minor Registration and Authority current details of the insurance required under Licensing Act, subsection (1). 2014 Directors 17(1) A corporate director appointed as a director of a Very serious Registration and covered entity, subject to section 22, acting in that Licensing Act, capacity without being licensed as a corporate director 2014 under this Act. Directors 17(2) A corporate director who, on or after the date of Serious Registration and commencement of this Act, is proposed to be appointed Licensing Act, as a director of a covered entity being appointed to act 2014 in that capacity without being licensed as a corporate director under this Act. Directors 18(7) 1. Failure of a licensed corporate director to, on or Serious Registration and before the 15th January in each calendar year, pay Licensing Act, to the Authority the prescribed annual fee. 2014 2. Failure of a licensed corporate director who fails to pay the prescribed annual fee on or before the 15th January in each calendar year, to pay a surcharge of one-twelfth of that fee for every month or part of a month after the 15th January in each year that the fee is not paid. Directors 1. Failure of each licensed corporate director to on or Minor Registration and 18(7) before the 15th January in each calendar year, pay Licensing Act, to the Authority the prescribed annual fee. 2014 2. Failure of each licensed corporate director who fails to pay the prescribed annual fee, a surcharge of one- twelfth of that fee for every month or part of a month after the 15th January in each year that the fee is not paid. Directors 18(8) Failure of a corporate director to within twenty-one days Serious Registration and of any change in the information provided to the c Revised as at 31st December, 2021 Page 63 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Licensing Act, Authority for the grant of a licence under Part IV, inform 2014 the Authority of the change. Directors 20(1) Failure of a corporate director to — Serious Registration and (a) be registered as an ordinary resident Licensing Act, company, an ordinary non-resident 2014 company, an exempted company or foreign company in accordance with the Companies Act (2022 Revision); (b) appoint to its Board at least two natural persons who are registered or licensed under this Act; (c) before the appointment of any new or additional person to its Board, apply to the Authority for its written approval of that appointment. Directors 21(1) Failure of the subsidiary, whether wholly owned or Very serious Registration and otherwise, of — Licensing Act, (a) a corporate director; 2014 (b) the holder of a mutual funds administrators licence; or (c) the holder of a companies management licence, that is appointed to act as a director of a covered entity to be licensed under this Act unless that subsidiary holds a mutual funds administrators licence or a companies management licence. Directors 21(2) Failure of a corporate director to at all times be covered Serious Registration and by insurance with an insurer, to cover loss arising from Licensing Act, claims in respect of civil liability incurred in connection 2014 with the business of the corporate director, in an amount which is a minimum aggregate cover of one million dollars and a minimum cover of one million dollars for each and every claim. Directors 21(3) Failure of a corporate director to file with the Authority Minor Registration and current details of the insurance required under Licensing Act, subsection (2) 2014 Directors 24(2) 1. Failure of — Serious Page 64 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Registration and (a) a person whom the Authority reasonably Licensing Act, believes is acting as a director of a covered 2014 entity in contravention of this Act; (b) a registered director, professional director or corporate director; or (c) any person whom the Authority reasonably believes has relevant information relating to (a) or (b), to provide access to and allow copies to be made of any books, records or documents that the Authority may reasonably require. 2. Failure of — (a) a person whom the Authority reasonably believes is acting as a director of a covered entity in contravention of this Act; (b) a registered director, professional director or corporate director; or (c) any person whom the Authority reasonably believes has relevant information relating to (a) or (b), to furnish any information or explanation the Authority may reasonably require for the performance of its functions under this Act or the Monetary Authority Act (2020 Revision). Directors 24(5) A person to whom subsection (2) applies knowingly or Very serious Registration and recklessly, furnishing any information, providing any Licensing Act, explanation or making any statement to the Authority 2014 which is false or misleading in a material particular. 9 - Insurance Act 9. INSURANCE ACT, 2010 Insurance Act, 3(1) A person carrying on — Very serious 2010 (a) insurance business; (b) reinsurance business; or (c) business as an insurance agent, insurance broker, or insurance c Revised as at 31st December, 2021 Page 65 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule manager, without holding a valid licence issued for that purpose under this Act. Insurance Act, 4(4)(b) Failure of an insurer that is not a class D insurer and Serious 2010 not a class B insurer incorporated as a segregated portfolio company under Part XIV of the Companies Act (2022 Revision) to be separately licensed for long term business and for general business. Insurance Act, 4(4)(d) Failure of an insurance manager who also carries on Serious 2010 business as either an insurance broker or an insurance agent to be separately licensed in respect of each such activity. Insurance Act, 7(1) Failure of a licensee to pay the prescribed annual fee in Minor 2010 respect of each category of licence held on or before every 15th day of January after the first grant of the licence. Insurance Act, 7(2) Failure of a licensee who fails to pay the prescribed Minor 2010 annual fee by the date specified in subsection (1), to pay to the general revenue of the Islands, a surcharge not exceeding one-twelfth of the prescribed annual fee for every month or part of a month that the prescribed annual fee is not paid, unless the Authority waives the surcharge. Insurance Act, 8(1) 1. Failure of a licensee to carry on insurance business Very serious 2010 only in accordance with the information given in its approved licence application and business plan. 2. Failure of a licensee to seek the prior written approval of the Authority for any change to the approved business plan or in the information supplied in the application. 3. A licensee — (a) opening outside the Islands a subsidiary, branch, agency or representative office or changing its name; or (b) where it is an insurer other than an external insurer conducting insurance business — Page 66 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (i) other than long term business, amalgamating with any one or more insurers or, (ii) other than in the normal course of business, transferring its insurance operations or any part thereof, or accepting transfer of the insurance operations or any part thereof from another insurer, without the prior written approval of the Authority. 4. Failure of a licensee that is required to have a place of business in the Islands to maintain in the Islands such resources, including staff and facilities, books and records as the Authority may consider appropriate, having regard to the nature and scale of the business. Insurance Act, 8(2) Failure of an insurer to — Very serious 2010 (a) maintain a margin of solvency in accordance with the prescribed solvency requirements; (b) maintain adequate arrangements for the management of risks, including the reinsurance thereof where appropriate; (c) maintain capital in accordance with the prescribed capital requirements; (d) authorise at least one person resident in the Islands and approved by the Authority to accept on its behalf service of process in any legal proceedings and any notices required to be served on it; (e) where it is a member of an insurance group, inform the Authority of any activity or transaction undertaken or proposed by another member of the group that could reasonably be expected to have a material effect on the insurer; (f) where it is an external insurer, be responsible for all contracts of domestic business issued by any branch or subsidiary and also for all acts, omissions and liabilities of such branch or subsidiary activity; or (g) maintain an effective system of governance as approved by the Authority. c Revised as at 31st December, 2021 Page 67 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Insurance Act, 8(3) Failure of an insurance agent, insurance broker or an Very serious 2010 insurance manager to establish and maintain a separate account for the brokerage, agency and management account separate from the accounts maintained for each insurer. Insurance Act, 8(4) Failure of a class B insurer that is established as a Very serious 2010 segregated portfolio company under Part XIV of the Companies Act (2022 Revision) to, in respect of each segregated portfolio — (a) maintain the prescribed margin of solvency; (b) unless waived by the Authority, comply with section 9(1)(a) and (c); and (c) cause each submission under paragraph (b) to be prepared using the same financial year end. Insurance Act, 9(1) 1. Failure of an insurer, except as otherwise approved Serious 2010 by the Authority in writing and subject to subsection (3), to submit to the Authority by way of annual return, within six months of the end of its financial year all or any of the following — (a) audited financial statements prepared in accordance with internationally recognised accounting standards by an independent auditor approved by the Authority, together with a copy of any prescribed management letter issued by the auditor; (b) an actuarial valuation of its assets and liabilities including loss and loss expense provisions, certified by an actuary approved by the Authority; (c) certification of solvency prepared by a person approved by the Authority in accordance with the prescribed requirements; (d) written confirmation that the information set out in the application for the licence, as modified by any subsequent changes approved by the Authority, remains correct; or (e) such other information as may be prescribed. Page 68 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Insurance Act, 9(2) Failure of a class A insurer to, except as otherwise Serious 2010 approved in writing by the Authority, submit in the return under subsection (1) — (a) a list of insurance agents and insurance brokers who have the class A insurer’s authority to solicit domestic business on its behalf; and (b) confirmation that the class A insurer is satisfied that the agents are fit and proper persons and have complied with the applicable requirements under this Act. Insurance Act, 9(4) 1. Failure of an insurer to disclose the standards Serious 2010 applied in the audited financial statements and actuarial valuation referred to in subsection (1)(a) and (b). 2. Failure of a class A insurer or class D insurer to publish its audited financial statements at a time no later than the time that it submits them to the Authority. 3. Failure of a class B(iii) insurer to make its audited financial statements available to insured persons, third party beneficiaries, and such other persons as may be prescribed, on request. Insurance Act, 10 1. Failure of an insurance broker or an insurance Serious 2010 manager to, except as otherwise approved by the Authority in writing, submit to the Authority by way of annual return, within six months of the end of its financial year — (a) financial statements prepared in accordance with internationally recognised accounting standards; (b) written confirmation that the information set out in the licence application, as modified by any subsequent changes approved by the Authority, remains correct; (c) evidence of adequate professional indemnity insurance as required under section 13; and (d) such other information as may be c Revised as at 31st December, 2021 Page 69 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule prescribed. 2. Failure of an insurance broker to, except as otherwise approved by the Authority in writing, in respect of domestic business, submit a list of all insurers for whom the insurance broker is authorised to act, commissions received from each insurer and the premium income received on behalf of and remitted to each such insurer during the financial year. 3. Failure of an insurance manager to, except as otherwise approved by the Authority in writing, submit a list of all insurers for whom the insurance manager acts. Insurance Act, 11 Failure of an insurance agent to, except as otherwise Serious 2010 approved by the Authority in writing, submit to the Authority by way of annual return within six months of the end of the calendar year, in respect of the insurance agent’s domestic business — (a) confirmation in writing that the insurance agent is acting for no more than two insurers and the names of those insurers; (b) evidence of the existence of a power of attorney, agency agreement or guarantee or professional indemnity insurance as required under section 14; and (c) confirmation in writing that the information set out in the insurance agent’s application for the licence, as modified by any subsequent changes approved by the Authority, remains correct. Insurance Act, 12(1) 1. A licensee issuing shares totalling more than ten per Serious 2010 cent of the authorised share capital of a company that is a licensee under this Act, without the prior approval of the Authority. 2. A licensee transferring or disposing of in any manner, issued shares totalling more than ten per cent of the issued share capital or total voting rights of a company that is a licensee under this Act, Page 70 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule without the prior approval of the Authority. Insurance Act, 12(2) Failure of a licensee under subsection (1) to provide Serious 2010 such information to the Authority, and within such period of time, as the Authority may require for the purpose of assessing whether persons acquiring control or ownership of such shares or voting rights in the licensee are fit and proper persons to have such control or ownership. Insurance Act, 20(1) Failure of an auditor to immediately give the Authority Serious 2010 written notice of the auditor’s information or suspicion, and in the case of suspicion, the auditor’s reason for that suspicion if the auditor, where in the course of carrying out an audit of the accounts of a licensee under this Act, the auditor obtains information or suspects that the licensee is — (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or winding up its business voluntarily in a manner that is prejudicial to its policyholders or creditors; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business otherwise than in compliance with — (i) the Act or the Regulations; (ia) Part XVIIA of the Companies Act (2022 Revision), Part 12 of the Limited Liability Companies Act (2021 Revision) or Part 8 of the Limited Liability Partnership Act (2021 Revision), if the licensee is a “corporate services provider” as defined in that Part; (ii) the Monetary Authority Act (2020 Revision); c Revised as at 31st December, 2021 Page 71 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (iii) the Anti-Money Laundering Regulations (2020 Revision); or (iv) a condition of the licence. Insurance Act, 20(3) A licensee appointing as an auditor a person Serious 2010 disqualified under subsection (2). Insurance Act, 20(5) When a licensee changes its auditor, failure of the Serious 2010 former auditor to explain the reasons for the change if required by the Authority to do so.

Insurance Act, 21(2) Failure of an insurance manager to report to the Serious 2010 Authority if the insurance manager in respect of any insurer for or with whom the insurance manager is managing insurance business — (a) has concerns regarding the fitness and probity of the insurer; (b) obtains information or suspects that the insurer is unable or likely to become unable to meet its obligations as they fall due; (c) obtains information or suspects that the insurer is carrying on or attempting to carry on business in a fraudulent or criminal manner; (d) obtains information that the insurer is involved in any criminal proceedings, whether in the Islands or abroad; (e) obtains information about a material change in the nature of the insurer’s business that has not been reported to the Authority; (f) in relation to a class B(i) insurer or class B(ii), obtains information that the limit on unrelated business is exceeded; or (g) obtains information or suspects that the insurer is carrying on or attempting to carry on business otherwise than in compliance with — (i) this Act or the Regulations; (ia) Part XVIIA of the Companies Act (2022 Revision), Part 12 of the Limited Liability Companies Act (2021 Revision) or Part 8 of the Limited Liability Partnership Act (2021 Revision); Page 72 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (ii) the Monetary Authority Act (2020 Revision); (iii) the Anti-Money Laundering Regulations (2020 Revision); or (iv) a condition of its licence. Insurance Act, 23(1) Failure of a licensee in relation to a policy, a line of Very serious 2010 business or the entire business of the licensee, to comply with a direction given by the Authority to cease or refrain from committing certain acts or pursuing a particular course of conduct, and to perform such acts as in the opinion of the Authority are necessary to remedy or ameliorate the situation. Insurance Act, 28D Failure of a portfolio insurance company to — Serious 2010 (a) at all times be controlled by a relevant insurer; (b) include in its name the letters “PIC” or “P.I.C.” or the words “Portfolio Insurance Company”; (c) carry on insurance business only in accordance with the information given in its business plan and seek the prior written approval of the Authority for any change to the approved business plan; (d) without the prior written approval of the Authority — (i) open outside the Islands a subsidiary, branch, agency or representative office or change its name; or (ii) where it is conducting insurance business other than long term business, amalgamate with any one or more insurers or other portfolio insurance companies or, other than in the normal course of business, transfer its insurance operations or any part thereof, or accept transfer of the insurance operations or any part thereof from an insurer or portfolio insurance company; (e) maintain a margin of solvency in accordance with the prescribed solvency requirements; (f) maintain adequate arrangements for the c Revised as at 31st December, 2021 Page 73 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule management of risks, including the reinsurance thereof where appropriate; (g) maintain capital in accordance with the prescribed capital requirements; (h) maintain an effective system of governance approved by the Authority; and (i) where its controlling relevant insurer is a class B (iii) insurer or a class B (iv) insurer, make its audited financial statements available to insured persons, third party beneficiaries, and any other persons that may be prescribed, on request. Insurance Act, 28E(1) Failure of a portfolio insurance company to, except as Serious 2010 otherwise provided by the Authority in writing and subject to subsection (2), submit to the Authority by way of annual return, within six months of the end of its financial year — (a) unless waived by the Authority, audited financial statements prepared in accordance with internationally recognised accounting standards by an independent auditor approved by the Authority, together with a copy of any prescribed management letter issued by the auditor; (b) an actuarial valuation of its assets and liabilities including loss and loss expense provisions, certified by an actuary approved by the Authority; (c) unless waived by the Authority, certification of solvency prepared by a person approved by the Authority in accordance with the prescribed requirements; and (d) any other information as may be prescribed. Insurance Act, 28E(2) Failure of a portfolio insurance company that — Serious 2010 (a) does not conduct long term business; or (b) conducts insurance business of the type described in section 4(3)(c), to comply with subsection (1)(a) or (d). Insurance Act, 28E(3) Failure of a portfolio insurance company to ensure that Serious Page 74 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 2010 the audited financial statements and actuarial valuation referred to in subsections (1)(a) and (b) disclose the standards applied. Insurance Act, 28F A relevant insurer controlling more than one portfolio Serious 2010 insurance company on behalf of any relevant segregated portfolio. Insurance Act, 28G Failure of a portfolio insurance company to have a Serious 2010 minimum of two directors. Insurance Act, 28I(1) Failure of a portfolio insurance company to appoint the Serious 2010 same insurance manager as its controlling relevant insurer. Failure of a portfolio insurance company to maintain, at the insurance manager’s place of business or at another location approved by the Authority, full and proper records of the business activities of the portfolio insurance company sufficient to — (a) explain the transactions of the portfolio insurance company; (b) disclose, with reasonable accuracy, at any time the state of the affairs of the portfolio insurance company; and (c) enable the portfolio insurance company to prepare annual financial statements. Insurance Act, 28I(4) Failure of a portfolio insurance company to have the Serious 2010 same registered office as its controlling relevant insurer. Insurance Act, 28O(1) A portfolio insurance company issuing, transferring or Serious 2010 disposing of voting shares in the portfolio insurance company without the prior approval of the Authority. Insurance Act, 28O(2) 1. A portfolio insurance company issuing non-voting Serious 2010 shares totalling more than ten per cent of the entire authorised share capital of a portfolio insurance company without the prior approval of the Authority. 2. A portfolio insurance company transferring or disposing of issued non-voting shares totalling more than ten per cent of the entire authorised share capital of the portfolio insurance company, without c Revised as at 31st December, 2021 Page 75 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule the prior approval of the Authority. Insurance Act, 28O(3) Failure of a portfolio insurance company, for the Serious 2010 purpose of subsections (1) and (2), to provide the information to the Authority, within the period of time, the Authority requires for the purposes of assessing whether persons acquiring control or ownership of shares in the portfolio insurance company are fit and proper persons to have control or ownership. Insurance Act, 28R(3) A director knowingly making a declaration under Serious 2010 subsection (1)(a) without reasonable grounds or knowingly making a false declaration. Insurance Act, 28S A portfolio insurance company, applicant for Very serious 2010 registration as a portfolio insurance company, or any director or officer of a portfolio insurance company or of an applicant knowingly or wilfully supplying false or misleading information to the Authority. Insurance Act, 29(1) Failure of an insurer, subject to subsection (2), to Serious 2010 ensure that all proceeds paid or payable to a policy holder or a beneficiary under a contract of insurance in respect of long term business issued by the insurer, inures exclusively for the benefit of the policy holder or the beneficiary in accordance with the terms of the contract and in accordance with paragraphs (a) and (b). Insurance Act, 36(1)(a) A person who is not a licensee or has not been Serious 2010 approved by the Authority using or continuing to use, in English or in any other language, the words “insurance”, “assurance”, “indemnity”, “guarantee”, “underwriting”, “reinsurance”, “surety”, “casualty” or any other word which in the opinion of the Authority connotes insurance business or any of their derivatives in the description or title under which the person carries on business in or from within the Islands. Insurance Act, 36(1)(b) A person who is not a licensee or has not been Serious 2010 approved by the Authority making or continuing to make any representation in any billhead, letter, letterhead, circular, paper, notice or advertisement, or by any manner whatsoever, that the person is carrying on Page 76 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule insurance business. Insurance Act, 37 A licensee, applicant for a licence, or any director or Very serious 2010 officer of a licensee or of an applicant knowingly or wilfully supplying false or misleading information to the Authority. Insurance Act, 38 A person knowingly making, issuing or permitting to be Serious 2010 made or issued any representation about or description of the person’s insurance business, by whatever form or method, that is misleading or likely to be misleading to the public. 10 - Insurance (Capital and Solvency) (Class A Insurers) Regulations 10. INSURANCE (CAPITAL AND SOLVENCY) (CLASS A INSURERS) REGULATIONS, 2012 Insurance 4(1) Failure of a class A insurer to maintain adequate Serious (Capital and financial resources to meet its insurance business Solvency) commitments and adequately manage its risks as (Class A required by the Insurance Act, 2010 [Law 32 of 2010]. Insurers) Regulations, 2012 Insurance 5(1) Failure of a class A external insurer that carries on Very serious (Capital and domestic business, except as otherwise approved by Solvency) the Authority, to place and at all times maintain upon (Class A trust, with a person approved by the Authority, in a Insurers) segregated account at a bank in the Islands which holds Regulations, an “A” licence issued under the Banks and Trust 2012 Companies Act (2021 Revision) assets in an amount at least equal to the prescribed capital requirement. Insurance 6(1) Failure of a class A insurer that is a local insurer to Very serious (Capital and ensure that the available capital of the class A insurer Solvency) exceeds the minimum capital requirement at all times. (Class A Insurers) c Revised as at 31st December, 2021 Page 77 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Regulations, 2012 Insurance 6(3) Failure of a class A insurer to ensure that the class A Very serious (Capital and insurer’s available capital exceeds the prescribed Solvency) capital requirement, unless otherwise approved by the (Class A Authority. Insurers) Regulations, 2012 Insurance 6(5) Failure of a class A insurer to ensure that if the Authority Very serious (Capital and sets an enhanced prescribed capital requirement for an Solvency) insurer pursuant to paragraph (4), the available capital (Class A of the insurer is equal to or exceeds the enhanced Insurers) prescribed capital requirement until such time as the Regulations, Authority directs otherwise. 2012 Insurance 6(6) Failure of a class A insurer to, at the end of each Serious (Capital and quarter, calculate, using net written premium for the Solvency) twelve months ending in that quarter, and record the (Class A minimum capital requirement and prescribed capital Insurers) requirement and if required the enhanced prescribed Regulations, capital requirement, in the format prescribed in 2012 Schedule 2. Insurance 6(8) 1. Failure of a class A insurer to maintain the Serious (Capital and calculation required under subsection (6) at the Solvency) insurer’s principal place of business in the Islands (Class A for a period of five years from the completion of the Insurers) calculation. Regulations, 2012 2. Failure of a class A insurer to produce the calculations to the Authority if so directed by it on or before a date specified in the direction. Insurance 6(9) Failure of a class A insurer to notify the Authority within Serious (Capital and thirty business days of the end of each quarter where it Solvency) fails to meet the minimum capital requirement, (Class A prescribed capital requirement or enhanced prescribed Insurers) capital requirement. Regulations, Page 78 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 2012 Insurance 6(11) Failure of a class A insurer to comply with any Very serious (Capital and requirement or direction imposed by the Authority Solvency) pursuant to paragraph (10) within the time period (Class A specified by the Authority. Insurers) Regulations, 2012 Insurance 7(1) Failure of a class A insurer to hold capital for its Serious (Capital and subsidiaries equivalent to the book value of the Solvency) investments in the subsidiaries or associates that are (Class A not regulated financial institutions. Insurers) Regulations, 2012 Insurance 7(2) Failure of a class A insurer which holds a controlling Serious (Capital and interest in a subsidiary that is a regulated financial Solvency) institution to, on a consolidated basis, calculate the (Class A difference between — Insurers) (a) the amount of capital the subsidiary would Regulations, require to meet the minimum capital 2012 requirement if the minimum capital requirement applied to it; and (b) the capital available to the subsidiary after the subtraction of all applicable deductions. Insurance 7(3) Failure of a class A insurer which owns less than one Serious (Capital and hundred per cent of the regulated financial institution Solvency) subsidiary, to include its pro rata share of the (Class A subsidiary’s capital available and capital required in the Insurers) minimum capital requirement calculation. Regulations, 2012 Insurance 7(4) Failure of a class A insurer to, in the event that the Minor (Capital and subsidiary’s capital available exceeds its minimum Solvency) capital requirement, add the excess to the capital (Class A available to the parent company. Insurers) Regulations, c Revised as at 31st December, 2021 Page 79 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 2012 Insurance 7(5) Failure of a class A insurer to, in the event that the Serious (Capital and subsidiary’s capital available is less than its minimum Solvency) capital requirement, add the shortfall to the minimum (Class A capital requirement of the parent company. Insurers) Regulations, 2012 Insurance 10(2) Failure of a class A insurer to maintain the margins for Serious (Capital and a class A insurer writing general business as specified Solvency) in Schedule 3 for each class of business. (Class A Insurers) Regulations, 2012 Insurance 10(3) Failure of a class A insurer to maintain the margin for a Serious (Capital and class A insurer writing long-term business at a minimum Solvency) of two and a half per cent of discounted policy liabilities (Class A excluding pension and annuity reserves. Insurers) Regulations, 2012 Insurance 11(1) Failure of a class A insurer to apply a risk margin for all Very serious (Capital and business exposed to catastrophe risks. Solvency) (Class A Insurers) Regulations, 2012 Insurance 11(2) 1. Failure of a class A insurer to notify the Authority of Minor (Capital and which method will be employed for the calculation of Solvency) its catastrophe margin. (Class A Insurers) 2. A class A insurer changing methods for the Regulations, calculation of its catastrophe margin without the prior 2012 approval of the Authority. Insurance 12(1) Failure of a class A insurer to apply a risk margin under Very serious Page 80 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (Capital and regulation 11 which equals the per event excess Solvency) retention for all lines exposed to catastrophe losses (Class A plus the cost of one reinstatement of catastrophe Insurers) reinsurance cover in cases where the reinstatement Regulations, reinsurance cover has not been pre-paid by the insurer. 2012 11 - Insurance (Capital and Solvency) (Classes B, C, and Insurers) Regulations 11. INSURANCE (CAPITAL AND SOLVENCY) (CLASSES B, C, AND D INSURERS) REGULATIONS (2018 REVISION) Insurance 9(1) Failure of a Class B insurer, Class C insurer or Class D Very serious (Capital and insurer to keep solvency equal to or in excess of the Solvency) total prescribed capital requirement, unless otherwise (Classes B, C, approved by the Authority. and D Insurers) Regulations (2018 Revision) Insurance 9(2) Failure of a licensee to meet with the Authority and Very serious (Capital and present a remedial action plan to the Authority where Solvency) the capital of a licensee falls below the prescribed (Classes B, C, capital requirement but is greater than minimum capital and D Insurers) requirement Regulations (2018 Revision) Insurance 10(1) Failure of an insurer to, on or before its filing date, Serious (Capital and furnish the Authority with the insurer’s capital and Solvency) solvency return. (Classes B, C, and D Insurers) Regulations (2018 Revision) Insurance 10(2) Failure of an insurer to keep a copy of its capital and Serious (Capital and solvency return at its principal office for a period of five Solvency) years beginning with its filing date, and produce it to the c Revised as at 31st December, 2021 Page 81 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (Classes B, C, Authority if so directed by it on or before a date specified and D Insurers) in the direction. Regulations (2018 Revision) 12 - Monetary Authority Act 12. MONETARY AUTHORITY ACT (2020 REVISION) Monetary 34(17)(a) A person without reasonable cause failing to comply Very serious Authority Act with a requirement of the Authority under subsection (8) (2020 Revision) or a direction of the Authority under subsection (9). Monetary 34(17)(b) A person without reasonable cause destroying, Very serious Authority Act mutilating, defacing, hiding or removing a document (2020 Revision) with intent to avoid the provisions of subsection (8) or (9). Monetary 34(17)(c) A person without reasonable cause wilfully obstructing Very serious Authority Act an inquiry by the Authority, made in accordance with (2020 Revision) subsection (8) or (9). 13 - Rule on Internal Controls 13. RULE ON INTERNAL CONTROLS – GENERAL FOR ALL LICENSEES MADE BY THE AUTHORITY PURSUANT TO SECTION 34(1)(A) OF THE MONETARY AUTHORITY ACT(2020 REVISION) Rule on Internal Failure of the licensee to establish, implement, and Controls – maintain internal controls, strategies, policies, and General for all procedures appropriate for the size, complexity, and Licensees made nature of its activities. by the Authority 4.1 Serious pursuant to section 34(1)(a) of the Monetary Authority Act Page 82 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2020 Revision) Rule on Internal Failure of the licensee to obtain Board of directors’ Controls – approval for internal controls, strategies, policies, and General for all procedures. Licensees made by the Authority pursuant to 4.2 Minor section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Internal Failure of the licensee to take necessary steps to Controls – monitor its internal controls. General for all Licensees made by the Authority pursuant to 4.3 Minor section 34(1)(a) of the Monetary Authority Act (2020 Revision) 14 - Rule on the Cancellation of a Licence or Certificate of Registration 14. RULE ON THE CANCELLATION OF A LICENCE OR CERTIFICATE OF REGISTRATION OF REGULATED MUTUAL FUNDS MADE BY THE AUTHORITY PURSUANT TO SECTION 34(1)(A) OF THE MONETARY AUTHORITY ACT (2020 REVISION) Rule on the Failure of a regulated mutual fund to make an Cancellation of application to the Authority for the Cancellation of a a Licence or Licence or Certificate of Registration when the fund Certificate of intends to cease to carry on, or has ceased to carry on, Registration of 4.1 business as a fund pursuant to the Mutual Funds Act Minor Regulated (2021 Revision) within — Mutual Funds (a) 21 days from the date the Fund ceases to made by the carry on business; or Authority (b) before December 31 of the year the Fund c Revised as at 31st December, 2021 Page 83 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule pursuant to ceases to carry on business. section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a fund that has never carried on business to Cancellation of make an application to the Authority for the cancellation a Licence or of a licence or de-registration within 21 days from the Certificate of date of the resolution that has been passed by the Registration of operators, shareholders or unit holders. Regulated Mutual Funds made by the 4.3 Minor Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Fund to pay the licence surrender fee or Cancellation of submit all documentation as prescribed in order to a Licence or cancel its Licence or Certificate of Registration. Certificate of Registration of Regulated Mutual Funds 4.4 Minor made by the Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) 15 - Rule on Country and Transfer Risk Management for Banks 15. RULE ON COUNTRY AND TRANSFER RISK MANAGEMENT FOR BANKS MADE BY THE AUTHORITY PURSUANT TO SECTION 34 OF THE MONETARY AUTHORITY ACT (2020 REVISION) Page 84 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on Country Failure of the bank to establish, implement, and and Transfer maintain strategies, policies, and procedures for Risk country and transfer risk management appropriate for Management for the size, complexity, and nature of its activities that set Banks made by operating limits or other practices for country and the Authority 4.1 transfer risk exposures. Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) Rule on Country Failure of the bank to obtain Board of directors’ and Transfer approval for strategies, policies, and procedures. Risk Management for Banks made by the Authority 4.2 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Rule on Country Failure of the bank to take necessary steps to measure, and Transfer monitor and control country and transfer risk. Risk Management for Banks made by the Authority 4.3 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) 16 - Rule on Corporate Governance for Insurers 16. RULE ON CORPORATE GOVERNANCE FOR INSURERS MADE BY THE AUTHORITY PURSUANT TO SECTION 34(1)(A) OF THE MONETARY AUTHORITY ACT (2020 REVISION) c Revised as at 31st December, 2021 Page 85 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on Failure of an insurer to establish, implement, and Corporate maintain a corporate governance framework which Governance for provides for sound and prudent management and Insurers made oversight of the insurer’s business and adequately by the Authority recognises and protects the interests of policyholders. pursuant to 5.1 Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.2 Failure of the insurer’s Governing Body to set and Corporate oversee the implementation of the insurer’s corporate Governance for culture, business objectives and strategies for Insurers made achieving those objectives, in line with the insurer’s by the Authority long term interests and viability, and the legitimate pursuant to interests of its stakeholders, including fair treatment of Serious section 34(1)(a) policyholders. of the Monetary Authority Act (2020 Revision) Rule on 5.3.1 Failure by an insurer to clearly define and document the Corporate roles and responsibilities allocated to the Governing Governance for Body, senior management and Control Functions, Insurers made where applicable, so as to promote an appropriate by the Authority separation of the oversight function from management pursuant to responsibilities. Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.3.2 Failure by the Governing Body to oversee senior Corporate management, including the appointment and dismissal Governance for of senior managers, set appropriate performance Insurers made standards for senior management and ensure that by the Authority senior management is managing the affairs of the pursuant to insurer in accordance with the strategies and policies Serious section 34(1)(a) set by the Governing Body. of the Monetary Authority Act (2020 Revision) Page 86 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on 5.3.3 Failure by the insurer’s Governing Body to provide Corporate oversight in respect of the design and implementation Governance for of sound risk management and internal control systems Insurers made and functions. by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.4 Failure of the Governing Body to have, on an on-going Corporate basis, the information outlined in (a) to (h). Governance for Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.5 Failure of the Governing Body to establish clear and Corporate objective independence criteria which should be met by Governance for a sufficient number of members of the Governing Body Insurers made to promote objectivity in decision making by the by the Authority Governing Body with respect to all insurers insuring pursuant to third party risks, with the exception of those holding Serious section 34(1)(a) Class B (i) and Class C licenses. of the Monetary Authority Act (2020 Revision) Rule on 5.6.1 Failure of the Governing Body to undertake the duties Corporate outlined in (a) to (c) on an on-going basis. Governance for Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 87 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on 5.6.2 Failure of the Governing Body to regularly undertake Corporate the duties outlined in (a) to (i). Governance for Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.7 Failure of members of the Governing Body to undertake Corporate their duties in accordance with rule 5.7.1 to 5.7.10. Governance for Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.8.1 Failure of the Governing Body to ensure that an actuary Corporate appointed under the Insurance Act, 2010 [Law 32 of Governance for 2010]is granted direct access to the Governing Body Insurers made and to all relevant information. by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.8.2 Failure of the Governing Body to have in place an Corporate appropriate compliance committee or person who Governance for should report directly and regularly to the Governing Insurers made Body on all compliance matters. by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Page 88 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on 5.9 Failure of the Governing Body to have mechanisms in Corporate place for documenting the delegation and monitoring Governance for the exercise of delegated functions. Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.10.1 Failure of a director or a member of senior management Corporate to declare conflicts of interest. Governance for Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.10.2 1. Failure of the Governing Body to establish a Corporate documented ‘conflicts of interest’ policy for its Governance for members. Insurers made by the Authority 2. Failure of the Governing Body to ensure that where pursuant to conflicts of interest arise, they are noted in the Serious section 34(1)(a) minutes of the meeting to which the subject matter of the Monetary of the conflict relates. Authority Act (2020 Revision) Rule on 5.10.3 1. Failure of directors and senior management to Corporate confirm to the Governing Body in writing, via an Governance for annual declaration, that any conflicts of interest Insurers made have been declared throughout the year. by the Authority pursuant to 2. Failure of directors and senior management to Serious section 34(1)(a) communicate changes to the declaration of the Monetary throughout the year. Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 89 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on 5.11.1 Failure of an insurer’s Governing Body to adopt and Corporate oversee the effective implementation of a written Governance for remuneration policy in accordance with rule 5.11.1. Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.11.2 Failure of the Governing Body to ensure that the Corporate remuneration policy at minimum, covers those Governance for individuals who are members of the Governing Body, Insurers made and where an insurer has its own employees, senior by the Authority management, employees in charge of Control pursuant to Functions and other employees whose actions may Serious section 34(1)(a) have a material impact on the risk exposures of the of the Monetary insurer (major risk-taking staff). Authority Act (2020 Revision) Rule on 5.12.1 Failure of the Governing Body to ensure there is a Corporate reliable financial reporting process for both public and Governance for supervisory purposes that is supported by clearly Insurers made defined roles and responsibilities of the Governing by the Authority Body, senior management and the external auditor. pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.12.2 Failure of the Governing Body or its Audit Committee to Corporate ensure there is adequate governance and oversight of Governance for the external audit process. Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Page 90 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on 5.13.1 Failure of the Governing Body to have access to Corporate accurate, relevant and timely information regarding the Governance for insurer. Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.13.2 Failure of the Governing Body to approve systems and Corporate controls to ensure the promotion of appropriate, timely Governance for and effective communications with the Authority on the Insurers made governance of the insurer. by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.13.3 Failure of the Governing Body to hold regular Board Corporate meetings, not less than annually. Governance for Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on 5.14.1 Failure of the Governing Body to ensure it is not subject Corporate to undue influence from Senior Management or other Governance for parties and that it has access to all relevant information Insurers made about the insurer. by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 91 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on 5.14.2 Failure of the Governing Body to approve appropriate Corporate policies and procedures to ensure that Senior Governance for Management — Insurers made (a) is sufficiently accountable to the Governing by the Authority Body; pursuant to (b) carries out the day-to-day operations of the section 34(1)(a) insurer effectively and in accordance with of the Monetary the insurer’s corporate culture, business Authority Act objectives, and strategies, in line with the (2020 Revision) insurer’s long term interests and viability; (c) promotes sound risk management, compliance and fair treatment of Serious policyholders; (d) provides the Governing Body adequate and timely information to enable the Governing Body to carry out its duties and functions including the monitoring and review of the performance and risk exposures of the insurer, and the performance of Senior Management; or (e) maintains adequate and orderly records of the internal organisation that can be easily accessed. Rule on 5.15 Failure of the insurer to demonstrate the adequacy and Corporate effectiveness of its corporate governance framework, Governance for as required by the Authority. Insurers made by the Authority pursuant to Serious section 34(1)(a) of the Monetary Authority Act (2020 Revision) 17 - Rule on the Segregation of Assets 17. RULE ON THE SEGREGATION OF ASSETS – LICENSED FUNDS MADE BY THE AUTHORITY PURSUANT TO SECTION 34(1)(a) OF THE MONETARY AUTHORITY ACT (2020 REVISION) Page 92 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on the Failure of the Fund to segregate and account for Segregation of separately from any assets of any Service Provider the Assets – Portfolio, excluding cash. Licensed Funds made by the Authority 5.1 Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the fund to ensure that any Service Provider Segregation of that holds or manages the Portfolio complies with Rule Assets – 5.1. Licensed Funds made by the Authority 5.2 Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the fund to ensure by contract that any Segregation of Service Provider that holds or manages the Portfolio is Assets – regulated by the Authority, or by a Recognised Licensed Funds Overseas Regulatory Authority, or by another regulator made by the approved by the Authority. Authority 5.3 Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the operators of the fund to establish, Segregation of implement and maintain (or to oversee) strategies, Assets – policies, and procedures to ensure compliance with Licensed Funds these Rules, consistent with the fund’s offering 5.6 Very serious made by the document and appropriate for the size, complexity, and Authority nature of its activities and investors. pursuant to section 34(1)(a) c Revised as at 31st December, 2021 Page 93 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule of the Monetary Authority Act (2020 Revision) 18 - Rule on the Management of Credit Risks and Problem Assets 18. RULE ON THE MANAGEMENT OF CREDIT RISK AND PROBLEM ASSETS MADE BY THE AUTHORITY PURSUANT TO SECTION 34(1)(A) OF THE MONETARY AUTHORITY ACT (2020 REVISION) Rule on the 1. Failure of Credit Risk Holders to establish, Management of implement and maintain strategies, policies, and Credit Risk and procedures for credit risk management appropriate Problem Assets for the size, complexity, and nature of its activities. made by the Authority 2. Failure of Credit Risk Holders to create an pursuant to appropriate credit risk environment that — section 34(1)(a) (a) facilitates a sound credit-granting process; of the Monetary (b) measures, monitors and controls credit risk; Authority Act 5.1.1 (c) Includes a reliable credit risk asset Serious (2020 Revision) classification system; (d) identifies and manages problem assets; (e) establishes adequate provisions in a timely manner; (f) manages the use of risk mitigants; (g) includes adequate reporting to the Board; or (h) accords with the applicable acceptable accounting framework, as necessary. Rule on the Failure of the Credit Risk Holder to obtain the approval Management of of the Board of directors for its strategies, policies, and Credit Risk and procedures including those related to credit granting, Problem Assets asset classification and provisioning. made by the Authority 5.2.1 Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Page 94 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on the Failure of the Board of directors to regularly review the Management of strategies, policies and procedures and direct changes Credit Risk and as necessary. Problem Assets made by the Authority 5.2.2 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Board of directors to ensure that the Minor Management of Credit Risk Holder has appropriate credit risk Credit Risk and assessment processes and effective internal controls Problem Assets commensurate with the size, nature and complexity of made by the its lending operations, to consistently determine Authority 5.2.3 adequate provisions for asset losses in accordance pursuant to with the Credit Risk Holder’s stated policies and section 34(1)(a) procedures, the applicable accounting framework and of the Monetary supervisory guidance. Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to document all Minor Management of strategies, policies and procedures and to make them Credit Risk and accessible to relevant parties. Problem Assets made by the Authority 5.2.4 pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to ensure that its Minor Management of strategies and policies clearly articulating the Credit Credit Risk and Risk Holder’s risk tolerance, including how much and 5.2.5 Problem Assets what types of risk it is prepared to undertake. made by the Authority c Revised as at 31st December, 2021 Page 95 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of Senior Management to implement the Minor Management of strategy and framework set by the Board. Credit Risk and Problem Assets made by the Authority 5.2.6 pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of Credit Risk Holders to operate with sound, Minor Management of well-defined credit-granting criteria. Credit Risk and Problem Assets made by the Authority 5.3.1 pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of Credit Risk Holders to establish overall credit Serious Management of limits at the level of individual borrowers and Credit Risk and counterparties, and groups or connected counterparties Problem Assets that aggregate in comparable and meaningful manner made by the different types of exposures, both in the banking and Authority 5.3.2 trading book and on and off the balance sheet. pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Page 96 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on the Failure of Credit Risk Holders to make credit decisions Minor Management of free of conflicts of interest and on an arm’s length basis. Credit Risk and Problem Assets made by the Authority 5.3.3 pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to ensure that the Minor Management of policy prescribes that the major credit risk exposures Credit Risk and exceeding a pre-defined amount or percentage of the Problem Assets Credit Risk Holder’s capital, and credit risk exposures made by the that are especially risky or are otherwise not in line with Authority 5.3.4 the mainstream of the Credit Risk Holder’s activities are pursuant to to be decided by the Credit Risk Holder’s Board or section 34(1)(a) Senior Management or a credit risk management of the Monetary function independent of the business lines with Authority Act reporting and access to the Board. (2020 Revision) Rule on the Failure of the Credit Risk Holder to have a clearly- Minor Management of established process in place for approving new credits Credit Risk and as well as the amendment, renewal and re-financing of Problem Assets existing credits. made by the Authority 5.3.5 pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to have policies and Management of processes to monitor the total indebtedness of entities Credit Risk and to which they extend credit and any risk factors that may Problem Assets result in default including significant unhedged foreign 5.4.1 Serious made by the exchange risk. Authority pursuant to section 34(1)(a) c Revised as at 31st December, 2021 Page 97 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to take the necessary Management of steps to measure, monitor and control credit risk Credit Risk and derived from both on and off balance sheet assets. Problem Assets made by the Authority 5.4.2 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure to undertake a periodic formal review of loans to Management of which credit risk ratings are assigned to reasonably Credit Risk and assure that those ratings are accurate and up to date. Problem Assets made by the Authority 5.4.3 Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to include credit risk Management of exposures in their stress testing programs for risk Credit Risk and management purposes. Problem Assets made by the Authority 5.4.4 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to have a system in Management of 5.5.1 place to reliably classify assets on the basis of credit Minor Credit Risk and risk. Page 98 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Problem Assets made by the Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to, at a minimum, Management of adversely classify assets when they are contractually in Credit Risk and arrears. Problem Assets made by the Authority 5.5.2 Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of Credit Risk Holder to ensure that asset Management of classification systems have as a minimum, the Credit Risk and categories under paragraphs (a) to (e). Problem Assets made by the Authority 5.5.3 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to identify an asset as a Management of problem asset when there is reason to believe that all Credit Risk and amounts due will not be collected.

Problem Assets made by the Authority 5.6.1 Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 99 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on the Failure of a Credit Risk Holder to formulate and Management of document policies and processes for identifying and Credit Risk and managing problem assets. Problem Assets made by the Authority 5.6.2 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to conduct consistent Management of regular reviews of their problem assets both on and off- Credit Risk and balance sheet and asset classification, provisioning and Problem Assets write-offs. made by the Authority 5.6.3 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to have organisational Management of resources for the early identification of deteriorating Credit Risk and assets, for ongoing oversight of problem assets, and for Problem Assets collecting on past due obligations. made by the Authority 5.6.4 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to have appropriate Management of policies and processes to ensure that provisions and Credit Risk and write-offs are timely and reflect realistic repayment and 5.7.1 Serious Problem Assets recovery expectations, taking into account market and made by the macroeconomic conditions and past loss experience. Authority Page 100 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to ensure that its Management of aggregate amount of individual and collectively Credit Risk and assessed asset loss provisions are adequate to absorb Problem Assets estimated credit losses and are consistent with the made by the objectives of the applicable accounting framework. Authority 5.7.2 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to have and retain Management of adequate documentation to support the asset Credit Risk and classification and provisioning levels. Problem Assets made by the Authority 5.7.3 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to provide the Authority Management of with full access to information concerning the Credit Risk and classification of assets and provisioning in relevant Problem Assets detail, as requested from time to time. made by the Authority 5.7.4 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to have policies and 5.7.5 Minor Management of procedures in place to appropriate validate a model to c Revised as at 31st December, 2021 Page 101 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Credit Risk and assess and measure expected credit losses, if it uses Problem Assets such a model. made by the Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to have appropriate Management of mechanisms in place for regularly assessing the value Credit Risk and of risk mitigants, including guarantees, credit Problem Assets derivatives and collateral. made by the Authority 5.8.1 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to periodically assess Management of whether the types and volume of risk mitigants used Credit Risk and pose a concentration risk and whether it is within the Problem Assets tolerance levels defined by the Board of directors. made by the Authority 5.8.2 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to provide to their Management of respective Board timely and appropriate information on Credit Risk and the condition of their asset portfolio. Problem Assets made by the 5.9.1 Minor Authority pursuant to section 34(1)(a) of the Monetary Authority Act Page 102 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2020 Revision) Rule on the Failure of the Credit Risk Holder to provide the Management of minimum information as outlined. Credit Risk and Problem Assets made by the Authority 5.9.2 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of the Credit Risk Holder to seek the prior written Management of approval of the Authority for the acquisition of those Credit Risk and assets outlined at paragraphs (a) and (b). Problem Assets made by the Authority 5.10.1 Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure by a Credit Risk Holder to consider the Management of adequacy of provisioning and the appropriateness of Credit Risk and the classification status if assets are refinanced or Problem Assets rescheduled. made by the Authority 5.11.1 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the A Credit Risk Holder classifying a problem asset as Management of performing when paragraphs (a) to (c) are not met. Credit Risk and 5.12.1 Serious Problem Assets made by the c Revised as at 31st December, 2021 Page 103 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to follow reclassification Management of directives issued by the Authority under any applicable Credit Risk and provisions in the relevant regulatory laws. Problem Assets made by the Authority 5.12.2 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to support with evidence Management of upgraded reclassifications with demonstrated Credit Risk and improvements in credit risk. Problem Assets made by the Authority 5.12.3 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Credit Risk Holder to fully write off assets Management of classified as Loss within 90 calendar days. Credit Risk and Problem Assets made by the Authority 5.13.1 Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Page 104 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 19 - Rule on Interest Rate Risk Management for Banks 19. RULE ON INTEREST RATE RISK MANAGEMENT FOR BANKS MADE BY THE AUTHORITY PURSUANT TO SECTION 34 OF THE MONETARY AUTHORITY ACT (2020 REVISION) Rule on Interest Failure of the bank to establish, implement and Rate Risk maintain strategies, policies, and procedures for Management for interest rate risk management appropriate for the size, Banks made by complexity, and nature of its activities. the Authority pursuant to 4.1 Serious section 34 of the Monetary Authority Act (2020 Revision) Rule on Interest Failure of the bank to obtain Board of directors’ Rate Risk approval for strategies, policies, and procedures. Management for Banks made by the Authority pursuant to 4.2 Minor section 34 of the Monetary Authority Act (2020 Revision) Rule on Interest Failure of the bank to take necessary steps to measure, Rate Risk monitor and control interest rate risk. Management for Banks made by the Authority pursuant to 4.3 Minor section 34 of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 105 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 20 - Rule on the Contents of Offering Documents 20. RULE ON THE CONTENTS OF OFFERING DOCUMENTS – LICENSED FUNDS MADE BY THE AUTHORITY PURSUANT TO SECTION 34 OF THE MONETARY AUTHORITY ACT (2020 REVISION) Rule on the Failure of the fund to include the information outlined at Contents of subparagraphs (i) to (xxii) in its Offering Document. Offering Documents – Licensed Funds made by the Authority pursuant to section 34 of 5.1 Serious the Monetary Authority Act (2020 Revision) 21 - Rule on Large Exposures and Credit Risk Concentration for Banks 21. RULES ON LARGE EXPOSURES AND CREDIT RISK CONCENTRATION FOR BANKS MADE BY THE AUTHORITY PURSUANT TO SECTION 34(1)(A) OF THE MONETARY AUTHORITY ACT (2020 REVISION) Rules on Large 5.2 Failure of a bank to adopt internal policies and internal Exposures and limits that will ensure compliance with the exposure Credit Risk limits contained in Rules 5.8 to 5.17. Concentration Minor for Banks made by the Authority pursuant to Page 106 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large 5.3 Failure of a bank to have adequate information systems Exposures and to identify and measure its large exposures and identify Credit Risk breaches of any of these Rules. Concentration for Banks made by the Authority Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large 5.4 Failure of a bank to report any breach of these Rules to Exposures and the bank’s Board of directors or audit committee. Credit Risk Concentration for Banks made by the Authority Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large 5.5 Failure of a bank to assign a designated independent Exposures and unit or officer, to monitor large exposures to ensure its Credit Risk compliance with the limits established by these Rules Concentration and the bank’s internal limits. for Banks made by the Authority Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large 5.6 Failure of a bank to ensure that regular independent Minor Exposures and reviews are conducted to verify that the bank’s c Revised as at 31st December, 2021 Page 107 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Credit Risk established policies, limits and procedures are strictly Concentration adhered to in relation to large exposures. for Banks made by the Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large 5.7 Failure of a bank to report all large exposures quarterly Exposures and on the Authority’s Form BS and schedules. Credit Risk Concentration for Banks made by the Authority Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large 5.8 Failure of a bank to obtain prior written approval of the Exposures and Authority before incurring exposures to an individual Credit Risk counterparty or group of connected counterparties that Concentration exceeds 25% of its capital base. for Banks made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large 5.9 Failure of a bank to obtain prior written approval of the Exposures and Authority before exceeding 800% of the bank’s total Credit Risk capital base of all large exposures that are not exempt. Concentration for Banks made Serious by the Authority pursuant to section 34(1)(a) of the Monetary Authority Act Page 108 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2020 Revision) Rules on Large 5.10 Failure of a bank to ensure that the total of all exposures Exposures and to related counterparties does not exceed 25% of a Credit Risk bank’s capital base. Concentration for Banks made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large 5.12 A bank excluding exposures to related counterparties Exposures and as defined in Rules 4.8 (c) and (d) from the aggregate Credit Risk limits defined in Rule 5.10 without meeting the criteria Concentration under paragraphs (a) and (b). for Banks made by the Authority Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large 5.13 Failure of a bank to ensure that the total of unsecured Exposures and exposures to any one group of related counterparties Credit Risk defined in Rules 4.8(c) and (d) does not exceed 1% of Concentration the bank’s capital base. for Banks made by the Authority Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large Failure of a bank to ensure that the total of unsecured Exposures and exposures to all related counterparties defined in Rules Credit Risk 5.14 4.8 (c) and (d) does not exceed 5% of the bank’s capital Minor Concentration base. for Banks made c Revised as at 31st December, 2021 Page 109 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule by the Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large Failure of a bank which is subject to consolidated Exposures and supervision to obtain approval by the Authority for Credit Risk exposures that are guaranteed by another banking Concentration institution to exceed the 25% single exposure limit for Banks made contained in Rule 5.8, provided that 5.15.1 to 5.15.6 is by the Authority 5.15 met. Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large Failure of a bank to notify the Authority immediately of Exposures and any breach of any limits imposed by these Rules and Credit Risk as otherwise agreed with the Authority. Concentration for Banks made by the Authority 5.19 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rules on Large Failure of a bank to take immediate action to bring the Exposures and exposure within permitted limits as soon as possible. Credit Risk Concentration for Banks made by the Authority 5.20 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Page 110 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rules on Large Failure of a bank to report its twenty largest exposures Exposures and on the Authority’s Form BS and schedules. Credit Risk Concentration for Banks made by the Authority 6.1 Minor pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) 22 - Rule on the Calculation of Asset Values 22. RULE ON THE CALCULATION OF ASSET VALUES – LICENSED FUNDS MADE BY THE AUTHORITY PURSUANT TO SECTION 34 OF THE MONETARY AUTHORITY ACT (2020 REVISION) Rule on the Failure of a fund to establish, implement and maintain Calculation of a NAV Calculation Policy that ensures a Fund’s NAV is Asset Values – fair, reliable, of high quality and verifiable. Licensed Funds made by the Authority 5.1 Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Fund to ensure that the NAV Calculation Serious Calculation of Policy complies with rules 5.2.1 to 5.2.8. Asset Values – Licensed Funds made by the Authority 5.2 pursuant to section 34 of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 111 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on the Failure of a Fund to ensure that the NAV Calculation Serious Calculation of Policy requires the Fund to value the securities within Asset Values – its portfolio(s) using Market Prices. Licensed Funds made by the Authority 5.3 pursuant to section 34 of the Monetary Authority Act (2020 Revision) Rule on the 1. Failure of a Fund to justify and identify any Serious Calculation of weaknesses in Pricing Models with any Pricing Asset Values – Models. Licensed Funds made by the 2. Failure of a Fund to ensure that any Pricing Model Authority 5.4 is capable of practical implementation by the pursuant to relevant Service Providers. section 34 of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Fund to require the Fund’s relevant Service Serious Calculation of Providers to apply the NAV Calculation Policy and any Asset Values – Pricing Models consistently, unless there is satisfactory Licensed Funds reason not to do so, in which case such derivations made by the must be disclosed in the Fund’s offering document and Authority 5.5 agreed by the Operators in advance of the pursuant to determination or production of the NAV. section 34 of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Fund to ensure that the NAV of a fund is Calculation of calculated by a Service Provider that is independent of Asset Values – the Fund’s investment manager/advisor and operators, 5.6 Serious Licensed Funds competent, and able to adhere to the NAV Calculation made by the Policy and any relevant Pricing Models. Authority Page 112 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule pursuant to section 34 of the Monetary Authority Act (2020 Revision) Rule on the 1. Failure of the manager or advisor to provide any Serious Calculation of supporting information that is reasonably Asset Values – available. Licensed Funds made by the 2. Failure of the fund’s administrator to verify the Authority 5.7 prices and NAC to the extent possible wherever pursuant to prices are provided or sourced by the investment section 34 of manager/advisor or operators. the Monetary Authority Act (2020 Revision) Rule on the Failure of a Fund to ensure that the Fund’s offering Serious Calculation of document explicitly describes the potential limitations Asset Values – and conflicts of the NAV Calculation Policy, and any Licensed Funds material involvement by the fund’s investment manager made by the or advisor in the pricing of the fund’s portfolio, or Authority otherwise in the calculation, determination or 5.9 pursuant to production of the NAV. section 34 of the Monetary Authority Act (2020 Revision) Rule on the Failure of a Fund to ensure that the NAV reports are Serious Calculation of addressed directly to the fund’s investors. Asset Values – Licensed Funds made by the Authority 5.10 pursuant to section 34 of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 113 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on the Failure of the fund’s operators to approve and review, Serious Calculation of at least annually, the NAV Calculation Policy and any Asset Values – Pricing Models. Licensed Funds made by the Authority 5.11 pursuant to section 34 of the Monetary Authority Act (2020 Revision) 23 - Liquidity Risk Management Rules and Guidelines 23. LIQUIDITY RISK MANAGEMENT RULES AND GUIDELINES MADE BY THE AUTHORITY PURSUANT TO SECTION 34 OF THE MONETARY AUTHORITY ACT (2020 REVISION) Liquidity Risk Failure of the bank to have a strategy for the day-to-day Management management of liquidity, setting out the bank’s general Rules and approach to liquidity, which is approved by the bank’s Guidelines Board of directors. made by the Authority Rule 4.1 Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of the bank to have a management structure in Management place to effectively execute the liquidity strategy and Rules and failure of senior management to ensure that liquidity is Guidelines effectively managed and that appropriate policies and made by the procedures are established to control and mitigate Authority 4.2 liquidity risk. Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Page 114 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Liquidity Risk Failure of the bank’s Board to ensure that senior Management management takes the steps necessary to monitor, Rules and control and report on liquidity risk. Guidelines made by the Authority 4.3 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of the bank to ensure that the strategy for Management managing liquidity risk is communicated throughout the Rules and organisation. Guidelines made by the Authority 4.5 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of the bank’s senior management and the Management appropriate personnel to have a thorough Rules and understanding of how other risks, including credit, Guidelines market and operational risk, impact on the bank’s made by the overall liquidity strategy and position. Authority 4.6 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank’s management to make decisions Management related to the structure for managing liquidity. Rules and Guidelines 4.7 Minor made by the Authority pursuant to section 34 of c Revised as at 31st December, 2021 Page 115 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank to have adequate information systems Management for measuring, monitoring, controlling and reporting Rules and liquidity risk. Guidelines made by the Authority 4.8 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank to establish a schedule of frequent Management routine liquidity reviews and less frequent, but more in- Rules and depth reviews. Guidelines made by the Authority 4.9 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank’s management to set limits to ensure Management adequate liquidity and to control liquidity risk exposures Rules and and vulnerabilities. Guidelines made by the Authority 4.10 Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank to design their management Management 4.11 information system to provide the Board of directors, Minor Rules and senior management and other appropriate personnel Page 116 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Guidelines with timely information on the liquidity position of the made by the bank. Authority pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank to periodically review its efforts to Management establish and maintain relationships with liability Rules and holders, to maintain the diversification of liabilities, and Guidelines aim to ensure its capacity to sell assets. made by the Authority 6.1 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank to have contingency plans in place Management that address the strategy for handling liquidity crises Rules and and include procedures for making up cash flow Guidelines shortfalls in emergency situations. made by the Authority 7.1 Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank to have a measurement, monitoring Management and control system for its liquidity positions in the major Rules and currencies in which it is active. Guidelines made by the Authority 8.1 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 117 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Liquidity Risk Failure of senior management to ensure that there are Management adequate internal controls in place to protect the Rules and integrity of the established liquidity risk management Guidelines process. made by the Authority 9.1 Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of the bank to ensure that the internal audit Management function periodically reviews the liquidity management Rules and process in order to identify any weaknesses or Guidelines problems, which should be addressed by management made by the in a time and effective manner. Authority 9.6 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a Category “A” Retail bank to meet the Management minimum requirements of the LCR as stipulated in this Rules and Part of the Rules and Guidelines. Guidelines made by the Authority 10.3 Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a Category “A” Retail bank to ensure that the Management value of the LCR is less than 100%. Rules and 11.2 Serious Guidelines made by the Authority Page 118 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank to have adequate policies to identify Management and manage its stock of HQLA. Rules and Guidelines made by the Authority 15.1 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a Category “A” Retail bank to meet the Management minimum requirements of NSFR as stipulated in Part III Rules and of the Rules and Guidelines. Guidelines made by the Authority 20.3 Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a bank to ensure that the value of the NSFR Management is less than 100%. Rules and Guidelines made by the Authority 21.2 Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 119 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Liquidity Risk Failure of a Category “A” Retail bank to calculate and Management report the additional monitoring tools included in Part IV Rules and of the Rules and Guidelines. Guidelines made by the Authority 27.4 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a Category “A” Non-Retail bank or Category Management “B” bank to meet the minimum requirements of the MLR Rules and as stipulated in Part V of the Rules and Guidelines. Guidelines made by the Authority 32.3 Minor pursuant to section 34 of the Monetary Authority Act (2020 Revision) Liquidity Risk Failure of a Category “A” Non-Retail bank or Category Management “B” bank to hold at all times, Liquid Assets, as defined Rules and in section 34, denominated in any currency, amounting Guidelines to no less than 15% of the value of its Qualifying made by the Liabilities, as defined in section 35, denominated in all Authority 33.1 currencies Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) 24 - Rule on Market Conduct – Insurers, Agents and Brokers 24. RULE ON MARKET CONDUCT – INSURERS, AGENTS AND BROKERS MADE BY THE AUTHORITY PURSUANT TO SECTION 34(1)(a) OF THE MONETARY AUTHORITY ACT (2020 REVISION) Page 120 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on Market 5.1.1 Failure of insurers and intermediaries to have internal Conduct – controls or adequate protection in place to safeguard Insurers, Agents customer’s assets, including money, when responsible and Brokers for them. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.1.2 Failure of intermediaries to act within the limits of Conduct – professional training and any limits of authorisation. Insurers, Agents and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.1.3 Failure of a person who deals or may deal with clients Conduct – directly to be trained and achieve a suitable level of Insurers, Agents competence in — and Brokers (a) the licensee’s policies and procedures made by the addressing this guidance; and Authority (b) the technical and legal aspects and effects Serious pursuant to of the products sold. section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.2.1 Failure of insurers to conduct due diligence that Conduct – provides satisfactory evidence that the intermediaries Insurers, Agents that distribute their products maintain appropriate levels and Brokers of professional knowledge and experience, integrity Serious made by the and competence to advise and inform customers on the Authority features and characteristics of the products they offer. pursuant to section 34(1)(a) c Revised as at 31st December, 2021 Page 121 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule of the Monetary Authority Act (2020 Revision) Rule on Market 5.2.2 Failure of insurers to have a framework, including Conduct – practices, policies and procedures to manage Insurers, Agents compliance or conduct issues with any intermediaries and Brokers employed. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.2.3 Failure of insurers to ensure that their contractual Conduct – provisions with an intermediary allow the fulfilment of Insurers, Agents their legal and regulatory obligations. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.2.4 Failure of the insurer to ensure that the written Conduct – agreement between an insurer and an intermediary Insurers, Agents includes the information at (a) to (f). and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.2.5 Failure of the insurer to ensure that the information they Conduct – provide to an intermediary about their products is clear, Serious Insurers, Agents accurate and not misleading. Page 122 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule and Brokers made by the Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.2.6 Failure of the insurer to act appropriately to deal with Conduct – potential and confirmed instances of mis-selling, Insurers, Agents inappropriate policy replacement or sales to customers and Brokers for which a product is clearly unsuitable. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.2.7 Failure of the insurer to act upon and inform the Conduct – appropriate regulatory authorities where there is on- Insurers, Agents going concern that an intermediary may be acting and Brokers contrary to relevant regulation in any jurisdiction. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.3.1 Failure of an insurer and intermediary to act with due Conduct – skill, care and diligence when dealing with customers. Insurers, Agents and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 123 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on Market 5.3.2 Failure of an insurer and intermediary to ensure that Conduct – their sales representatives are trained and equipped to Insurers, Agents adequately advise customers on the features and and Brokers characteristics of the products they sell or introduce or made by the provide information about. Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.3.3 Failure of the insurer or intermediary to retain an Conduct – acknowledgement by the customer to this effect in Insurers, Agents cases where advice would normally be expected, but and Brokers the customer chooses not to receive advice. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.3.4 Failure of an insurer or intermediary to establish and Conduct – implement policies and procedures on the fair treatment Insurers, Agents of customers that are an integral part of their business and Brokers practices. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.3.5 Failure of an insurer to have policies and procedures in Conduct – place for dealing with intermediaries so as to ensure fair Insurers, Agents treatment of customers. Serious and Brokers made by the Authority Page 124 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.3.6 Failure of an insurer or intermediary to seek to exclude Conduct – or restrict any duty or liability to a customer that they Insurers, Agents have under Cayman legislation or this Rule, or other and Brokers voluntary code of conduct to which the insurer or made by the intermediary has subscribed and declared. Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.4.1 Failure of an insurer or intermediary to have policies Conduct – and procedures for the protection of private information Insurers, Agents on customers. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.4.2 Failure of an insurer or intermediary to inform Conduct – customers about which personal information might be Insurers, Agents disclosed and to whom. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 125 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on Market 5.4.3 Failure of an insurer or intermediary to adhere to Conduct – relevant data protection and provisions in any Insurers, Agents jurisdiction in which they operate. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.1 Failure of an insurer or intermediary to provide Conduct – information before and at the point of sale that will Insurers, Agents enable customers to make an informed decision before and Brokers entering into a contract. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.2 Failure of an insurer or intermediary to provide pre- Conduct – contractual and contractual information in a timely Insurers, Agents manner. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.3 Failure of an insurer or intermediary to provide Conduct – customers with sufficient information to enable them to Insurers, Agents understand the characteristics of the product, whether and Brokers and for what reasons it meets their requirements. Serious made by the Authority pursuant to section 34(1)(a) Page 126 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.4 Failure of an insurer or intermediary to provide Conduct – information to customers in plain language that is fair, Insurers, Agents clear and not misleading. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.5 Failure of an insurer which uses an intermediary to Conduct – ensure that the intermediary provides timely, clear and Insurers, Agents adequate pre-contractual and contractual information to and Brokers customers. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.6 Failure of an insurer or intermediary to inform Conduct – customers of (a) to (d). Insurers, Agents and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.7 Failure of an insurer to disclose any commission Conduct – payable to an intermediary and intermediaries must Serious Insurers, Agents disclose any commission receivable when creating a c Revised as at 31st December, 2021 Page 127 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule and Brokers quotation for the sale of investment-linked life insurance made by the products. Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.8 Failure of an insurer or intermediary to ensure that they Conduct – inform the customer of any potential conflicts of interest Insurers, Agents and ensure that any conflicts are properly managed. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.9 Failure of an insurer to give the customer at the time of Conduct – conducting the contract the information at (a) to (h). Insurers, Agents and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.10 Failure of an insurer or intermediary to inform Conduct – customers about their duty of disclosure and the Insurers, Agents implications of a failure to disclose material information. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Page 128 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on Market 5.5.11 Failure of an insurer or intermediary operating in a host Conduct – country to inform the customer of (a) and (b). Insurers, Agents and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.12 Failure of an insurer or intermediary to demonstrate to Conduct – the Authority that customers have received information Insurers, Agents necessary to understand the product and their and Brokers obligations as a customer, before and at the point of made by the sale. Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.5.13 Failure of an insurer or intermediary to inform Conduct – customers, on an ongoing basis, of any changes to the Insurers, Agents features, costs, or returns associated with the product and Brokers offered. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.6.1 Failure of an insurer or intermediary to ensure that, Conduct – when advice is provided, all advice is communicated in Insurers, Agents a clear and accurate manner that the customer can Serious and Brokers easily understand. made by the Authority c Revised as at 31st December, 2021 Page 129 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.6.2 Failure of an insurer or intermediary to ensure that any Conduct – financial or product advice given to a customer is Insurers, Agents appropriate; taking into account the customer’s and Brokers disclosed and specific needs, risk tolerance levels and made by the ability to absorb loss. Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.6.3 Failure of an insurer or intermediary to inform Conduct – customers of the true cost of any advice given and its Insurers, Agents effects on any financial pay-outs or returns. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.7.1 Failure of an insurer to identify (a) to (c) when Conduct – developing a new product or revising an existing Insurers, Agents product. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Page 130 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on Market 5.7.2 Failure of an insurer to review their products to Conduct – determine whether they are continuing to meet the Insurers, Agents general needs of the target market for which they were and Brokers designed on a periodic basis. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.7.3 Failure of an insurer to ensure product features respect Conduct – and adhere to applicable requirements, including laws, Insurers, Agents rules, statement of guidance and regulatory procedures and Brokers in the jurisdiction in which a product is sold. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.7.4 Failure of an insurer to ensure that the name of the Conduct – product is not misleading in terms of the nature of the Insurers, Agents benefit that the product can deliver. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.7.5 Failure of an insurer to have clearly documented Conduct – processes for product approval and review that are Insurers, Agents incorporated in their overall framework for governance and Brokers and oversight. Serious made by the Authority pursuant to section 34(1)(a) c Revised as at 31st December, 2021 Page 131 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule of the Monetary Authority Act (2020 Revision) Rule on Market 5.8.1 Failure of an insurer to notify the Authority, in advance, Conduct – of the launch of any new product that may have a Insurers, Agents material impact on its risk profile or the launch into a and Brokers new territory. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.8.2 Failure of an insurer or intermediary to assess the Conduct – customer’s individual requirements to determine which Insurers, Agents insurance products are appropriate. Insurers must also and Brokers document and keep record of the results of the made by the assessment. Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.8.3 Failure of an insurer or intermediary which is Conduct – conducting an assessment of a customer’s Insurers, Agents requirements to evaluate — and Brokers (a) the customer’s desired outcomes, made by the (b) the customer’s risk appetite, Authority (c) the customer’s ability to absorb loss, and Serious pursuant to (d) how the factors under paragraphs (a) to (c) section 34(1)(a) may change over time.

of the Monetary Authority Act (2020 Revision) Rule on Market 5.8.4 Failure of an insurer or intermediary to ensure that they Conduct – comply with all applicable sales and remuneration rules Serious Insurers, Agents and legislation in force in the jurisdiction where and Brokers products are sold. Page 132 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule made by the Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.9.1 Failure of an insurer or intermediary to service policies Conduct – appropriately through to the point at which all Insurers, Agents obligations under the policy have been satisfied. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.9.2 Failure of an insurer or intermediary to have sufficient Conduct – safeguards in place to ensure that obligations under a Insurers, Agents policy are satisfied in an appropriate manner. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.9.3 Failure of an insurer or intermediary to disclose to the Conduct – customer information on any contractual changes Insurers, Agents during the life of the contract. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) c Revised as at 31st December, 2021 Page 133 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on Market 5.9.4 Failure of an insurer or intermediary to disclose to the Conduct – policyholder further relevant information depending on Insurers, Agents the type of insurance product. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.10.1 Failure of an insurer or intermediary to have policies Conduct – and procedures in place to review and approve financial Insurers, Agents promotions prior to their use. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.10.2 Failure of the policies and procedures to provide for an Conduct – independent review, within the organisation of Insurers, Agents promotional material, intended for customers, other and Brokers than by the individual or organisation that prepared or made by the designed it. Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.10.3 Failure of an insurer or intermediary to advertise, Conduct – market and promote their products in a manner that is Insurers, Agents accurate and not misleading to the customer. and Brokers Serious made by the Authority pursuant to section 34(1)(a) Page 134 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule of the Monetary Authority Act (2020 Revision) Rule on Market 5.10.4 Failure of an insurer or intermediary to withdraw any Conduct – advertisement, marketing or promotional material if it Insurers, Agents they become aware that the information contained and Brokers within is not accurate, clear or is misleading. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.10.5 Failure of an insurer or intermediary to inform the Conduct – insurer or intermediary responsible for that material and Insurers, Agents notify any person known to be relying on the information and Brokers as soon as possible. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.11.1 Failure of an insurer or intermediary to establish written Conduct – policies and procedures to deal in a fair manner with Insurers, Agents complaints which they receive. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.11.2 Failure of an insurer or intermediary to respond to Conduct – complaints without unnecessary delay. Serious Insurers, Agents and Brokers c Revised as at 31st December, 2021 Page 135 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule made by the Authority pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.11.3 Failure of an insurer or intermediary to maintain a log of Conduct – all complaints. Insurers, Agents and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.12.1 Failure of an insurer or intermediary to have written Conduct – procedures in place for the effective handling of claims Insurers, Agents in a timely and fair manner. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.12.2 Failure of an insurer or intermediary to maintain written Conduct – documentation on their claims handling procedures, Insurers, Agents which include all steps from the claim being raised to its and Brokers settlement. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Page 136 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Rule on Market 5.12.3 Failure of an insurer or intermediary to inform Conduct – customers about procedures, formalities and common Insurers, Agents timeframes for claims settlement. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.12.4 Failure of an insurer or intermediary to provide Conduct – information to claimants about the status of their claim Insurers, Agents in a timely and fair manner. and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.12.5 Failure of an insurer or intermediary to have appropriate Conduct – internal controls in place for reviewing declined claims. Insurers, Agents and Brokers made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) Rule on Market 5.12.6 Failure of an insurer or intermediary to provide reasons Conduct – in writing for denying a claim. Insurers, Agents and Brokers Serious made by the Authority pursuant to section 34(1)(a) c Revised as at 31st December, 2021 Page 137 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule of the Monetary Authority Act (2020 Revision) Rule on Market 5.12.7 Failure of an insurer or intermediary to keep the record Conduct – for all claims after settlement or rejection in accordance Insurers, Agents with the Authority’s Statement of Guidance on and Brokers Retention of Records. made by the Authority Serious pursuant to section 34(1)(a) of the Monetary Authority Act (2020 Revision) 25 - Rule on Operational Risk Management for Banks 25. RULE ON OPERATIONAL RISK MANAGEMENT FOR BANKS MADE BY THE AUTHORITY PURSUANT TO SECTION 34 OF THE MONETARY AUTHORITY ACT (2020 REVISION) Rule on Failure of the bank to establish, implement and Operational maintain strategies, policies, and processes to identify, Risk assess, monitor, and mitigate operational risk that are Management for appropriate for the size, complexity, and nature of its Banks made by activities. the Authority 4.1 Serious pursuant to section 34 of the Monetary Authority Act (2020 Revision) Rule on Failure of the bank’s Board to undertake the duties Operational listed at (a) to (c). Risk Management for 4.2 Minor Banks made by the Authority pursuant to Page 138 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule section 34 of the Monetary Authority Act (2020 Revision) 26 - Leverage Ratio Rules and Guidelines 26. LEVERAGE RATIO RULES AND GUIDELINES MADE BY THE AUTHORITY PURSUANT TO SECTION 34 OF MONETARY AUTHORITY ACT (2020 REVISION) Leverage Ratio Failure of a bank to maintain a minimum leverage ratio Rules and of 3% at all times. Guidelines made by the Authority pursuant to Rule 3.2 Serious section 34 of Monetary Authority Act (2020 Revision) Leverage Ratio Failure of a bank to comply with the minimum Rules and requirements with respect to the computation of the Guidelines leverage ratio, as specified in these Rules and made by the Guidelines. Authority pursuant to 3.3 Serious section 34 of Monetary Authority Act (2020 Revision) Leverage Ratio Failure by a bank to ensure that liability items are not Rules and deducted from the leverage ratio exposure measure. Guidelines made by the Authority 5.3 Minor pursuant to section 34 of Monetary Authority Act c Revised as at 31st December, 2021 Page 139 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2020 Revision) Leverage Ratio Failure of a bank to include all balance sheet assets in Rules and their leverage ratio exposure measure. Guidelines made by the Authority pursuant to 5.4 Serious section 34 of Monetary Authority Act (2020 Revision) Leverage Ratio Failure of a bank to calculate its exposures associated Rules and with all derivative transactions, including where a bank Guidelines sells protection using a credit derivative, as the RC for made by the the current exposure plus an add-on for PFE, as Authority described in paragraph 5.10. pursuant to 5.9 Minor section 34 of Monetary Authority Act (2020 Revision) 27 - Rules on Investments, Securities and Derivatives Risk Management for Banks 27. RULE ON INVESTMENTS, SECURITIES AND DERIVATIVES RISK MANAGEMENT FOR BANKS MADE BY THE AUTHORITY PURSUANT TO SECTION 34 OF MONETARY AUTHORITY ACT (2020 REVISION) Rule on 4.1 Failure of the bank to establish, implement and Serious Investments, maintain strategies, policies, and procedures for Securities and investments, securities, and derivatives risk Derivatives Risk management appropriate for the size, complexity, and Management for nature of its activities that create and appropriate Banks made by investment management process. the Authority pursuant to section 34 of Monetary Page 140 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Authority Act (2020 Revision) Rule on 4.2 Failure of the bank to obtain Board of directors’ Minor Investments, approval for strategies, policies, and procedures. Securities and Derivatives Risk Management for Banks made by the Authority pursuant to section 34 of Monetary Authority Act (2020 Revision) Rule on 4.3 Failure of the bank to take necessary steps to measure, Minor Investments, monitor and control the risks associated with Securities and investments, securities and derivatives business. Derivatives Risk Management for Banks made by the Authority pursuant to section 34 of Monetary Authority Act (2020 Revision) 28 - Money Services Act 28. MONEY SERVICES ACT (2020 REVISION) Money Services 4(1) Failure of a person to carry on money services business Very serious Act without first obtaining a licence under section 5. (2020 Revision) Money Services 5(9) 1. Failure of the holder of a licence to pay — Minor Act (a) the prescribed annual fee for a licence to (2020 Revision) carry on a money services business; and c Revised as at 31st December, 2021 Page 141 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (b) the prescribed annual fee for each subsidiary, branch, agency or representative office of that business, on or before every 15th day of January after the first grant of the licence. 2. Failure of a licensee who fails to pay the surcharge not exceeding one-twelfth of that fee for every month or part of a month that the fee is not paid where the licensee fails to pay the prescribed annual fees on or before every 15th day of January after the first grant of the licence. Money Services 5A Failure of a licensee to — Very serious Act (a) maintain at least one account as approved (2020 Revision) by the Authority; or (b) enter into an arrangement as agreed by the Authority, through which its money services business transactions are to be conducted. Money Services 6(2) Failure of a licensee to maintain its net worth at an Serious Act amount not less than that prescribed by subsection (1). (2020 Revision) Money Services 6(3) Failure of a licensee to increase its net worth by Serious Act increasing its paid-up capital to such greater sum as the (2020 Revision) Authority may determine for the nature of the licensee’s business, current or proposed. Money Services 6A(1) 1. A licensee that is a company issuing shares totalling Serious Act more than ten per cent of the authorised share (2020 Revision) capital of the company without the prior written approval of the Authority. 2. A licensee that is a company transferring or disposing of issued shares totalling more than ten per cent of the issued share capital or total voting rights of the company without the prior written approval of the Authority. Money Services 7(1)(a) A person other than a licensee using words Serious Act representing that the person is carrying on money (2020 Revision) services business, in English or in any other language, Page 142 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule in the description or title under which that person carries on business within the Islands. Money Services 7(1)(b) A person other than a licensee making any Serious Act representation in any billhead, letter, letterhead, (2020 Revision) circular, paper, notice or advertisement or in any other manner that that person is carrying on money services business within the Islands. Money Services 7(1)(c) A person other than a licensee soliciting or receiving Serious Act money from any person in any manner, for the purpose (2020 Revision) of carrying on money services business within the Islands. Money Services 8 1. Failure of a licensee to — Serious Act (a) cause accounting records to be kept; and (2020 Revision) (b) establish and maintain systems of control of the business and records, and systems of inspection and report, in respect of its money services business in accordance with section 8. 2. Failure of a licensee to keep accounting records which — (a) explain its transactions; (b) disclose, with reasonable accuracy and promptness, the state of the business at any time; (c) enable the directors properly to discharge their duties; and (d) enable the business properly to discharge its duties. 3. Failure of a licensee to keep accounting records which contain — (a) entries from day to day of all sums received and paid by the business and the matters in respect of which they are received or paid; and (b) a record of the assets and liabilities of the business. 4. Failure of a licensee to establish and maintain systems of control and systems of inspection and report that ensure that the money services business c Revised as at 31st December, 2021 Page 143 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule is conducted so that — (a) the information necessary to enable the directors and the business to discharge their duties and functions is sufficiently accurate, and is available with sufficient regularity or at need and with sufficient promptness, for those purposes; and (b) the information obtained by or furnished to the Authority under or for the purposes of the Insurance Act, 2010 [Law 32 of 2010] is sufficiently accurate for the purpose for which it is obtained or furnished. 5. Failure of a licensee to keep the records of the systems of control and of inspection and report so that — (c) the information necessary to enable the directors and the business to discharge their duties and functions is sufficiently accurate, and is available with sufficient regularity or at need and with sufficient promptness, for those purposes; and (d) the information obtained by or furnished to the Authority under or for the purposes of this Act is sufficiently accurate for the purpose for which it is obtained or furnished. Money Services 8A(1) Failure of a licensee and any sub-agent of the licensee Serious Act to take such steps as may be necessary to comply with (2020 Revision) the Anti-Money Laundering Regulations (2020 Revision) and such rules or statements of principle or guidance as may be prescribed by the Authority that are consistent with anti-money laundering procedures and the combatting of terrorist financing in respect of the money services business. Money Services 8A(2) 1. Failure of a licensee to monitor the compliance of the Serious Act licensee’s sub-agent, if any, with the prescribed rules (2020 Revision) or statements of principle or guidance under subsection (1). 2. Failure of a licensee to provide a report on the compliance in such form and subject to such conditions as may be prescribed where the licensee Page 144 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule is required by the Authority to do so. Money Services 9 Failure of the holder of a licence to furnish to the Serious Act Authority, at such times as may be specified by the (2020 Revision) Authority and in such form as the Authority may reasonably require — (a) written confirmation that the information set out in the application for the licence remains correct, and gives a full and fair picture of its money services business; and (b) such returns in respect of its money services business as the Authority may specify in writing. Money Services 10(1) Failure of a licensee to have the accounts of its money Serious Act services business audited annually or at such other (2020 Revision) times as the Authority may require by an auditor, who is a chartered accountant, a certified public accountant, or some other professionally qualified accountant, approved by the Authority. Money Services 10(2) Failure of a licensee to forward its audited accounts to Minor Act the Authority within three months of the end of the (2020 Revision) financial year of the licensee’s money services business, unless prior written approval for an extension has been granted by the Authority. Money Services 11 Failure of a licensee to obtain an auditor’s report on the Serious Act licensee’s anti-money laundering systems and (2020 Revision) procedures for compliance with the Anti-Money Laundering Regulations (2020 Revision) at the licensee’s expense where the licensee is required by the Authority to do so. Money Services 13 1. Failure of an auditor appointed by a licensee to give Serious Act written notice to the Authority where the auditor — (2020 Revision) (a) intends to resign during the currency of that auditor’s appointment; or (b) has given written notice to the licensee of that auditor’s unwillingness to be considered for reappointment at the expiration of the period for which that person is appointed. c Revised as at 31st December, 2021 Page 145 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 2. Failure of an auditor appointed by a licensee to state in the auditor’s written notice the reasons for that auditor’s intention to resign or that auditor’s unwillingness to be considered for reappointment. Money Services 14 1. Failure of a licensee to notify the Authority where the Serious Act licensee — (2020 Revision) (a) intends to terminate the appointment of its auditor; or (b) decides that the auditor will not be reappointed. 2. Failure of a licensee to state in the licensee’s notification, the reason for the licensee’s intention or decision. Money Services 14A(1) 1. Failure of an auditor to immediately give written Serious Act notice to the Authority where the auditor, in the (2020 Revision) course of carrying out an audit of the accounts of a licensee, obtains information or suspects that the licensee is — (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or is winding up its business voluntarily in a manner that is prejudicial to its investors or creditors; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business without compliance with — (i) this Act or any regulations made hereunder; (ii) the Monetary Authority Act (2020 Revision); (iii) the Anti-Money Laundering Regulations (2020 Revision); or (iv) a condition of the licence. Page 146 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 2. Failure of an auditor who gives the Authority written notice of a suspicion, the reason for the suspicion. Money Services 14A(3) A licensee appointing a person disqualified under Serious Act subsection (2) as an auditor. (2020 Revision) Money Services 16 A licensee incorporated under the Companies Act Serious Act (2022 Revision) opening, in or outside the Islands, a (2020 Revision) subsidiary, branch, agency or representative office without the prior written approval of the Authority. Money Services 17(1) A licensee having fewer than two directors. Serious Act (2020 Revision) Money Services 17(2) Failure of a licensee to apply to the Authority for its Serious Act written approval of the appointment of a director or (2020 Revision) other senior officer before appointing the director or other senior officer, unless it is exempt from such a requirement by the Authority. Money Services 18(3) Failure of a licensee to comply with a requirement under Serious Act subsection (3). (2020 Revision) Money Services 23(5) A person obstructing the Authority or any other person Serious Act in the exercise of any powers conferred under section (2020 Revision) 23. Money Services 24 A licensee or any director or officer of a licensee Very serious Act knowingly or wilfully supplying false or misleading (2020 Revision) information to the Authority. Money Services 30 Failure of a licensee to put into effect and to carry out Very serious Act such policy directions for the guidance of licensees in (2020 Revision) the exercise of their duties under this Act that the Authority may, from time to time, issue. Money Services 30A(1) Failure of a licensee to pay into the revenues of the Minor Act Islands, a transaction fee in the amount of two per cent (2020 Revision) of the gross amount transferred overseas up to a c Revised as at 31st December, 2021 Page 147 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule maximum of ten dollars for each transaction. Money Services 30A(2) Failure of a licensee to pay into the revenues of the Minor Act Islands the transaction fee under subsection (1) on a (2020 Revision) quarterly basis in such form as the Authority may prescribe. Money Services 30A(3) Failure of a licensee to pay into the revenues of the Minor Act Islands a surcharge not exceeding one-twelfth of that (2020 Revision) fee for every month or part of a month that the fee under subsection (1) is not paid. 29 - Mutual Funds Act 29. MUTUAL FUNDS ACT (2021 REVISION) Mutual Funds 4(1) 1. A mutual fund which does not comply with Very serious Act subsection (3) or (4) carrying on or attempting to (2021 Revision) carry on business in or from the Islands without — (a) holding a Mutual Fund Licence, and having— (i) a registered office in the Islands; or (ii) if a unit trust, a trust company licensed under the Banks and Trust Companies Act (2021 Revision) as its trustee; or (b) being registered with the Authority in the prescribed manner and having a licensed mutual fund administrator providing its principal office in the Islands. 2. A mutual fund which does not comply with subsection (3) or (4), carrying on or attempting to carry on business in or from the Islands without filing with the Authority, in respect of the mutual fund, a current offering document that complies with subsection (6). Mutual Funds 4(8) Failure of a mutual fund to file an amended offering Serious Act document or amended prescribed details with the Authority within twenty-one days of becoming aware of Page 148 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2021 Revision) any change that materially affects any information in the offering document filed with the Authority or in the prescribed details of the offering document or the prescribed details of a master fund that is without an offering document filed with the Authority. Mutual Funds 4(9) A mutual fund changing — Serious Act (a) its registered office or its principal office; (2021 Revision) (b) the trust company acting as its trustee, without informing the Authority of the change. Mutual Funds 5(5) Failure of the operator of a mutual fund to ensure that, Very serious Act when carrying on or attempting to carry on business in (2021 Revision) or from the Islands, the mutual fund complies with any conditions contained in its licence. Mutual Funds 5(7) A person supply to the Authority information that that Very serious Act person knows or should reasonably know is false or (2021 Revision) misleading in connection with an application for a Mutual Fund Licence. Mutual Funds 7 A person other than a regulated mutual fund or a mutual Very serious Act fund referred to in section 4(4) representing in any way (2021 Revision) that the person is carrying on or attempting to carry on business in or from the Islands as a mutual fund. Mutual Funds 8(1) Failure of a regulated mutual fund to have its accounts Serious Act audited annually by an auditor approved by the (2021 Revision) Authority. Mutual Funds 8(1A) Failure of a regulated mutual fund to prepare its Serious Act accounts in accordance with the International Financial (2021 Revision) Reporting Standards or the generally accepted accounting principles of the United States of America, Japan, Switzerland or a non-high risk jurisdiction. Mutual Funds 8(1B) Failure of an auditor approved by the Authority to carry Serious Act out the annual audit under subsection (1) in accordance (2021 Revision) with the International Standards on Auditing or the generally accepted auditing standards of the United States of America, Japan, Switzerland or a non-high c Revised as at 31st December, 2021 Page 149 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule risk jurisdiction. Mutual Funds 8(2) Failure of a regulated mutual fund to send its audited Serious Act accounts in respect of a financial year of the fund to the (2021 Revision) Authority, in such manner as the Authority may from time to time direct, within six months of the end of that financial year or within such extension of that period as the Authority may allow. Mutual Funds 9(1) Failure of a licensed regulated mutual fund to pay to the Minor Act Financial Secretary for the benefit of the revenue, the (2021 Revision) prescribed annual licence fee on or before the 15th January in each year. Mutual Funds 9(2) Failure of a regulated mutual fund that is complying with Minor Act section 5(3) to pay to the Financial Secretary for the (2021 Revision) benefit of the revenue the prescribed annual registration fee on or before the 15th January in each year. Mutual Funds 9(3) Failure of a regulated mutual fund which does not pay Minor Act the annual fee on or before the 15th January in each (2021 Revision) year to pay to the Authority, an additional fee equal to one twelfth of that annual fee for each month or part of a month during which the annual fee and any additional fee imposed under subsection (3) remains unpaid. Mutual Funds 10 A person who is not acting with and in accordance with Very serious Act the authorisation of the Authority, acting or carrying on (2021 Revision) business as a mutual fund administrator without being authorised to do so by a Mutual Fund Administrators Licence. Mutual Funds 12(5) A licensed mutual fund administrator which has a Very serious Act principal office in the Islands or a body corporate or (2021 Revision) individuals acting as its agent in the Islands changing that principal office or the body corporate or any individual acting as its agent without first giving the Authority notice of its intention to do so. Mutual Funds 12(7) Failure of a licensed mutual fund administrator to Very serious Page 150 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Act comply with any conditions contained in its Mutual Fund (2021 Revision) Administrators Licence when carrying on or attempting to carry on business as a mutual fund administrator. Mutual Funds 12(8) A person supplying information in connection with an Very serious Act application for a Mutual Fund Administrators Licence (2021 Revision) that the person knows or should reasonably know is false or misleading to the Authority. Mutual Funds 13(1) 1. A licensed mutual fund administrator which is a Serious Act company issuing shares without the approval of the (2020 Revision) Authority. 2. A person owning or having an interest in shares in the company transferring or otherwise disposing of or dealing in those shares or that interest without the approval of the Authority. Mutual Funds 14(1) 1. Failure of a licensed mutual fund administrator to Very serious Act immediately upon starting to provide the principal (2021 Revision) office of a regulated mutual fund, give the Authority the prescribed details in respect of the mutual fund. 2. Failure of a licensed mutual fund administrator to immediately upon starting to provide the principal office of a regulated mutual fund to pay the prescribed fee in respect of the mutual fund to the Authority. Mutual Funds 14(2) Failure of a licensed mutual fund administrator to pay Minor Act the prescribed annual fee in respect of that mutual fund (2021 Revision) to the Financial Secretary for the benefit of the revenue on or before the 15th January in each year after the date when it started to provide the principal office of a regulated mutual fund. Mutual Funds 14(3) Failure of a licensed mutual fund administrator to pay Minor Act the prescribed annual licence fee to the Financial (2021 Revision) Secretary for the benefit of the revenue on or before the 15th January in each year. Mutual Funds 14(4) Failure of a licensed mutual fund administrator to pay to Minor Act Authority an additional fee equal to one twelfth of that c Revised as at 31st December, 2021 Page 151 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (2021 Revision) annual fee for each month or part of a month during which the annual fee and any additional fee imposed by virtue of subsection (4) remains unpaid. Mutual Funds 15(2) Failure of a licensed mutual fund administrator to Serious Act comply with a direction given under subsection (1). (2021 Revision) Mutual Funds 17 Failure of a mutual fund administrator to Very serious Act immediately give the Authority written notice of the (2021 Revision) mutual fund administrator’s knowledge or belief and its reasons for its knowledge or belief if it knows or has reason to believe that a regulated mutual fund for which it provides a principal office, or a promoter or operator of such a mutual fund — (a) is or is likely to become unable to meet its obligations as they fall due; (b) is carrying on business otherwise than in accordance with this or any other law; or (c) is carrying on business in a manner that is or is likely to be prejudicial to investors or creditors of the mutual fund. Mutual Funds 19 A person other than a licensed mutual fund Very serious Act administrator representing in any way that the person is (2021 Revision) carrying on or attempting to carry on business in or from the Islands as a mutual fund administrator. Mutual Funds 20(1) Failure of a licensed mutual fund administrator to have Serious Act its accounts audited annually by an auditor approved by (2021 Revision) the Authority. Mutual Funds 20(2) Failure of a licensed mutual fund administrator to send Serious Act its audited accounts in respect of a financial year of the (2021 Revision) administrator n such manner as the Authority may from time to time direct, to the Authority within six months of the end of that financial year or within such extension of that period as the Authority may allow. Mutual Funds 21 A licensed mutual fund administrator appointing a Serious Act director or similar senior officer, or a general partner (2021 Revision) without — (a) obtaining the Authority’s written approval of Page 152 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule the appointment; or (b) being exempt by the Authority from the obligation to obtain the Authority’s approval. Mutual Funds 22 Failure of a licensed mutual fund administrator to have Serious Act at least two directors at all times. (2021 Revision) Mutual Funds 22C(1) Failure of an EU Connected Fund that is marketing in a Serious Act country or territory within the EEA to notify the Authority (2021 Revision) within three months of a date to be specified by Order made by Cabinet and in the manner designated by the Authority that the EU Connected Fund is marketing in a country or territory within the EEA. Mutual Funds 22C(2) Failure of an EU Connected Fund that commences Serious Act marketing in a country or territory within the EEA after (2021 Revision) the date specified in subsection (1) to notify the Authority, in the manner designated by the Authority, that the EU Connected Fund is marketing in a country or territory within the EEA within twenty-one days of the commencement of marketing in a country or territory within the EEA. Mutual Funds 22F Failure of an EU Connected Fund that elects to apply to Serious Act be licensed or registered pursuant to section 22B and (2021 Revision) is granted a licence or is registered under this Act, to comply with the applicable provisions set out in Part IIIA of this Act. Mutual Funds 23(2) Failure of the operator of a regulated mutual fund or a Serious Act regulated EU Connected Fund to ensure that an (2021 Revision) instruction given to the mutual fund or the EU Connected Fund in accordance with subsection (1) is complied with within the specified time. Mutual Funds 24(2) Failure of a person to comply with an instruction given Serious Act to that person in accordance with subsection (1). (2021 Revision) Mutual Funds 24(3) A person giving information or an explanation for the Very serious Act purpose of subsection (1) that the person that person (2021 Revision) knows or should reasonably know is false or c Revised as at 31st December, 2021 Page 153 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule misleading. Mutual Funds 26(2) Failure of a licensed mutual fund administrator to Serious Act comply with an instruction given to it under subsection (2021 Revision) (1). Mutual Funds 27(2) Failure of a person to comply with an instruction given Serious Act to that person under subsection (1). (2021 Revision) Mutual Funds 27(3) A person giving information or an explanation for the Very serious Act purpose of subsection (1) giving to the Authority (2021 Revision) information or an explanation that that person knows or should reasonably know is false or misleading. Mutual Funds 30(9) Failure of a person appointed in respect of a mutual Very serious Act fund or a regulated EU Connected Fund under (2021 Revision) subsection (3)(d) or (e) to — (a) supply the Authority with such information in respect of the mutual fund or the EU Connected Fund as is specified by the Authority when requested to do so; (b) prepare and supply to the Authority a report on the affairs of the mutual fund or the EU Connected Fund making, where appropriate, recommendations in respect of the mutual fund or the EU Connected Fund within three months of that person’s appointment, or within such other period as the Authority may specify; (c) supply to the Authority such other information, reports and recommendations as the Authority specifies after supplying the report referred to in paragraph (b) if that person’s appointment is not terminated after supplying the report under (b). Mutual Funds 31(8) Failure of a person appointed in respect of a licensed Very serious Act mutual fund administrator under subsection 3(d) or (e) (2021 Revision) to — (a) supply the Authority with such information in respect of the administrator’s administration of mutual funds as is specified by the Authority when requested to do so by the Authority; Page 154 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (b) prepare and supply to the Authority a report on the administrator’s administration of the mutual fund making, where appropriate, recommendations in respect of the administrator within three months of that person’s appointment, or within such other period as the Authority may specify; or (c) supply to the Authority such other information, reports and recommendations as the Authority specifies after supplying the report referred to in paragraph (b), if that person’s appointment is not terminated after supplying the report under paragraph (b). Mutual Funds 34 A person hindering the Authority in the exercise of any Serious Act of its powers under the Law. (2021 Revision) Mutual Funds 35(1) Failure of an auditor to immediately give the Authority Serious Act written notice of that auditor’s information or suspicion (2021 Revision) and, in the case of suspicion, that auditor’s reason for that suspicion if an auditor, in the course of carrying out an audit of the accounts of a regulated mutual fund or a regulated EU Connected Fund, obtains information or suspects that the mutual fund or the EU Connected Fund is — (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or winding-up its business voluntarily in a manner that is prejudicial to its investors or creditors; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business otherwise than in compliance with — (i) this Act or any regulations made hereunder; (ii) the Monetary Authority Act (2020 c Revised as at 31st December, 2021 Page 155 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Revision); (iii) the Anti-Money Laundering Regulations (2020 Revision); or (iv) a condition of the licence. Mutual Funds 35(2) Failure of an auditor to immediately give the Authority Serious Act written notice of that person’s information or suspicion (2021 Revision) and, in the case of suspicion, that person’s reason for that suspicion If an auditor, in the course of carrying out an audit of the accounts of a licensed mutual fund administrator, obtains information or suspects that the mutual fund administrator is — (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or winding-up its mutual fund administration business voluntarily in a manner that is prejudicial to investors in any mutual fund it is administering or to its creditors or the creditors of any such mutual fund; or (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business otherwise than in compliance with — (i) this Act or any regulations made hereunder; (ia) in respect of a licensed mutual funds administrator, Part XVIIA of the Companies Act (2022 Revision), Part 12 of the Limited Liability Companies Act (2021 Revision) and Part 8 of the Limited Liability Partnership Act (2021 Revision), if the licensee is a “corporate services provider” as defined in that Part; (ii) the Monetary Authority Act (2020 Revision); Page 156 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (iii) the Anti-Money Laundering Regulations (2020 Revision); or (iv) a condition of the licence. Mutual Funds 35(4) A regulated mutual fund or a regulated EU Connected Serious Act Fund or a licensed mutual fund administrator appointing (2021 Revision) as an auditor a person disqualified under subsection (3). 30 - Mutual Funds (Annual Returns) Regulations 30. MUTUAL FUNDS (ANNUAL RETURNS) REGULATIONS (2021 REVISION) Mutual Funds 2(1) Failure of a regulated mutual fund to complete and Serious (Annual submit accurate and complete returns for — Returns) (a) the fund containing the particulars set forth Regulations in the Schedule to the Authority; or (2021 Revision) (b) each sub-fund in its structure if the fund has sub-funds in its structure, in such manner as the Authority may from time to time direct, within six months after the end of the financial year to which it relates or within such extension of that period as the Authority may allow. Mutual Funds 2(4) Failure of the operator of a regulated mutual fund to Minor (Annual ensure that the fund complies with paragraphs (1) and Returns) (1A). Regulations (2021 Revision) 31 - Mutual Funds (EU Connected Fund (Alternative Investment Fund Managers Directive)) Regulations 31. MUTUAL FUNDS (EU CONNECTED FUND (ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE)) REGULATIONS, 2016 Mutual Funds 2(a) Failure of an EU Connected Fund that is a regulated Serious c Revised as at 31st December, 2021 Page 157 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (EU Connected mutual fund, including an EU Connected Fund which Fund has elected to be licensed or registered pursuant to (Alternative section 22B of the Mutual Funds Act (2021 Revision) to Investment submit the name of the Member State in which the Fund Managers marketing takes place or is expected to take place to Directive)) the Authority. Regulations, 2016 Mutual Funds 2(b) Failure of an EU Connected Fund that is a regulated Serious (EU Connected mutual fund, including an EU Connected Fund which Fund has elected to be licensed or registered pursuant to (Alternative section 22B of the Mutual Funds Act (2021 Revision) to Investment submit the date on which such marketing commenced, Fund Managers or is expected to commence to the Authority. Directive)) Regulations, 2016 Mutual Funds 2(c) Failure of an EU Connected Fund that is a regulated Serious (EU Connected mutual fund, including an EU Connected Fund which Fund has elected to be licensed or registered pursuant to (Alternative section 22B of the Mutual Funds Act (2021 Revision) to Investment submit the name of the competent authority or Fund Managers authorities in the Member State in which the marketing Directive)) takes place, or is expected to take place, to the Regulations, Authority. 2016 Mutual Funds 2(d) Failure of an EU Connected Fund that is a regulated Serious (EU Connected mutual fund, including an EU Connected Fund which Fund has elected to be licensed or registered pursuant to (Alternative section 22B of the Mutual Funds Act (2021 Revision) to Investment submit the name and contact details of the EU Fund Managers Connected Fund’s manager and country of Directive)) authorisation to the Authority.

Regulations, 2016 Mutual Funds 2(e) Failure of an EU Connected Fund that is a regulated Serious (EU Connected mutual fund, including an EU Connected Fund which Fund has elected to be licensed or registered pursuant to (Alternative section 22B of the Mutual Funds Act (2021 Revision) to Page 158 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Investment submit a declaration that the EU Connected Fund is Fund Managers marketed in each Member State referred to in Directive)) paragraph (a) in accordance with the laws in force in Regulations, that Member State to the Authority. 2016 Mutual Funds 2(f) Failure of an EU Connected Fund that is a regulated Minor (EU Connected mutual fund, including an EU Connected Fund which Fund has elected to be licensed or registered pursuant to (Alternative section 22B of the Mutual Funds Act (2021 Revision)to Investment submit the prescribed fee to the Authority. Fund Managers Directive)) Regulations, 2016 Mutual Funds 3(a) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit the name of the EU Connected Fund Fund to the Authority. (Alternative Investment Fund Managers Directive)) Regulations, 2016 Mutual Funds 3(b) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit the type of fund, setting out why Fund the EU Connected Fund is not required to be regulated, (Alternative to the Authority. Investment Fund Managers Directive)) Regulations, 2016 Mutual Funds 3(c) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit the name or contact details of Fund operators of the EU Connected Fund and its (Alternative administrator to the Authority. Investment Fund Managers Directive)) c Revised as at 31st December, 2021 Page 159 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Regulations, 2016 Mutual Funds 3(d) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit the name or address of the EU Fund Connected Fund’s registered office to the Authority. (Alternative Investment Fund Managers Directive)) Regulations, 2016 Mutual Funds 3(e) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit the name or contact details of the Fund EU Connected Fund’s Cayman Islands legal counsel to (Alternative the Authority. Investment Fund Managers Directive)) Regulations, 2016 Mutual Funds 3(f) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit each name of each Member Fund State in which the marketing takes place, or is expected (Alternative to take place, to the Authority. Investment Fund Managers Directive)) Regulations, 2016 Mutual Funds 3(g) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit the date on which such marketing Fund commenced, or is expected to commence, to the (Alternative Authority. Investment Fund Managers Directive)) Regulations, 2016 Page 160 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Mutual Funds 3(h) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit the each name of each Fund competent authority in each corresponding Member (Alternative State in which the marketing takes place, or is expected Investment to take place, to the Authority. Fund Managers Directive)) Regulations, 2016 Mutual Funds 3(i) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit the name or contact details of the Fund EU Connected Fund’s manager, to the Authority. (Alternative Investment Fund Managers Directive)) Regulations, 2016 Mutual Funds 3(j) Failure of an EU Connected Fund that is not a regulated Serious (EU Connected mutual fund to submit a declaration that the EU Fund Connected Fund is marketed in each Member State in (Alternative accordance with the laws and regulations in force in the Investment Member State, to the Authority. Fund Managers Directive)) Regulations, 2016 Mutual Funds 3(k) Failure of an EU Connected Fund that is not a regulated Minor (EU Connected mutual fund to submit the prescribed fee to the Fund Authority. (Alternative Investment Fund Managers Directive)) Regulations, 2016 Mutual Funds 4 Failure of an EU Connected Fund to — Serious (EU Connected (a) notify the Authority within 21 days of the date Fund upon which marketing ceased in all Member c Revised as at 31st December, 2021 Page 161 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (Alternative States; or Investment (b) notify the Authority of any change made to Fund Managers the information provided pursuant to Directive)) regulation 2 or regulation 3, as the case may Regulations, be, within twenty-one days of the date of the 2016 change. Mutual Funds 5 Failure of an EU Connected Fund to submit to the Serious (EU Connected Authority in the manner designated by the Authority — Fund (a) written confirmation that the information in (Alternative the notification filed pursuant to regulation 2 Investment or regulation 3 has not changed; and Fund Managers (b) a declaration that the EU Connected Fund is Directive)) being marketed in each Member State in Regulations, accordance with the applicable laws of that 2016 Member State, within six months after the date of the end of the financial year of an EU Connected Fund. Mutual Funds 6 Failure of an EU Connected Fund to, at all times when Serious (EU Connected requested by the Authority, provide the Authority with Fund all information necessary for the Authority to be (Alternative satisfied that the EU Connected Fund is being Investment marketed in each Member State in accordance with the Fund Managers applicable laws of that Member State. Directive)) Regulations, 2016 32 - Private Funds Act 32. PRIVATE FUNDS Act (2021 Revision) Private Funds 4(1) Failure of an operator of a private fund to ensure Very Serious Act (2021 compliance by that private fund with this Act. Revision) Private Funds 5(1) Subject to subsection (3) and (6), where a private fund Very Serious Act (2021 carries on or attempts to carry on business in or from Revision) the Islands unless — (a) it has submitted an application for Page 162 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule registration to the Authority in accordance with section 6 within twenty-one days after its acceptance of capital commitments from investors for the purposes of investments; (b) the prescribed details in respect to the private fund are filed with the Authority; (c) the prescribed annual registration fee under section 10 has been paid in respect of the private fund; (d) it complies with any conditions of its registration imposed under section 7; and (e) it complies with the provisions of this Act. Private Funds 5(6) Where a private fund which is required to be registered Very Serious Act (2021 under subsection (1) accepts capital contributions from Revision) investors in respect of investments while the private fund is not registered by the Authority in accordance with section 7. Private Funds 10(1) Failure of a private fund to pay to the general revenue Minor Act (2021 of the Islands the prescribed annual registration fee on Revision) or before 15th January in each year. Private Funds 10(2) Failure of a private fund which does not pay the Minor Act (2021 prescribed annual registration fee on or before 15th Revision) January in each year to pay the additional fee equal to one twelfth of that annual registration fee for each month or part of a month during which the annual registration fee and any additional fee imposed by virtue of this subsection. Private Funds 11(1) Failure of a private fund which — Serious Act (2021 (a) makes any change, or becomes aware of Revision) any change, that materially affects any information submitted to the Authority under section 6 or otherwise under this Act; or (b) changes its registered office or the location of its principal office, to, within twenty-one days after making the change or becoming aware of the change, as the case may be, file with the Authority the details of the change. Private Funds 12(1) Where a person other than a private fund represents in Very Serious c Revised as at 31st December, 2021 Page 163 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Act (2021 any way that the person is carrying on or attempting to Revision) carry on business in or from the Islands as a private fund. Private Funds 13(1) Failure of a private fund to have its accounts audited Serious Act (2021 annually by an auditor approved by the Authority. Revision) Private Funds 13(2) Failure of a private fund to prepare its accounts in Serious Act (2021 accordance with the International Financial Reporting Revision) Standards or the generally accepted accounting principles of the United States of America, Japan, Switzerland or a non-high risk jurisdiction. Private Funds 13(3) Failure of an auditor approved by the Authority to carry Serious Act (2021 out the annual audit under subsection (1) in accordance Revision) with the International Standards on Auditing or the generally accepted auditing standards of the United States of America, Japan, Switzerland or a non-high risk jurisdiction. Private Funds 13(4) Failure of a private fund to send its audited accounts in Serious Act (2021 respect of each financial year of the private fund to the Revision) Authority in such manner as the Authority directs and within six months of the end of that financial year or within such extension of that period as the Authority may allow. Private Funds 14 Failure of a private fund to, in respect of each financial Minor Act (2021 year of the private fund, submit an annual return in the Revision) prescribed form. Private Funds 15 Failure of a private fund to maintain its records in an Serious Act (2021 accessible manner and in accordance with rules, Revision) statements of principle and guidance issued by the Authority under section 34 of the Monetary Authority Acy (2020 Revision). Private Funds 16(1) Failure of a private fund to have appropriate and Serious Act (2021 consistent procedures for the purposes of proper Revision) valuations of its assets, which will ensure that valuations are conducted in accordance with the requirements in this Act. Page 164 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Private Funds 16(3) Failure of a private fund to ensure that valuations of the Serious Act (2021 assets of the private fund are carried out at a frequency Revision) that is appropriate to the assets held by the private fund and, in any case, on at least an annual basis. Private Funds 16(4) Failure of a private fund to ensure that valuations of the Serious Act (2021 assets of the private fund are performed by — Revision) (a) an independent third party that is appropriately professionally qualified to conduct valuations in a non-high risk jurisdiction; (b) the manager or operator of the private fund, or a person who has a control relationship with the manager of the private fund, provided that — (i) the valuation function is independent from the portfolio management function; or (ii) potential conflicts of interest are properly identified and disclosed to the investors of the private fund; or (c) an administrator not falling under paragraph (a) who is appointed by the private fund. Private Funds 16(5) Failure of a private fund which did not have the Serious Act (2021 valuation of its assets performed by an independent Revision) third party in accordance with subsection 4(a) to have its valuations verified by an auditor or independent third party, where the Authority so requires. Private Funds 16(6) Failure of a private fund to ensure that valuation of the Serious Act (2021 assets of the private fund are carried out by — Revision) (a) an independent third party; (b) the manager or operator of the private fund or a person who has a control relationship with the manager of the private fund; or (c) an administrator not falling under subsection 4(a) c Revised as at 31st December, 2021 Page 165 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule appointed by the private fund to carry out, a valuation of the assets of the private fund in accordance with any requirements in relation to valuations, including in respect of the degree and regularity. Private Funds 17(1) Subject to subsection (3), failure of a private fund to Serious Act (2021 appoint a custodian to perform the duties set out in Revision) subsection (2). Private Funds 17(2) Failure of a custodian to — Serious Act (2021 (a) hold in custody, in segregated accounts Revision) opened in the name, or for the account, of the private fund, the custodial fund assets; or (b) verify, based on information provided by the private fund and available external information, that the private fund holds title to any other fund asset and maintain a record of those other fund assets. Private Funds 17(3) Failure of a private fund which notifies the Authority of Serious Act (2021 its intention not to appoint a custodian pursuant to Revision) subsection (3) to appoint one of the following persons to carry out the title verification described in subsection (2)(b) — (a) an administrator or another independent third party; or (b) the manager or operator, or a person with a control relationship with the manager of the private fund, provided that — (i) the title verification function is independent from the portfolio management function; or (ii) potential conflicts of interest are properly identified and disclosed to the investors of the private fund. Private Funds 17(5) Failure of a private fund which did not have the title Serious Act (2021 verification described in subsection (2)(b) performed by Page 166 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Revision) a custodian, an administrator or another independent third party appointed in accordance with subsection (1) or (4)(a), to have its title verification verified by an appropriately professionally qualified independent third party, where the Authority so requires. Private Funds 18(1) Failure of a private fund to appoint one of the following Serious Act (2021 persons to perform the cash monitoring duties set out Revision) in subsection (2) — (a) an administrator, custodian or another independent third party; or (b) the manager or operator, or a person who has a control relationship with the manager of the private fund, provided that — (i) the cash monitoring function is independent from the portfolio management function; or (ii) potential conflicts of interest are properly identified and disclosed to the investors of the private fund. Private Funds 18(2) Failure of an administrator, custodian or another Serious Act (2021 independent third party, or the manager or operator or Revision) a person who has a control relationship with the manager of the private fund, appointed under subsection (1) to — (a) monitor the cash flows of the private fund; (b) ensure that all cash of the private fund has been booked in cash accounts opened in the name, or for the account, of the private fund; or (c) ensure that all payments made by investors to the private fund in respect of investment interests have been received. Private Funds 18(3) Failure of a private fund which did not have the cash Serious Act (2021 monitoring duties described in subsection (2)(b) Revision) performed by an administrator, a custodian or another independent third party appointed in accordance with subsection (1)(a), to have its cash monitoring verified by an independent third party, where the Authority so c Revised as at 31st December, 2021 Page 167 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule requires. Private Funds 20(1) Failure of a private fund to comply with an instruction by Very Serious Act (2021 the Authority to — Revision) (a) have the private fund’s accounts audited by an auditor approved by the Authority and to submit them to the Authority within such time as the Authority specifies; or (b) provide a one-off or periodic report to the Authority on certain matters requested by the Authority in connection with the private fund in such form and within such time as the Authority specifies. Private Funds 21(1) Failure of a private fund to comply with a request by the Very Serious Act (2021 Authority to provide to the Authority with such Revision) documents, statements or other information in respect of a private fund as the Authority may reasonably require in connection with the Authority’s functions under this Act. Private Funds 22(1) Failure of a person who the Authority has reasonable Very Serious Act (2021 grounds for believing is carrying on business or Revision) attempting to carry on business as a private fund in contravention of section 5, to, where instructed by the Authority, give to the Authority such information or explanation as the Authority may reasonably require to enable the Authority to carry out its duty under this Act. Private Funds 22(2) Where a person who is instructed to give information or Very Serious Act (2021 an explanation for the purpose of subsection (1) gives Revision) to the Authority information or an explanation that the person knows or should reasonably know is false or misleading. Private Funds 25(8) Failure of a person appointed in respect of a private Very Serious Act (2021 fund under subsection 2(d) or 2(e) to — Revision) (a) when requested to do so by the Authority, supply the Authority with such information in respect of the private fund as may be specified by the Authority; (b) within three months of the person’s appointment, or within such other period as Page 168 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule the Authority may specify, prepare and supply to the Authority a report on the affairs of the private fund making, where appropriate, recommendations in respect of the private fund; or (c) if the person’s appointment is not terminated after supplying the report referred to in paragraph (b), supply to the Authority such other information, reports and recommendations as the Authority specifies. Private Funds 27 Where a person hinders the Authority in the exercise of Very Serious Act (2021 any of its powers under this Act. Revision) Private Funds 29(1) Failure of an auditor to immediately give to the Authority Serious Act (2021 written notice of any information or a suspicion, and in Revision) the case of suspicion, the reason for that suspicion, where the auditor, in the course of carrying out an audit of the accounts of a private fund pursuant to section 13(1), obtains information or suspects that the private fund is — (a) unable or likely to become unable to meet its obligations as they fall due; (b) carrying on or attempting to carry on business or winding up its business voluntarily in a manner that is prejudicial to its investors or creditors; (c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited; (d) carrying on or attempting to carry on business in a fraudulent or criminal manner; or (e) carrying on or attempting to carry on business otherwise than in compliance with — (i) this Act or any regulations made under this Act; (ii) the Monetary Authority Act (2020 Revision); (iii) the Anti-Money Laundering Regulations (2020 Revision); or c Revised as at 31st December, 2021 Page 169 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (iv) a condition of its registration imposed under this Act. Private Funds 29(3) Where a private fund appoints as an auditor a person Serious Act (2021 removed under subsection (2), unless the Authority is Revision) satisfied that the person will in future comply with subsection (1). 33 - Securities Investment Business Act 33. SECURITIES INVESTMENT BUSINESS ACT (2020 REVISION) Securities 4B(1) Failure of a licensee or registered person — Very serious Investment (a) to cease or refrain from — Business Act (i) committing an act that is an unsafe or (2020 Revision) unsound practice in conducting the business of the licensee or a registered person; or (ii) pursuing a course of conduct that is an unsafe or unsound practice in conducting the business of the licensee or registered person; or (b) to perform such acts as in the opinion of the Authority, are necessary to remedy or ameliorate the situation, if it is directed by the Authority to so in relation to the securities investment business of the licensee or registered person. Securities 5(1) A person carrying on or purporting to carry on securities Very serious Investment investment business unless that person holds a licence Business Act or registration granted under this Act or is exempt from (2020 Revision) holding a licence or registration. Securities 5(4) Failure of a person specified in Schedule 4 to — Very serious Investment (a) file an application in the prescribed form or Business Act (b) pay the prescribed registration fee to the (2020 Revision) Authority, in order to register with the Authority. Page 170 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 5(4C) Failure of a registered person to notify the Authority Minor Investment within twenty-one days after any material change in the Business Act information filed by the registered person in its (2020 Revision) application or annual declaration. Securities 5(4D) Failure of a registered person to pay the prescribed Minor Investment annual fee to pay a surcharge of one-twelfth of that fee Business Act for every month or part of a month after the 15th (2020 Revision) January in each year that the annual fee is not paid. Securities 5(4E) Failure of a registered person to — Minor Investment (a) file with the Authority, on or before the 15th Business Act day of January in each year, an annual (2020 Revision) declaration in such form as the Authority may approve; or (b) pay to the Authority the prescribed annual fee at the time of the filing of the declaration. Securities 5(5) Failure of a registered person to provide the report Serious Investment specified under section 17(2A)(e). Business Act (2020 Revision) Securities 8(1) 1. A licensee issuing shares without the prior approval Serious Investment of the Authority. Business Act (2020 Revision) 2. A licensee voluntarily transferring or disposing of issued shares or interests without the prior approval of the Authority. Securities 9(a) Failure of a licensee or registered person with a name Very serious Investment which is identical with that of another person, whether Business Act within the Islands or not, or which so nearly resembles (2020 Revision) that name as to be likely to deceive to forthwith change its name within three calendar months of the receipt of notice from the Authority of its requirements. Securities 9(b) Failure of a licensee or registered person with a name Very serious Investment which in the opinion of the Authority connotes, falsely, Business Act the patronage of or connection with a person whether (2020 Revision) within the Islands or not, to forthwith change its name c Revised as at 31st December, 2021 Page 171 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule within three calendar months of the receipt of notice from the Authority of its requirements. Securities 9(c) Failure of a licensee or registered person with a name Very serious Investment which in the opinion of the Authority connotes, falsely, Business Act that it has a special status in relation to or derived from (2020 Revision) the Government, or has the official backing of or acts on behalf of the Government or of any of its departments or officials, to forthwith change its name within three calendar months of the receipt of notice from the Authority of its requirements. Securities 9(d) Failure of a licensee or registered person with a name Very serious Investment which in the opinion of the Authority is liable to mislead Business Act investors, or constitute a misrepresentation, to forthwith (2020 Revision) change its name within three calendar months of the receipt of notice from the Authority of its requirements. Securities 9(e) Failure of a licensee or registered person with a name Very serious Investment which includes any prescribed word or expression, to Business Act forthwith change its name within three calendar months (2020 Revision) of the receipt of notice from the Authority of its requirements. Securities 10 Failure of a licensee or a registered person to Very serious Investment separately account for the funds and property of each Business Act client and for the licensee’s or registered person’s own (2020 Revision) funds and property. Securities 13(1) Failure of a licensee to have its accounts audited Very serious Investment annually, or at such other time as the Authority may Business Act require, by an auditor who is a member of — (2020 Revision) (a) the Institute of Chartered Accountants in England and Wales; (b) the Canadian Institute of Chartered Accountants; (c) the Chartered Association of Certified Accountants; (d) the American Institute of Certified Public Accountants; or (e) any other professional body or institute approved by the Authority. Page 172 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 13(2) Failure of a licensee under subsection to forward to the Minor Investment Authority — Business Act (a) the auditor’s or the licensee’s audited (2020 Revision) accounts for the financial year just ended; or (b) a certificate of compliance with the provisions of this Act and any regulations made under this Act or the Monetary Authority Act (2020 Revision), signed by the licensee or if a company, a director of the licensee, within six months of the end of a licensee’s financial year. Securities 13(3) 1. A licensee changing its auditor without the prior Minor Investment written approval of the Authority. Business Act (2020 Revision) 2. Failure of a licensee to explain the circumstances giving rise to the change of its auditor prior to approval being given. Securities 14(1) 1. A licensee opening a subsidiary, branch, agency or Serious Investment representative office outside the Islands without the Business Act prior written approval of the Authority. (2020 Revision) 2. A licensee changing its name without the prior written approval of the Authority. Securities 14(2) Failure of a licensee to notify the Authority immediately Serious Investment of any change of address of its place of business. Business Act (2020 Revision) Securities 15(4)(a) Failure of a registered person which is a company Serious Investment incorporated under the Companies Act (2022 Business Act Revision), to have a minimum of — (2020 Revision) (a) two directors who are individuals; or (b) one corporate director, each of whom is complying with the Directors Registration and Licensing Act, 2014. Securities 15(4)(b) Failure of a registered person which is a general Serious Investment partnership established, or a limited partnership Business Act registered under the Partnership Act (2013 Revision), (2020 Revision) to have a minimum of two partners. c Revised as at 31st December, 2021 Page 173 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 15(4)(c) Failure of a registered person which is an exempted Serious Investment limited partnership registered under the Exempted Business Act Limited Partnership Act (2021 Revision), to have a (2020 Revision) minimum of two directors (or equivalent officers) appointed in respect of its general partner (or where the general partner is itself an exempted limited partnership registered under the Exempted Limited Partnership Act (2021 Revision) at the level of the ultimate general partner). Securities 15(4)(d) Failure of a registered person which is a foreign Serious Investment company registered under Part IX of the Companies Business Act Act (2022 Revision), to have a minimum of two directors (2020 Revision) (or equivalent officers). Securities 15(4)(e) Failure of a registered person which is a limited liability Serious Investment company formed and registered under the Limited Business Act Liability Companies Act (2021 Revision), to have a (2020 Revision) minimum of two managers complying with the Directors Registration and Licensing Act, 2014 [Law 10 of 2014]. Securities 15(4)(f) Failure of a registered person which is a limited liability Serious Investment partnership formed and registered under the Limited Business Act Liability Partnership Act (2021 Revision), to have a (2020 Revision) minimum of two managing partners. Securities 15(5) Failure of a registered person to notify the Authority of Minor Investment any alteration made in the senior officers of a registered Business Act person within twenty-one days of the alteration. (2020 Revision) Securities 16(1A) Failure of a registered person to provide information Serious Investment related to its securities investment business to the Business Act Authority when required by the Authority to do so. (2020 Revision) Securities 16(4) A person knowingly or recklessly providing any Very serious Investment information to the Authority which is false or misleading Business Act in a material particular. (2020 Revision) Page 174 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 17(1) Failure of a licensee or a registered person to comply Very serious Investment with a written notice given by the Authority. Business Act (2020 Revision) Securities 19(1) Failure of an auditor to immediately give the Authority Serious Investment and the licensee or registered person written notice of Business Act that person’s knowledge or belief if an auditor, in the (2020 Revision) course of carrying out an audit or producing a report under section 17(2A)(e) becomes aware of or has reasonable grounds to believe that the licensee or registered person — (a) is or is likely to become unable to meet its obligations as they fall due; (b) is carrying on business in breach of this Act or any regulations made hereunder; (c) is carrying on or attempting to carry on business in a manner that is prejudicial to its clients or is winding up its business voluntarily in a manner that is prejudicial to its clients or creditors; or (d) is carrying on or attempting to carry on business without maintaining any or sufficient accounting records or record keeping systems to enable the auditor to carry out an audit or produce a report under section 17(2A)(e). 34 - Securities Investment Business (Conduct of Business) Regulations 34. SECURITIES INVESTMENT BUSINESS (CONDUCT OF BUSINESS) REGULATIONS, 2003 Securities 4(1) Failure of a licensee to at all times maintain insurance Serious Investment to cover, at least — Business (a) professional indemnity; (Conduct of (b) the professional liability of senior officers Business) and corporate secretaries; and Regulations, (c) business interruption, 2003 in an amount appropriate to the size, complexity and c Revised as at 31st December, 2021 Page 175 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule nature of the securities investment business of the licensee. Securities 4(2) Failure of a licensee to file with the Authority current Minor Investment details of the insurance required under paragraph (1) Business prior to the renewal of a licensee’s securities (Conduct of investment business licence. Business) Regulations, 2003 Securities 5(1) Failure of a licensee to ensure that the fact that it is Minor Investment regulated by the Authority is disclosed in all Business correspondence, advertisements and other documents (Conduct of relating to the licensee’s securities investment Business) business. Regulations, 2003 Securities 5(2) A licensee representing to any person that, because of Serious Investment its status as a licensee, it is indemnified by the Authority Business or by the government against any loss or damage which (Conduct of may arise from the conduct of its business as a Business) licensee. Regulations, 2003 Securities 6(1) Failure of a licensee to ensure that every senior officer Serious Investment and employee of the licensee enters into a written Business undertaking to observe the requirements of paragraph (Conduct of (3). Business) Regulations, 2003 Securities 6(2) Failure of a licensee to designate its senior officers’ and Serious Investment employees’ own accounts, and any other accounts Business subject to the requirements in sub-regulation (3), in a (Conduct of manner that enables such accounts to be distinguished Business) from client accounts. Regulations, 2003 Page 176 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 6(3) 1. Failure of a senior officer or employee to obtain the Serious Investment prior written consent of the licensee in order to deal Business with the senior officer or employee’s own accounting (Conduct of securities of any kind in respect of which the licensee Business) carries on securities investment business which may Regulations, be general or specific. 2003 2. A senior officer or employee — (a) dealing in securities for the senior officer’s or employee’s own account with any of the licensee’s clients; or (b) dealing for the senior officer or employee’s own account at a time or in a manner, which the senior officer or employee knows or should know, is likely to have a direct adverse effect on the particular interests of any client of the licensee. 3. Failure of a senior officer or the employee to report promptly to the licensee within two business days any transaction for the senior officer’s or the employee's own account for which permission is required which the senior officer or employee enters into otherwise than through the licensee unless the senior officer or employee has arranged for the licensee to receive promptly a copy of the contract or similar note issued in respect of the transaction. Securities 6(4) A senior officer or employee who is precluded from Serious Investment entering into a transaction for the senior officer’s or Business employee’s own account procuring any other person to (Conduct of enter into a transaction on behalf of the senior officer or Business) employee. Regulations, 2003 Securities 7 Failure of a licensee to establish and maintain Serious Investment compliance procedures designed to ensure that no Business senior officer accepts any gift or inducement that is (Conduct of likely to conflict with the senior officer’s or employee’s Business) duties to any client of the licensee. Regulations, 2003 c Revised as at 31st December, 2021 Page 177 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 8(1) Failure of a licensee to establish and maintain Serious Investment procedures to ensure that sufficient information is Business recorded and retained about its securities investment (Conduct of business, in relation to the persons under paragraphs Business) (a) to (e). Regulations, 2003 Securities 8(2) Failure of a licensee to retain records for a minimum Serious Investment period of five years from the relevant date. Business (Conduct of Business) Regulations, 2003 Securities 9 Failure of a licensee to notify the Authority immediately Serious Investment in writing of the occurrence of any of the activities in Business paragraphs (a) to (s) in relation to the licensee or its (Conduct of securities investment business as the case may be. Business) Regulations, 2003 Securities 10(2) Failure of a licensee to ensure that an advertisement Serious Investment does not contain or include any of the statements, Business promises, forecasts or comparisons set out in (Conduct of paragraphs (a) to (g). Business) Regulations, 2003 Securities 10(3) 1. Failure of a licensee to ensure that the content and Serious Investment format of an advertisement — Business (a) is not so designed as to be likely to be (Conduct of misunderstood; Business) (b) is not so designed as to disguise the Regulations, significance of any warning statement or 2003 information which is required to be included or provided under Part III; (c) is not presented in such a way that it is not clearly identifiable as an advertisement; or Page 178 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (d) does not signify in any way that the advertisement is approved by the Authority. Securities 10(4) Failure of the holder of a securities investment business Serious Investment license issued under section 6 of the Securities Business Investment Business Act (2020 Revision) to ensure that (Conduct of an advertisement — Business) (a) identifies the licensee who issued or made it Regulations, or caused it to be issued or made including 2003 a full address; or (b) discloses the identity of the licensee’s regulator. Securities 10(5) Failure of the holder of a securities investment business Serious Investment license issued under section 6 of the Securities Business Investment Business Act (2020 Revision) to ensure that (Conduct of an advertisement specifies all of the terms and Business) conditions that attach to an investment unless — Regulations, (a) the terms and conditions which are specified 2003 give a fair indication of the nature of the investment and the risks involved; and (b) the advertisement contains or provides information as to how a written statement of all the terms and conditions can be obtained. Securities 10(6) Failure of the holder of a securities investment business Serious Investment license issued under section 6 of the Securities Business Investment Business Act (2020 Revision) to ensure that (Conduct of an advertisement discloses any special areas of risk Business) relating to the investment including limited Regulations, marketability. 2003 Securities 10(7) Failure of the holder of a securities investment business Serious Investment license issued under section 6 of the Securities Business Investment Business Act (2020 Revision) to ensure that (Conduct of where the value of an investment may fluctuate or is not Business) guaranteed (or both), that an advertisement states that Regulations, fact prominently. 2003 Securities 10(8) Failure of the holder of a securities investment business Serious c Revised as at 31st December, 2021 Page 179 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Investment license issued under section 6 of the Securities Business Investment Business Act (2020 Revision) to ensure that (Conduct of where the value of an investment is guaranteed, that an Business) advertisement states clearly the nature of the Regulations, guarantee and to what it relates and whether there are 2003 any matters that may affect the investor’s ability to benefit from it. Securities 10(9) 1. The holder of a securities investment business Serious Investment license issued under section 6 of the Securities Business Investment Business Act (2020 Revision) publishing (Conduct of an advertisement which specifies a rate of return Business) without specifying how it is calculated. Regulations, 2003 2. Failure of the holder of a securities investment business licence issued under section 6 of the Securities Investment Business Act (2020 Revision) to ensure that the return or calculation on an advertisement to includes any element that involves any potential reduction of the investor’s capital. Securities 10(10) Failure of the holder of a securities investment business Serious Investment license issued under section 6 of the Securities Business Investment Business Act (2020 Revision) to ensure that (Conduct of an advertisement inviting investment in futures, options Business) and contracts for differences and other derivatives, Regulations, contains or provides a warning of the financial risks 2003 attached to such type of investment. Securities 10(11) Failure of a licensee to keep a record of all Serious Investment advertisements issued or made by it in accordance with Business regulation 8 and any relevant guidance issued by the (Conduct of Authority under that regulation. Business) Regulations, 2003 Securities 11(1) Failure of a licensee to — Serious Investment (a) act with high standards of market conduct, Business integrity and fair dealing in the conduct of (Conduct of securities investment business; Business) (b) act with due skill, care and diligence in Regulations, providing any service which that licensee 2003 provides or holds themselves out as willing Page 180 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule to provide; (c) ensure that clients are provided with sufficient and timely disclosure regarding — (i) the licensee’s fees, commission and recoverable disbursements; (ii) any risks associated with an investment strategy recommended to a client by the licensee; or (iii) any other matter reasonably to be regarded as necessary to enable the client to make informed decisions regarding securities investment business conducted with or through a licensee; or (d) take reasonable steps to ensure that, in relation to a private client any investment strategy in connection with securities investment business recommended to or executed on behalf that client, is suitable, having regard to all the relevant facts, except where execution-only services are being provided by the licensee. Securities 11(2) Failure of a licensee to take reasonable steps to ensure Very Serious Investment that clients are given fair treatment where there is or Business may be in respect of a securities investment business (Conduct of transaction, a conflict of interest between a licensee Business) and a client or between clients of a licensee. Regulations, 2003 Securities 12(1) Failure of a licensee to classify all persons with or for Serious Investment whom it transacts securities investment business as Business either private clients, professional clients or market (Conduct of counterparties. Business) Regulations, 2003 Securities 12(2) A licensee classifying a client who would otherwise be Serious Investment a private client as a professional client where that client Business does not fall within the definition of a high net worth (Conduct of person where an individual or within the definition of a c Revised as at 31st December, 2021 Page 181 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Business) sophisticated person under paragraph (d)(i) or (ii) of Regulations, regulation 2 and the licensee has not, in coming to the 2003 decision to classify the client as a professional client, complied with the requirements set out in subparagraphs (i), (ii) or (iii). Securities 12(3) A licensee classifying a client who would otherwise be Serious Investment a professional client as a market counterparty where Business the requirements set out in paragraphs (a), (b) and (c) (Conduct of have not been met. Business) Regulations, 2003 Securities 12(4) Failure of a licensee to review classifications at least Minor Investment annually, to ensure that the classifications remain Business appropriate where a licensee has classified a client as (Conduct of a professional client or a market counterparty under the Business) provision of paragraphs (2) or (3). Regulations, 2003 Securities 13 Failure of a licensee to ensure that any business that is Minor Investment outstanding is properly completed or is transferred to Business another licensee where a licensee decides to cease (Conduct of any securities investment business.

Business) Regulations, 2003 Securities 14 A licensee knowingly lending money or extending credit Serious Investment to a private client in connection with securities Business investment business or arranging for any other person (Conduct of to do so, without — Business) (a) making and recording an assessment of Regulations, the private client’s financial standing, 2003 based on information disclosed by that client and being satisfied that the arrangements for the loan or credit and the amount concerned are suitable in relation to the type of securities investment agreement proposed or likely to be entered into by the licensee; or Page 182 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (b) the client giving the client’s prior written consent to both the maximum amount of the loan or credit and the amount or basis of any charges to be levied in connection with the loan or credit. Securities 15 Failure of a licensee to which conducts securities Serious Investment investment business with any client to, subject to Business regulation 16, do so by means of a written agreement (Conduct of which includes, at a minimum, the matters set out in Business) regulation 17. Regulations, 2003 Securities 18 Failure of a licensee which is effecting transactions in Serious Investment a contingent liability investment on behalf of a private Business client, to specify in a client agreement, in addition to the (Conduct of items in regulation 17 — Business) (a) the circumstances in which the licensee Regulations, may require additional money from the 2003 client by way of margin; (b) that the minimum margin to be required for an on-exchange transaction must be equal to the margin requirements of the relevant securities investment business intermediary; (c) the form in which the margin may be provided, and the timing thereof; or (d) the steps that the licensee may be required or entitled to take in the event that the client fails to provide the required margin. Securities 19(1) Failure of a licensee which is exercising discretionary Serious Investment portfolio management for a client to specify in the client Business agreement, in addition to the items in regulation 17 — (Conduct of (a) the extent of discretion to be exercised by Business) the licensee, including any restrictions on Regulations, the category of investment in which the 2003 funds comprised in the portfolio may be invested, or on the amount, or the proportion of the fund which may be invested in any category or any one investment; (b) the frequency with which the client is to be c Revised as at 31st December, 2021 Page 183 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule supplied with a statement of the money and the investments comprised in the portfolio and a valuation thereof and the basis of the valuation; (c) if the agreement is to include a measure of portfolio performance, the basis on which that performance is to be measured; or (d) whether hedging or borrowing powers are to be used, and the nature of such powers and limits on their use. Securities 19(2) Failure of a licensee, on accepting the portfolio referred Minor Investment to under paragraph (1) to, as soon as is practical, send Business to the client a statement showing the current market (Conduct of value and composition of the portfolio. Business) Regulations, 2003 Securities 20 Failure of a licensee to, subject to paragraph (2) and Minor Investment after a transaction has been carried out for a client, Business send to the client or to the client’s order promptly, a (Conduct of contract note with the essential features of the Business) transaction in accordance with regulation 21. Regulations, 2003 Securities 22 Failure of a licensee to establish effective complaints Minor Investment handling systems and procedures that ensure that — Business (a) adequate records of complaints, including (Conduct of a central register, are established and Business) maintained; and Regulations, (b) all complaints are responded to in writing 2003 within fourteen days of receipt of such complaints. Securities 23 Failure of a licensee to make available to any client, on Minor Investment request, within a reasonable period of time after such Business request is made — (Conduct of (a) those parts of any written material and Business) records which relate to that client and Regulations, which the licensee has sent, or is required 2003 to send, to that client under these Page 184 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule regulations; or (b) copies of any correspondence received from that client relating to securities investment business, for the period during which it is required to keep relevant records under these regulations. Securities 24 Failure of a licensee that manages a portfolio for a client Minor Investment to provide a written statement to the client which Business contains adequate information on the value and (Conduct of composition of the portfolio as at the end of the period Business) covered by the statement — Regulations, (a) annually at the request of the client unless 2003 paragraph (c) applies; (b) once every quarter unless paragraphs (a) or (c) applies; or (c) monthly where the client’s portfolio includes an uncovered open position in a contingent liability investment. Securities 26 Failure of a licensee to establish and maintain adequate Minor Investment records and internal controls in respect of any mandate Business from a client under which the licensee may control a (Conduct of client’s assets or liabilities in connection with securities Business) investment business. Regulations, 2003 Securities 27 Failure of a licensee to ensure that it secures adequate Serious Investment protection for assets belonging to a client when it is Business accountable for them, in accordance with Part V and (Conduct of any guidance issued by the Authority. Business) Regulations, 2003 Securities 28 Failure of a licensee to ensure that it maintains Minor Investment adequate records to enable it to meet any future Business obligations including the return of equivalent assets to (Conduct of the client where it holds assets as collateral and has Business) exercised any associated rights to treat the assets as Regulations, its own. 2003 c Revised as at 31st December, 2021 Page 185 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 29 Failure of a licensee to ensure that where assets Minor Investment belonging to a client are held with a custodian, the Business custodian’s records show clearly that the assets belong (Conduct of to one or more clients of the licensee. Business) Regulations, 2003 Securities 30 Failure of a licensee to effect appropriate registration or Serious Investment recording of legal title to client assets in the name of — Business (a) the client; (Conduct of (b) a nominee company; or Business) (c) a custodian, where the licensee has Regulations, notified the client in writing, or the licensee, 2003 where the licensee has obtained the prior written consent of a private client, or in the case of a professional client or a market counterparty, has notified the client, in the case where the asset is subject to the law or market practice of a jurisdiction outside the Islands and the licensee has taken reasonable steps to determine that it is in the best interests of the client to register or record it in that way or that it is not feasible to do otherwise, having regard to the applicable law or market practice, or (d) any other person, at the written direction of the client, provided that in the case of a private client, that other person is not a company within the same group of companies as the licensee. Securities 31 Failure of a licensee or a custodian to have physical Serious Investment possession of any documents of title. Business (Conduct of Failure of a licensee to have physical possession the Business) documents of title in accordance with the written Regulations, instructions of a market counterparty or professional 2003 client. Securities 32 A licensee engaging in stock lending activity with or for Serious Investment a private client or professional client where the activity Business is not covered in the client agreement under regulation Page 186 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (Conduct of 17. Business) Regulations, 2003 Securities 33 Failure of a licensee to, not less than once every 5 Minor Investment weeks, or with the permission of the Authority, not less Business than once every six months, perform a reconciliation of (Conduct of its records of client assets for which it is accountable Business) but which are not in the licensee’s physical custody, Regulations, with statements obtained from custodians or other 2003 persons responsible for maintain records of legal entitlement. Securities 34 Failure of a licensee to, not less than once every six Minor Investment months, carry out — Business (a) a count of all client assets it (or a nominee (Conduct of company or group company) physically Business) holds and a reconciliation with its records Regulations, of such holdings; or 2003 (b) a reconciliation between the licensee’s (or a nominee company’s or group company’s) records of holdings of client assets and the records of the location of such holdings. Securities 35 Failure of a licensee to promptly correct any Serious Investment discrepancies revealed by the reconciliations and make Business good, or provide the equivalent of, any unreconciled (Conduct of shortfall for which there are reasonable grounds for Business) concluding that the licensee is responsible. Regulations, 2003 Securities 36 1. Failure of a licensee to, as often as necessary or on Minor Investment at least one date during its financial year and not Business less than six months after the previous statement (Conduct of date, provide all active clients within five weeks of Business) the date as at which the statement is made with a Regulations, statement listing all client assets for which the 2003 licensee is accountable. 2. Failure of a licensee to ensure that a statement c Revised as at 31st December, 2021 Page 187 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule under sub-regulation (1) — (a) identifies assets registered in the client’s own name separately from those registered otherwise; (b) identifies separately any client assets that are being used as collateral; (c) shows the market value as at the statement date of any collateral held; or (d) in respect of a private client, bases the statement on either the trade date or the settlement date and notifies the client which basis has been used. Securities 37 Failure of a licensee to secure the proper accounting for Very serious Investment and handling of client money. Business (Conduct of Business) Regulations, 2003 Securities 39 Failure of a licensee which receives client money to Minor Investment either — Business (a) pay it as soon as possible and in any event (Conduct of no later than the next business day after Business) receipt, into a client bank account; or Regulations, (b) pay it out in accordance with regulation 46, 2003 in order to comply with section 10. Securities 40(1) Failure of a licensee to, subject to regulation 42, ensure Serious Investment that client money is held at all times in a client bank Business account with one or more approved banks. (Conduct of Business) Regulations, 2003 Securities 40(2) Failure of a licensee to, no less than once in each Serious Investment financial year, take reasonable steps to confirm that the Business bank or banks used for client bank accounts remain (Conduct of appropriate for that purpose in accordance with the Business) relevant guidance issued by the Authority. Regulations, Page 188 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 2003 Securities 41(1) Failure of a licensee that holds or intends to hold client Serious Investment money with an approved bank that is a group company Business to disclose this fact to the client in writing, together with (Conduct of the name of the bank, and comply with regulation 40(2). Business) Regulations, 2003 Securities 41(2) Failure of a licensee to either — Serious Investment (a) deposit the client’s money with another Business approved bank; or (Conduct of (b) return the client’s money to, or to the order Business) of, the client, Regulations, where the client gives written notification to a licensee 2003 that the client does not want the client’s money to be held with an approved bank that is a group company. Securities 42 Failure of a licensee to notify a private client that the Serious Investment private client’s money may be held or controlled by a Business securities investment business intermediary. (Conduct of Business) Regulations, 2003 Securities 43 Failure of a licensee to ensure that the approved bank Minor Investment at which client money is held confirms to the licensee Business by means of provisions in the approved bank’s custody (Conduct of agreement with the licensee, mandate provisions or Business) otherwise in writing that — Regulations, (a) it understands that all money in any client 2003 bank account of a licensee is held by the licensee as trustee; and (b) the bank is not entitled to combine any money in such account with any other account of the licensee or to exercise any right of lien, set-off or counterclaim against money in a client bank account in respect of any debt owed by the licensee. Securities 44 Failure of a licensee to, in respect of each business day, Serious c Revised as at 31st December, 2021 Page 189 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Investment ensure that the aggregate balance on its client bank Business accounts is, by the close of business that day, at least (Conduct of equal to the client money requirement as defined in Business) guidance issued by the Authority, as at the close of Regulations, business of the previous business day and ensure 2003 that — (a) any shortfall is paid into a client bank account by the close of business on the day the calculation is performed; or (b) any excess is withdrawn within the same time period. Securities 45(1) Failure of a licensee to, as often as is necessary to Minor Investment ensure the accuracy of its records, and at least once in Business every five weeks, perform reconciliations on — (Conduct of (a) the balance on each client bank account as Business) recorded by the licensee with the balance Regulations, on that account as recorded by the 2003 approved bank with which those accounts are held; (b) the balance, currency by currency, on each client transaction account with securities investment business intermediaries as recorded by the licensee, with the balance as recorded by the intermediaries; or (c) its records of collateral received from clients within ten business days of the date to which the reconciliation relates. Securities 45(2) Failure of a licensee to correct any discrepancy which Serious Investment arises in any of the reconciliations in subsection (1), as Business soon as possible, unless the discrepancy arises solely (Conduct of as a result of timing differences between the accounting Business) systems of the approved bank or securities investment Regulations, business intermediary and those of the licensee. 2003 Securities 45(3) Failure of a licensee to cover the shortfall, for the period Serious Investment that a discrepancy remains unsolved where one set of Business records involved in the reconciliation indicates a (Conduct of shortfall in client money balances. Business) Regulations, 2003 Page 190 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule 35 - Securities Investment Business (EU Connected Fund (Alternative Investment Fund Managers Directive)) Regulations 35. SECURITIES INVESTMENT BUSINESS (EU CONNECTED FUND (ALTERNATIVE INVESTMENT FUND MANAGERS DIRECTIVE)) REGULATIONS, 2016 Securities 3(1) Failure of a person who is required to make a Serious Investment notification to the Authority pursuant to section 5(2) or Business (EU 5(2A) of the Securities Investment Business Act (2020 Connected Revision) and — Fund (a) is not a licensee and who is an EU (Alternative Connected Manager who is not a person Investment who carries on or purports to carry on Fund Managers securities investment business in relation Directive)) to any of the activities set out in paragraph Regulations, 7 of Schedule 2 of the Securities 2016 Investment Business Act (2020 Revision); or (b) is a licensee and who is an EU Connected Manager who is not a person who carries on or purports to carry on securities investment business in relation to any of the activities set out in paragraph 7 of Schedule 2 of the Securities Investment Business Act (2020 Revision), to provide to the Authority in the form designated by the Authority, the information set out in paragraphs (aa) to (ff). Securities 3(2) Failure of a person who is required to comply with Serious Investment regulation 3(1) who intends to obtain or who has Business (EU obtained an EU Passport to further provide to the Connected Authority the information set out under paragraphs (a) Fund and (b). (Alternative Investment Fund Managers Directive)) Regulations, 2016 c Revised as at 31st December, 2021 Page 191 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 4(1) Failure of a person who has complied with regulation 3 Serious Investment to, for each EU Connected Fund in relation to which the Business (EU activities in paragraphs 5 or 6 of Schedule 2 of the Connected Securities Investment Business Act (2020 Revision) are Fund carried on, provide the Authority with the information set (Alternative out under paragraphs (a) to (d). Investment Fund Managers Directive)) Regulations, 2016 Securities 4(2) Failure of a person who complies with regulation 4(1) Minor Investment who intends to obtain or who has obtained an EU Business (EU Passport to further provide to the Authority the Connected information set out under paragraphs (a) to (c). Fund (Alternative Investment Fund Managers Directive)) Regulations, 2016 Securities 6(1) Failure of a Cayman Islands AIFM to at all times, Serious Investment maintain such amount of capital that is the greater of — Business (EU (a) the amount of capital and own funds the Connected Cayman Islands AIFM is required to Fund maintain in compliance with the Schedule; (Alternative or Investment (b) the financial resource requirement the Fund Managers Cayman Islands AIFM is required to Directive)) maintain under the Securities Investment Regulations, Business (Financial Requirements and 2016 Standards) Regulations (2003). Securities 6(2) 1. Failure of a Cayman Islands AIFM to notify the Serious Investment Authority forthwith in writing where the Cayman Business (EU Islands AIFM has reason to believe that the Cayman Connected Islands AIFM is in breach of the capital Fund requirements stipulated in paragraph (1) or (Alternative anticipates being in breach within a period of one Page 192 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Investment month. Fund Managers Directive)) 2. Failure of a Cayman Islands AIFM to specify in the Regulations, notice the steps which the Cayman Islands AIFM is 2016 taking or has taken to remedy the breach. Securities 7 Failure of a licensee to inform the Authority in writing Serious Investment within seven days of ceasing to be a Cayman Islands Business (EU AIFM and to submit the following and any other Connected information required by the Authority to amend the Fund licensee’s licence — (Alternative (a) the licensee’s licence certificate; Investment (b) the reason why the licensee is no longer an Fund Managers EU Connected Manager; or Directive)) (c) written confirmation indicating whether the Regulations, EU Connected Funds previously managed 2016 or marketed by the licensee have been wound up or transferred. Securities 8(a) Failure of a licensee to inform the Authority in writing of Serious Investment a change in any of the information provided to the Business (EU Authority pursuant to regulation 3 within seven days. Connected Fund (Alternative Investment Fund Managers Directive)) Regulations, 2016 Securities 8(b) Failure of a licensee to inform the Authority in writing of Serious Investment a change in any of the information provided to the Business (EU Authority pursuant to regulation 4 within twenty-one Connected days. Fund (Alternative Investment Fund Managers Directive)) Regulations, 2016 c Revised as at 31st December, 2021 Page 193 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 8(c) Failure of a licensee to inform the Authority in writing of Serious Investment a change in any of the information provided to the Business (EU Authority upon making a notification under regulation 4, Connected within twenty-one days of commencing activities in Fund respect of the EU Connected Fund. (Alternative Investment Fund Managers Directive)) Regulations, 2016 Securities 8(d) Failure of a licensee to inform the Authority in writing of Serious Investment a change in any of the information provided to the Business (EU Authority immediately upon submitting an application Connected for an EU Passport, the information required at Fund regulation 3(1)(ff) and regulation 4. (Alternative Investment Fund Managers Directive)) Regulations, 2016 Securities 9 Failure of a Cayman Islands AIFM to, within six months Serious Investment of its financial year, provide together with the Business (EU documents required to be submitted to the Authority Connected pursuant to section 13 of the Securities Investment Fund Business Act (2020 Revision) and the Securities (Alternative Investment Business (Financial Requirements and Investment Standards) Regulations, 2003 — Fund Managers (a) a declaration confirming compliance with Directive)) regulations 3, 4 and 8 as at the end of the Regulations, financial year; 2016 (b) evidence of authorisation of the Cayman Islands AIFM from the relevant EU Member State, if applicable; or (c) a declaration that the Cayman Islands AIFM is compliant with all of the requirements of the AIFMD that are applicable to the Cayman Islands AIFM and the requirements of the Cayman Islands AIFM’s Member State of reference under the AIFMD if authorised as an AIFM in a Member State. Page 194 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Securities 10 Failure of a Cayman Islands AIFM to comply at all times Serious Investment with the requirements of the Schedule applicable to the Business (EU Cayman Islands AIFM to the extent required in Connected accordance with the AIFMD. Fund (Alternative Investment Fund Managers Directive)) Regulations, 2016 Securities 13(a) Failure of an EU Connected Manager referred to in Serious Investment regulation 12 to notify the Authority within twenty-one Business (EU days of any change to the information provided under Connected that regulation. Fund (Alternative Investment Fund Managers Directive)) Regulations, 2016 Securities 13(b) Failure of an EU Connected Manager referred to in Serious Investment regulation 12 to notify the Authority within twenty-one Business (EU days of the EU Connected Manager ceasing to be an Connected EU Connected Manager. Fund (Alternative Investment Fund Managers Directive)) Regulations, 2016 Securities 14 Failure of an EU Connected Manager, at all times when Serious Investment requested by the Authority, to provide the Authority with Business (EU all information necessary for the Authority to satisfy Connected itself that the EU Connected Manager is in compliance Fund with the provisions of these Regulations and the AIFMD (Alternative as are applicable to the EU Connected Manager. c Revised as at 31st December, 2021 Page 195 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Investment Fund Managers Directive)) Regulations, 2016 36 - Securities Investment Business (Financial Requirements and Standards) Regulations 36. SECURITIES INVESTMENT BUSINESS (FINANCIAL REQUIREMENTS AND STANDARDS) REGULATIONS, 2003 Securities 4 Failure of a licensee to maintain adequate financial Serious Investment resources to meet its securities investment business Business commitments or to withstand the risk to which its (Financial business is subject. Requirements and Standards) Regulations, 2003 Securities 5 A licensee using a currency other than the Cayman Serious Investment Islands dollar or United States dollar as the licensee’s Business reporting currency without the prior approval of the (Financial Authority. Requirements and Standards) Regulations, 2003 Securities 6 1. Failure of a licensee to — Serious Investment (b) maintain adequate and current accounting Business records; or (Financial (c) maintain internal systems and controls and Requirements risk management processes that are and Standards) adequate for the size, nature and Regulations, complexity of its securities investment 2003 business activities. 2. Failure of a licensee to maintain accounting records Page 196 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule which provide accounting information for any period during the five years immediately preceding the date on which a license was first granted to the licensee by the Authority. Securities 7 Failure of a licensee to perform reconciliations — Serious Investment (a) at least once every five weeks on all Business balances with banks or building societies (Financial and correct any difference forthwith, unless Requirements the difference arises solely as a result of and Standards) identified differences in timing between the Regulations, records of the licensee and the bank or 2003 building society; (b) at least once every five weeks, on all balances and positions with securities investment business intermediaries and correct any differences by agreement with the relevant intermediary on a timely basis; or (c) at least once every business day, on the licensee’s own margin accounts with securities investment business intermediaries and correct any differences by agreement with the relevant intermediary on a timely basis. Securities 8 1. Failure of a licensee to submit to the Authority the Serious Investment documents and supplementary information under Business paragraphs (a) to (c). (Financial Requirements 2. Failure of a licensee to submit the audited accounts and Standards) of each subsidiary and consolidated audited Regulations, accounts, together with the annual audited accounts 2003 of the licensee itself, where the license has a subsidiary or subsidiaries. Securities 9 1. Failure of a licensee to calculate its financial Serious Investment resources and its financial resource requirement in Business accordance with Schedule 1 and any relevant (Financial guidance issued by the Authority under section 12. Requirements and Standards) 2. Failure of a licensee to ensure that the licensee’s Regulations, base requirement in Schedule 1 is greater of one 2003 quarter of relevant annual expenditure and — c Revised as at 31st December, 2021 Page 197 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (d) in the case of broker-dealers, market makers and securities managers, one hundred thousand dollars; or (e) in the case of all other licensees, fifteen thousand dollars. 3. Failure of a licensee to maintain financial resources in excess of its financial resources requirement at all times. Securities 10 Failure of a licensee to — Serious Investment (a) obtain the written consent of the Authority Business before seeking to reduce or change the (Financial nature of its issued capital, or the rights Requirements and obligations of shareholders; and Standards) (b) report to the Authority the acquisition of ten Regulations, per cent or more of the voting shares of 2003 another company; or (c) obtain the prior written consent of the Authority regarding any agreement to sell or merge the whole or any part of the licensee to or with a third party. 37 - Securities Investment Business (Registration and Deregistration) Regulations 37. SECURITIES INVESTMENT BUSINESS (REGISTRATION AND DEREGISTRATION) REGULATIONS, 2019 Securities 2(1) Failure of an applicant for registration as a registered Very Serious Investment person under the Securities Investment Business Act Business (2020 Revision) to submit to the Authority — (Registration (a) the completed application form; and (b) any other information requested by the Deregistration) Authority for the purposes of assessing the Regulations, application; or 2019 (c) the registration fee specified in regulation 9. Securities 3(1) Failure of a registered person that ceases to carry on Serious Investment any regulated activity listed in Schedule 2 of the Page 198 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Business Securities Investment Business Act (2020 Revision) to (Registration apply to the Authority for deregistration in accordance and with regulation 3. Deregistration) Regulations, 2019 Securities 3(2) Failure of an applicant, prior to applying for Serious Investment deregistration, to ensure that — Business (a) the relevant fees are paid; (Registration (b) the applicant’s required annual and declarations have been submitted; or Deregistration) (c) the applicant has no outstanding queries Regulations, from, or regulatory filings with, the 2019 Authority. Securities 3(3) Failure of an applicant for deregistration to submit to the Serious Investment Authority, all or any of the following — Business (a) written notice of the applicant’s intention to (Registration deregister in accordance with section and 5(4B) of the Securities Investment Deregistration) Business Act (2020 Revision); Regulations, (b) the fee for deregistration specified in 2019 regulation 9; (c) a certified copy of the resolution of its senior officers which indicates the date on which the registered person has ceased to carry on, as a business, the relevant regulated activities listed in Schedule 2 of the Securities Investment Business Act (2020 Revision); and (d) an affidavit which is filed in accordance with paragraph (4). Securities 3(4) Failure of a senior officer of the applicant for Serious Investment deregistration to file an affidavit for, or on behalf of, the Business applicant, that attests to the following — (Registration (a) the reason for the cessation of business; and (b) that, as far as the senior officer is aware, Deregistration) the applicant has operated in accordance Regulations, with its articles or other constitutional 2019 documents; (c) that all client relationships have been properly terminated or transferred to c Revised as at 31st December, 2021 Page 199 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule another service provider; (d) that the applicant has not conducted its securities investment business and has not wound up such business in a manner that is prejudicial to its clients and creditors; and (e) that the applicant intends either — (i) to continue as a legal entity in the Islands; (ii) to apply to be struck-off from the relevant register by the respective Registrar in the Islands; or (iii) to merge with another registered person. Securities 4 1. Failure of a registered person that ceases to carry Serious Investment on securities investment business due to the Business commencement of voluntary liquidation of the (Registration registered person to apply to the Authority for and deregistration. Deregistration) Regulations, 2. Failure of a registered person that ceases to carry 2019 on securities investment business due to the commencement of voluntary liquidation of the registered person to provide the following to the Authority — (a) notice of voluntary winding up of the registered person (Form No. 19 of the Companies Winding Up Rules, 2018); (b) voluntary liquidator’s consent to act (Form No. 20 of the Companies Winding Up Rules, 2018); or (c) a declaration of solvency (Form No. 21 of the Companies Winding Up Rules, 2018). Securities 5 1. Failure of a registered person that ceases to carry Serious Investment on securities investment business due to the court Business supervised or appointed liquidation of the registered (Registration person to apply to the Authority for deregistration. and Deregistration) 2. Failure of a registered person that ceases to carry Regulations, on securities investment business due to the court 2019 supervised or appointed liquidation of the registered person to provide to the Authority a certified copy of Page 200 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule the supervision or winding up order issued by the Grand Court. Securities 6(1) 1. Failure of a registered person that ceases to carry Serious Investment on securities investment business in the Islands by Business reason of its intended merger with another (Registration registered person to apply to the Authority for and deregistration. Deregistration) Regulations, 2. Failure of a registered person that ceases to carry 2019 on securities investment business in the Islands by reason of its intended merger with another registered person to provide any or all of the following to the Authority — (a) an application to the Authority for prior approval of the merger which is accompanied by — (i) resolutions of the merging and surviving parties; or (ii) the plan of merger and appendices; or (b) such other documents as the Authority may specify. Securities 6(2) Where the Authority approves the application referred Minor Investment to in paragraph (1)(a), failure of the surviving registered Business person, upon the merger becoming effective, to provide (Registration to the Authority a certified copy of the certificate of and merger within seven days of its issuance. Deregistration) Regulations, 2019 Securities 7 Failure of a registered person that ceases to carry on Serious Investment securities investment business in the Islands by reason Business of the transfer of its legal entity to another jurisdiction to (Registration apply for deregistration in accordance with paragraph and (2). Deregistration) Regulations, 2019 Securities 8(1) Failure of a registered person that has never carried on Serious c Revised as at 31st December, 2021 Page 201 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Investment business as a registered person to apply for Business deregistration in accordance with paragraph (2). (Registration and Deregistration) Regulations, 2019 Securities 9(1) Failure of an applicant for registration as a registered Minor Investment person under the Securities Investment Business Act Business (2020 Revision) to pay the prescribed registration fee to (Registration the Authority. and Deregistration) Regulations, 2019 Securities 9(2) Failure of a registered person to pay the prescribed Minor Investment annual fee to the Authority. Business (Registration and Deregistration) Regulations, 2019 Securities 9(3) Failure of a registered person that seeks to deregister Minor”. Investment a securities investment business to pay the prescribed Business deregistration fee to the Authority. (Registration and Deregistration) Regulations, 2019 38 - Virtual Assets (Service Providers) Act 38. Virtual Assets (Service Providers) Act (2022 Revision) Virtual Asset 4(1)(a) Subject to sections 4(2) and 4(3), a person carrying Very serious (Service on or purporting to carry on, virtual asset service in or Providers) Act (2022 Page 202 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Revision) from within the Islands where the person is not a registered person in accordance with this Act. Virtual Asset 4(2) A natural person carrying on, or purporting to carry on, Very serious (Service in or from within the Islands virtual asset service as a Providers) Act business or in the course of business. (2022 Revision) Virtual Asset 5(5) 1. Failure of a registered person to pay the Minor (Service prescribed renewal fee on or before 15th January Providers) Act in each year. (2022 Revision) 2. Failure of a registered person who does not pay the prescribed renewal fee on or before the 15th day of January in each year, to pay the surcharge of one-twelfth of that fee for every month, or part of a month, after 15th January in each year that the fee is not paid. Virtual Asset 6(1)(a) Subject to section 6(3), failure of a person who is not Very serious (Service an existing licensee to apply to be a registered person Providers) Act under the Virtual Asset (Service Providers) Act (2022 (2022 Revision), where the person at the commencement of Revision) the Virtual Asset (Service Providers) Act, 2020 [Law 14 of 2020] is carrying on virtual asset service for which a licence is required under the Virtual Asset (Service Providers) Act (2022 Revision). Virtual Asset 6(5) Failure of a registered person to notify the Authority Very serious (Service within fifteen days of any changes to the information Providers) Act provided under section 6(1) that occurs after (2022 submission of the application. Revision) Virtual Asset 6(7) A registered person publicly stating, implying or Very serious (Service conveying that it is licensed or regulated in the Providers) Act Islands. (2022 Revision) Virtual Asset 9(1) Failure of a virtual asset service provider to provide at Very serious (Service its expense, an auditor’s report, prepared by an Providers) Act independent auditor, on the anti-money laundering (2022 systems and procedures for compliance with the Anti- Revision) Money Laundering Regulations (2020 Revision), where required to do so by the Authority. c Revised as at 31st December, 2021 Page 203 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Virtual Asset 9(2) 1. Failure of a virtual asset service provider to Very serious (Service prepare accounts annually. Providers) Act (2022 2. Failure of a virtual asset service provider to make Revision) its accounts available for inspection upon request by the Authority at the registered office at such reasonable time as the Authority may specify. Virtual Asset 9(3) Failure of a virtual asset service provider to — Very serious (Service (a) ensure that — Providers) Act (i) its senior officers and trustees are fit (2022 and proper persons to hold the Revision) respective positions; and (ii) its beneficial owners are fit and proper persons to have such control or ownership; (b) take such steps as may be necessary to protect and secure the personal data and virtual assets of its clients; (c) ensure that all communications relating to the virtual asset service are accurate; (d) comply with the Anti-Money Laundering Regulations (2020 Revision) and other laws relating to the combating of money laundering, terrorist financing and proliferation financing; (e) for the purpose of ensuring compliance with the Anti-Money Laundering Regulations (2020 Revision), put in place anti-money laundering systems and procedures; or (f) designate an employee as the officer with responsibility for the procedures for combating money laundering, terrorist financing and proliferation financing. Virtual Asset 9(4) Failure of a virtual asset service provider to — Very serious (Service (a) have a registered office in the Islands; Providers) Act (b) provide documents, statements or such (2022 other information that may be required by Revision) the Authority to enable it to properly perform any of its functions under the Law; Page 204 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (c) notify the Authority of — (i) any licence or registration in another jurisdiction; (ii) the opening of an office or establishing a physical presence in another jurisdiction; (iii) any penalties that are imposed or enforcement actions taken against it in another jurisdiction; or (iv) the holding of, or the acquisition of, a controlling interest in another person or legal arrangement engaged in virtual asset service; or (d) provide such other information as may be specified by the Authority. Virtual Asset 9(5) 1. Failure of a virtual asset service provider, when Very serious (Service performing a transfer of virtual assets, to collect Providers) Act and maintain information on the beneficiary and (2022 originator of the transfer in accordance with the Revision) Anti-Money Laundering Regulations (2020 Revision) and any additional information specified by the Authority, for all transfers performed and to comply with any other requirements outlined therein. 2. Failure of a virtual asset service provider to ensure that its records that are collected and maintained are made available, at the request of the Authority or any competent authority, through its registered office. 3. Failure of a virtual asset service provider to provide to the Authority or any competent authority the information requested under section 9(5)(a) within forty-eight hours of receipt of the request. Virtual Asset 9(8) A virtual asset service provider appointing — Very serious (Service (a) a senior officer or trustee; or Providers) Act (b) an anti-money laundering compliance (2022 officer, Revision) without the prior approval of the Authority. c Revised as at 31st December, 2021 Page 205 SCHEDULE 1 Monetary Authority (Administrative Fines) Regulations (2022 Revision) Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule Virtual Asset 15(1) Failure of an existing licensee who wishes to carry on Serious (Service virtual asset service to notify the Authority, in the Providers) Act manner specified by the Authority, advising of the (2022 nature and scope of the virtual asset service that the Revision) existing licensee wishes to carry on. Virtual Asset 24(3) A person knowingly or recklessly providing any Very serious (Service information to the Authority which is false or Providers) Act misleading in a material respect. (2022 Revision) Virtual Asset 25(2)(b) A virtual asset service provider carrying on business Very serious (Service fraudulently or otherwise in a manner detrimental to Providers) Act the public interest, to the interest of its clients or to the (2022 interest of its creditors. Revision) Virtual Asset 25(2)(c) A virtual asset service provider contravening any Very serious (Service provision of the Virtual Asset (Service Providers) Act Providers) Act (2022 Revision), or of any regulations made under the (2022 Virtual Asset (Service Providers) Act (2022 Revision) Revision) or of the Anti-Money Laundering Regulations (2020 Revision). Virtual Asset 25(2)(d) Failure of a virtual asset service provider to comply Very serious (Service with a condition of its licence and registration. Providers) Act (2022 Revision) Virtual Asset 25(2)(e) Failure of virtual asset service provider to conduct the Very serious (Service direction and management of its business in a fit and Providers) Act proper manner. (2022 Revision) Virtual Asset 25(2)(f) A virtual asset service provider having senior officers, Very serious (Service trustees or persons who have acquired ownership or Providers) Act control who are not fit and proper persons. (2022 Revision) Virtual Asset 25(2)(g) A virtual asset service provider which is a “corporate Very serious (Service services provider”, as defined in — Providers) Act (a) Part XVIIA of the Companies Act (2022 (2022 Revision); Revision) Page 206 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 1 Column 1 Column 2 Column 3 Column 4 Title of Act, Prescribed Description of breach Category of Regulation or provision breach Rule (b) Part 12 of the Limited Liability Companies Act (2021 Revision); or (c) Part 8 of the Limited Liability Partnership Act (2021 Revision), contravening Part XVIIA of the Companies Act (2022 Revision), Part 12 of the Limited Liability Companies Act (2021 Revision) or Part 8 of the Limited Liability Partnership Act (2021 Revision). Virtual Asset 28(1) 1.

A virtual asset service provider issuing shares Serious (Service totalling ten per cent or more of the total shares Providers) Act in a company which is a virtual asset service (2022 provider under the Virtual Asset (Service Revision) Providers) Act (2022 Revision), without the prior approval of the Authority. 2. A person or a virtual asset service provider voluntarily transferring or disposing of issued shares or interests without the prior approval of the Authority. Virtual Asset 28(3) Failure of a virtual asset service provider to provide Serious (Service such information to the Authority, and within the Providers) Act specific time as the Authority may require, for the (2022 purpose of assessing whether persons acquiring Revision) control or ownership of such shares or partnership interest in accordance with section 28(1) or (2) as the case may be, are fit and proper persons to have such control or ownership. Virtual Asset 28(5) Failure of a company or partnership to inform the Serious (Service Authority of the number of shares or interests and the Providers) Act identity of the person in whom the shares or interests (2022 have vested as soon as it becomes aware that shares Revision) in a company or the interests in a partnership which is a virtual asset service provider have been vested involuntarily or through process of law in a person. c Revised as at 31st December, 2021 Page 207 SCHEDULE 2 Monetary Authority (Administrative Fines) Regulations (2022 Revision) SCHEDULE 2 PRESCRIBED FORMS (regulations 8 and 10) PART 1 - BREACH AND FINE NOTICES FORM 1 BREACH NOTICE FOR PROPOSED FIXED FINE Monetary Authority Act (2020 Revision), ss 42A and 42B Monetary Authority (Administrative Fines) Regulations (2022 Revison) To: [Here insert the party’s name and address] (“you”). At [delete whichever of the following is not applicable]: [Here insert the party’s physical address. OR Here insert the party’s email for notices from the Authority to the party under regulation 28.] TAKE NOTICE that the Cayman Islands Monetary Authority proposes to impose a fixed fine of five thousand dollars on you. Particulars are as follows: • The relevant prescribed provision is: [Here insert the prescribed provision from column 2 in Schedule 1 that the Authority believes has been breached and the full citation of the primary law.] • The facts and circumstances the Authority believes constituted the breach are: Page 208 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) FORM 1 [Here insert the facts and circumstances contended to constitute the breach and any relevant surrounding circumstances.] • The amount of five thousand dollars is fixed under s 42B(1) of the Monetary Authority Act (2020 Revision). AND TAKE FURTHER NOTICE that, within [Here insert “30 days” OR “any longer period the Authority decides] after the giving of this notice to you, you may give the Authority a rectification notice or a notice making representations about whether it should impose the fine. Dated ______________________, 20_____. ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority c Revised as at 31st December, 2021 Page 209 FORM 2 Monetary Authority (Administrative Fines) Regulations (2022 Revision) FORM 2 BREACH NOTICE FOR PROPOSED DISCRETIONARY FINE Monetary Authority Act (2020 Revision), ss 42A and 42B Monetary Authority (Administrative Fines) Regulations (2022 Revision) To: [Here insert the party’s name and address] (“you”). At [delete whichever of the following is not applicable]: [Here insert the party’s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] TAKE NOTICE that the Cayman Islands Monetary Authority proposes to impose a discretionary fine of [Here insert the amount of the proposed fine.] on you. Particulars are as follows: • The relevant prescribed provision is: [Here insert the prescribed provision from column 2 in Schedule 1 that the Authority believes has been breached and the full citation of the primary law.] • The facts and circumstances the Authority believes constituted the breach are: [Here insert the facts and circumstances contended to constitute the breach and any relevant surrounding circumstances.] AND TAKE FURTHER NOTICE that within [Here insert “30 days” OR “any longer period the Authority decides] after the giving of this notice to you, you may give the Authority a notice making representations about whether it should impose the fine, the proposed amount of the fine, or both. Dated ______________________, 20_____. ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority Page 210 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) FORM 3 FORM 3 FINE NOTICE FOR FIXED FINE Monetary Authority Act (2020 Revision), ss 42A and 42B Monetary Authority (Administrative Fines) Regulations (2022 Revision) To: [Here insert the party’s name and address] (“you”). At [delete whichever of the following is not applicable]: [Here insert the party’s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] TAKE NOTICE that the Cayman Islands Monetary Authority has imposed a fixed fine of five thousand dollars on you. You are required to pay the fine [Here insert “immediately” or, if the Authority has decided to give time to pay, the period within which the fine is required to be paid.] Particulars are as follows: • The relevant prescribed provision is: [Here insert the prescribed provision from column 2 in Schedule 1 that the Authority believes has been breached and the full citation of the primary law.] • The reasons for the decision to impose the fine are [delete whichever of the following is not applicable]: [Here insert: (a) If no reply to the relevant breach notice was given during the reply period: “the reply period has ended, the Authority still holds the belief stated in the relevant breach notice and that, consequentially, s 42B of the Act and regulation14(2) of the Regulations requires the fine to be imposed”. c Revised as at 31st December, 2021 Page 211 FORM 3 Monetary Authority (Administrative Fines) Regulations (2022 Revision) OR (b) if such a reply was given, the Authority’s findings on each matter raised in the reply that is relevant to the issue of whether a fine should be imposed.] AND TAKE FURTHER NOTICE of the following under the Act and Regulations: • Under s 42B(1), the amount of the fine is fixed at five thousand dollars. • Under regulation 13 you may, within 30 days after receiving this notice, issue a rectification notice to the Authority if you have rectified the breach specified in this notice within that period. • Under Part 4 of the Regulations you may, within 30 days after receiving this notice, apply to the Authority’s Management Committee to review the decision to impose the fine. However, you cannot apply for a review of the amount of the fine. • Form 6 under Schedule 2 to the Regulations is to be used for any such application. • Compound interest accrues on the fine at daily rests until all of the fine and the interest have been paid. • The Authority may enforce the fine and interest as a debt. • Under s 42B, the Authority may also impose further fines on you of up to twenty thousand dollars in total if the fine is not paid and the breach does not stop or is not remedied. Dated ______________________, 20_____. ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority Page 212 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) FORM 4 FORM 4 FINE NOTICE FOR FIXED FINE (CONTINUING) Monetary Authority Act (2020 Revision), ss 42A and 42B Monetary Authority (Administrative Fines) Regulations (2022 Revision) To: [Here insert the party’s name and address] (“you”). At [delete whichever of the following is not applicable]: [Here insert the party’s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] TAKE NOTICE that the Cayman Islands Monetary Authority has imposed a fixed fine (continuing) of five thousand dollars (“this fine”) on you. You are required to pay this fine [Here insert “immediately” or, if the Authority has decided to give time to pay, the period within which this fine is required to be paid.] Particulars are as follows: • This fine relates to a fine notice for a fixed fine (primary) given to you that was dated [Here insert date of the relevant fixed fine and, if more than 2 were given on that day, otherwise identify that fine.]. • The reason for imposing this fine is that the ground under s 42B(2) of the Act for imposing this fine exists, namely that: (a) the breach for which the fixed fine was imposed has not stopped and has not been remedied; and (b) the fine imposed by the fixed fine (and any previous fixed fines (continuing) imposed for the fixed fine) have not been paid. AND TAKE FURTHER NOTICE of the following under the Act and Regulations: • Under s 42B(2), the amount of this fine is fixed at five thousand dollars. c Revised as at 31st December, 2021 Page 213 FORM 4 Monetary Authority (Administrative Fines) Regulations (2022 Revision) • Under Part 4 of the Regulations you may, within 30 days after receiving this notice, apply to the Authority’s Management Committee to review the decision to impose the fine. However, you cannot apply for a review of the amount of this fine. • Form 6 under Schedule 2 to the Regulations is to be used for any such application. • Compound interest accrues on this fine at daily rests until all of this fine and the interest have been paid. • The Authority may enforce this fine and the interest against you as a debt. Dated ______________________, 20_____. ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority Page 214 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) FORM 5 FORM 5 FINE NOTICE FOR DISCRETIONARY FINE Monetary Authority Act (2020 Revision), ss 42A and 42B Monetary Authority (Administrative Fines) Regulations (2022 Revision) To: [Here insert the party’s name and address] (“you”). At [delete whichever of the following is not applicable]: [Here insert the party’s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] TAKE NOTICE that the Cayman Islands Monetary Authority has imposed a discretionary fine of [Here insert the amount of the discretionary fine.] on you. You are required to pay the fine [Here insert “immediately” or, if the Authority has decided to give time to pay, the period within which the fine is required to be paid.] Particulars are as follows: • The relevant prescribed provision is: [Here insert the prescribed provision from column 2 in Schedule 1 that the Authority believes has been breached and the full citation of the primary law.] • The reasons for the decision to impose the fine are: [Here insert the reasons. Also, if a reply was given to the relevant breach notice (if any) during the reply period, also insert the Authority’s findings on each matter raised in the reply that addressed the issue of whether a fine should be imposed.] • The reasons for the amount of the fine are: c Revised as at 31st December, 2021 Page 215 FORM 5 Monetary Authority (Administrative Fines) Regulations (2022 Revision) [Here insert the reasons. Also, if a reply addressed the issue of the amount, also insert the Authority’s findings on each relevant matter raised in the reply.] AND TAKE FURTHER NOTICE of the following under the Act and Regulations: • Under Part 4 of the Regulations you may within 30 days after receiving this notice, apply to the Grand Court for leave to appeal against the decision to impose the fine or its amount, or both. [Omit this paragraph if the party entered into a discount agreement for the breach and the fine is no more than the amount agreed under the agreement.] • Compound interest accrues on the fine at daily rests until all of the fine and the interest have been paid. • The Authority may enforce the fine and interest as a debt. Dated ______________________, 20_____. ______________________________________________________ Signed on behalf of the Cayman Islands Monetary Authority Page 216 Revised as at 31st December, 2021 c PART 2 - REVIEWS AND Monetary Authority (Administrative Fines) Regulations (2022 Revision) APPEALS PART 2 - REVIEWS AND APPEALS FORM 6 APPLICATION TO REVIEW FIXED FINE The Monetary Authority (Administrative Fines) Regulations (2022 Revision) To: the Cayman Islands Monetary Authority At [delete whichever of the following is not applicable]: [Here insert the Authority’s physical address. OR If the Authority has accepted the sending of applications to review fixed fines at a particular email address, here insert that address.] TAKE NOTICE that, under regulation 16, the following party applies to the Authority’s Management Committee for that committee to review the decision to impose the fixed fine imposed by the fine notice received by the party on [Here insert date the notice was received and, if more than 2 were given on that day, otherwise identify the fine.]. Party’s full name: [Here insert the party’s full name] The party’s physical address is: [Here insert the party’s physical address] The party’s email address for notices from the Authority to the party is [Here insert the party’s email address] Particulars about the application are as follows: • The relevant prescribed provision set out in the fine notice is: [Here insert the prescribed provision as per the fine notice.] • The grounds on which the party relies on for the review are: c Revised as at 31st December, 2021 Page 217 FORM 6 Monetary Authority (Administrative Fines) Regulations (2022 Revision) [Here insert fully the grounds relied on.] • The facts and circumstances that the party relies on for the grounds are: [Here insert the facts and circumstances relied on, including those contended to be different from those set out in the relevant breach notice and any relevant surrounding circumstances.] Dated ______________________, 20_____. ______________________________________________________ Signed on behalf of the Party ______________________________________________________ Position with the party (If the party is not an individual) Page 218 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) FORM 7 FORM 7 REVIEW DECISION FOR FIXED FINE The Monetary Authority (Administrative Fines) Regulations (2022 Revision) To: Party’s full name: [Here insert the party’s full name] To: [Here insert the party’s name and address] (“you”). At [delete whichever of the following is not applicable]: [Here insert the party’s physical address. OR Here insert any email address under regulation28 for notices from the Authority to the party.] Date of relevant fixed fine: [Here insert the date of relevant fixed fine and, if more than 2 were given on that day, otherwise identify that fine.]. TAKE NOTICE that the Authority’s Management Committee has reconsidered the decision to impose the fine and decided to [affirm the decision OR set the decision aside. (delete whichever is not applicable)]. [Omit the following 2 paragraphs if the review decision is to set aside.] The Committee’s findings on each ground on which the review was sought and its reasons for each finding are: [Here insert the findings on each ground and the reasons for each finding.] Dated ______________________, 20_____. ______________________________________________________ Signed on behalf of the Management Committee of the Cayman Islands Monetary Authority c Revised as at 31st December, 2021 Page 219 PART 3 - ENFORCEMENT Monetary Authority (Administrative Fines) Regulations (2022 Revision) PART 3 - ENFORCEMENT FORM 8 CERTIFICATE OF FINE AND INTEREST OWING Monetary Authority Act (2020 Revision) Monetary Authority (Administrative Fines) Regulations (2022 Revision) I certify as follows under regulation 30(3)(d) — 1. I am the managing director/acting managing director [delete whichever is not applicable] under s 13 of the Act of the Cayman Islands Monetary Authority, having been duly appointed under s 13 of the Monetary Authority Act (2020 Revision). 2. The following fine and interest on it are owing to the Crown under the Act and Regulations: Debtor: [Here insert party’s name as per the fine notice] Amount of fine: [Here insert amount of fine] Due date: [Here insert the day the fine was required to be paid under the relevant fine notice] Interest to date: [Here insert the amount of interest, worked out under regulation 25]. Total of fine and interest: [Here insert the total amount of the fine and interest]. 3. Annexed and marked with the letter “A” is a true copy of the fine notice that imposed the fine, given to the debtor. 4. The fine has not been stayed. Dated ______________________, 20_____. ______________________________________________________ Signature ______________________________________________________ Full name Page 220 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) FORM 8 Managing Director/Managing Director’s delegate [delete whichever is not applicable] under s 13 of the Cayman Islands Monetary Authority Act (2020 Revision). Publication in consolidated and revised form authorised by the Cabinet this 11th day of January, 2022. Kim Bullings Clerk of the Cabinet. c Revised as at 31st December, 2021 Page 221 Monetary Authority (Administrative Fines) Regulations (2022 Revision) ENDNOTES ENDNOTES Table of Legislation history: SL # Law/Act # Legislation Commencement Gazette 162/2020 Monetary Authority (Administrative Fines) (Amendment) 9-Dec-2020 LG90/2020/s1 (No. 3) Regulations, 2020 56/2020 Citation of Acts of Parliament Act, 2020 3-Dec-2020 LG89/2020/s1 133/2020 Monetary Authority (Administrative Fines) (Amendment) 28-Oct-2020 LG80/2020/s1 (No. 2) Regulations, 2020 86/2020 Monetary Authority (Administrative Fines) (Amendment) 26-Jun-2020 LG47/2020/s3 Regulations, 2020 13/2018 Monetary Authority (Administrative Fines) (Amendment) 14-Mar-2018 GE21/2018/s1 Regulations, 2018 98/2017 Monetary Authority (Administrative Fines) Regulations, 15-Dec-2017 GE106/2017/s2 2017 c Revised as at 31st December, 2021 Page 223 ENDNOTES Monetary Authority (Administrative Fines) Regulations (2022 Revision) Page 224 Revised as at 31st December, 2021 c Monetary Authority (Administrative Fines) Regulations (2022 Revision) ENDNOTES c Revised as at 31st December, 2021 Page 225 ENDNOTES Monetary Authority (Administrative Fines) Regulations (2022 Revision) (Price: $45.60) Page 226 Revised as at 31st December, 2021 c