Friday, April 16, 2010BVI Modernises Mutual Funds Business

BVI FSCBVI Changes Regulatory Regime For Investment Business

The British Virgin Islands Financial Services Commission (FSC) is pleased by the recent enactment of the Securities and Investment Business Act, 2010 (SIBA). SIBA represents the most significant change to the regulatory regime for investment business in the Territory since the Mutual Funds Act, 1996.

Modernising the mutual funds and investment business regimes and developing appropriate legislative provisions in relation to securities business while addressing current and emerging international standards of regulation was the objective of SIBA’s introduction.
The regulation and administration of hedge funds and securities business in the British Virgin Islands has been a major priority for the Government of the British Virgin Islands and the FSC. The enactment of SIBA marks a significant step forward for investment business in the Territory and further bolsters the overall regulatory regime in the British Virgin Islands.

SIBA’s enactment will not significantly alter existing fund business and it contains appropriate transitional provisions, including time lines for existing licensees to become fully compliant. SIBA will however, transform the Territory’s regulatory approach to investment business by creating an overarching piece of legislation to govern investment business activities.

Brodrick Penn, the Director, Investment Business at the FSC noted that, “The new Act signals the maturity and growth of the jurisdiction beyond that of a fund only jurisdiction as it ushers in new laws and rules for areas such as public issues and securities intermediation activities. It reinforces the British Virgin Islands’ commitment to developing a prudent regulatory regime for investment business including fund activities which are consistent and compliant with international standards and balance the commercial interests of the BVI.”

The FSC worked tirelessly and diligently to ensure that the public and private sector were extensively consulted prior to the enactment of SIBA.
The enactment was subjected to a thorough consultative process including focus groups and technical workshops. The FSC also reviewed and analysed numerous written comments from the Industry which helped to shape the Act.

The FSC wishes to acknowledge the comments and contributions of its focus groups and the industry participants in general. As the FSC begins the administration of the Act and its subsidiary legislation, it looks forward to and encourages continued, constructive partnerships as it values and benefits from an active consultative process

Following the required administrative procedures and publication in the Virgin Islands Official Gazette, a full copy of SIBA will be available on the Commission’s website, www.bvifsc.vg.

About the British Virgin Islands Financial Services Commission

The BVI Financial Services Commission is an autonomous regulatory agency responsible for the regulation and supervision of financial services conducted in and from within the Territory. The Registry of Corporate Affairs is a division within the BVI Financial Services Commission that administers the BVI Business Companies Act.

Oyster Publications Inc, PO box 3369, Road Town Tortola, British Virgin Islands, VG1110