Recent Changes to Financial Services Regulatory Legislation in the British Virgin Islands

The British Virgin Islands (BVI) Financial Services Commission (FSC) has issued updates on recent changes to financial services regulatory legislation. This article provides an overview of the key points, including updates to definitions, other amendments, public statements, and holiday and closure dates.

Updates to Definitions

The FSC has updated the definition of “controlling interest” to include:

• More than 50% voting rights
• Significant influence, even if not amounting to 50% of voting rights
• Influence over a licensee’s activities, even without a significant interest
• Giving instructions to a director or senior officer that are usually acted upon

Other Updates

The Companies Management Act (CMA) has been amended to:

• Capture the formation and continuation of partnerships in the BVI
• Include the provision of directors, partners, officers, and similar positions for VI companies or partnerships
• Require applicants for a license to demonstrate capital resources of not less than the prescribed minimum

Public Statements

The FSC has issued public statements warning against solicitations from unlicensed financial services providers. It is essential to exercise caution when dealing with unsolicited offers or investments.

Holiday and Closure Dates

The BVI office will be closed on:

• 16 October 2023 (Heroes and Foreparents Day)

The Hong Kong office will be closed on:

• 23 October 2023 (Chung Yeung Festival)

This summary is intended to provide a general overview of recent changes to financial services regulatory legislation in the BVI. However, it should not be relied upon as a substitute for consulting the substantive legislation or seeking professional advice.