Financial Services Commission Act (Revised Edition 2020)

British Virgin Islands Financial Services Commission (FSC) · British Virgin Islands

Summary

This is the British Virgin Islands' foundational financial regulatory statute. It establishes the Financial Services Commission (the Commission) as the body corporate responsible for licensing, supervising and developing the BVI financial services industry, sets out its governance (Board, Managing Director, committees), its funding and reporting arrangements, and its powers of information gathering, compliance monitoring, investigation and enforcement.

Commission's core functions: Licensing, supervising and regulating financial services business, administering the registry legislation, monitoring compliance with AML/CFT and proceeds of crime legislation, and cooperating with foreign regulatory authorities.
Governance and internal administration: Establishes the Board, Licensing and Supervisory Committee, Enforcement Committee, Managing Director and staff appointment rules, and financial/reporting obligations of the Commission itself (budgets, accounts, annual report).
Information gathering and cooperation: Gives the Commission power to request information and documents, apply for search warrants, examine persons under oath, and imposes a duty to cooperate with the Commission and with foreign regulatory authorities.
Compliance and enforcement powers: Provides for compliance inspections, appointment of examiners and qualified persons, enforcement action, public statements, revocation or suspension of licences, protection orders and directives against licensees.
General supervisory tools: Empowers the Commission to issue practice directions, impose conditions, grant exemptions, require removal of directors, issue the Regulatory Code and guidelines, and approve forms.
Authorised and recognised custodians: Creates a framework for approving, conditioning and revoking approval of authorised and recognised custodians.
Offences, penalties and fees: Sets out general and specific offences, offences by bodies corporate, a duty to notify breach or offence, power to impose fines, power to require returns, and the Commission's fee-setting and cost-recovery powers, with a right of appeal.

The Act lists in Schedule 2 the specific pieces of regulatory and registry legislation the Commission administers (e.g. Banks and Trust Companies Act, Insurance Act, Securities and Investment Business Act, Proceeds of Criminal Conduct Act, Insolvency Act, Financing and Money Services Act, BVI Business Companies Act and others), meaning entities licensed or regulated under any of those laws fall within the Commission's powers under this Act.

Key obligations

Licensees and regulated persons must comply with the Regulatory Code, guidelines, practice directions, conditions and directives issued by the Commission.
Persons under investigation or examination must cooperate with the Commission, including providing information and documents requested under section 32 and submitting to examination under oath where required.
Licensees and other regulated persons must notify the Commission of any breach or offence under section 54A.
The Commission may require licensees to submit returns, and licensees must comply with such requirements under section 56A.
Licensees must maintain a compliance function and, where applicable, corporate compliance arrangements under sections 34 and 34A.
Licensees and regulated persons must pay fees and, where applicable, costs as prescribed by the Commission under sections 57 and 57A.
Persons acting as authorised or recognised custodians must meet and continue to satisfy the conditions of approval set by the Commission, on pain of revocation.

Applies to

licensees, regulated persons, financial services businesses, banks and trust companies, insurance businesses, securities and investment businesses, company managers, insolvency practitioners, money services businesses, authorised custodians, recognised custodians, persons carrying on unauthorised financial services business

Financial Services Commission Act (Revised Edition 2020)

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