Financial Services Commission (Amendment) Act, 2022

Summary

This Act amends the BVI Financial Services Commission Act, 2001 (Revised Edition 2020) to expand the Commission's crisis management, resolution and information-sharing powers, create a new register of directors and senior officers, add cooperation mechanisms with other domestic authorities, and introduce transitional rules for custodians of bearer shares. It also updates offence and penalty provisions and the schedules listing regulatory legislation. Commencement is not immediate but takes effect on a date to be appointed by the Minister by Gazette notice.

• Crisis management and resolution: New definitions (competent authority, rehabilitator, resolution proceedings, VIDIC, financial distress) and expanded powers under sections 4A and new sections 33F allow the Commission to undertake resolution proceedings against licensees, including banks, in coordination with the Virgin Islands Deposit Insurance Corporation (VIDIC).
• Register of directors and senior officers: New section 17A requires the Commission to establish and maintain a register of approved directors and senior officers of licensees, which may be published online or made searchable for a fee.
• Cooperation with domestic authorities: New section 33E allows the Commission to exercise its investigatory and information-gathering powers, appoint examiners, or disclose information at the request of domestic competent authorities (including VIDIC and law enforcement), subject to conditions and cost-sharing.
• Financial distress notification duties: New section 33F requires licensees showing early indicators of financial distress to notify the Commission (and, for banks, VIDIC) and to initiate recovery plans.
• Bearer shares transitional regime: New section 59A requires existing custodians of bearer shares to deliver custody of the shares within six months of commencement, after which their approval or recognition as custodians ceases.
• Offences and penalties: Amendments to the offences provisions revise victimisation-related offences, alter a penalty from a monetary figure to a term of years, and expand the regulations power under section 62 to cover administrative penalties, rehabilitator functions and director/partner disqualification.
• Schedules updated: Schedule 1 is amended regarding sealing and authentication of the Regulatory Code and other instruments, and Schedule 2 is amended to add the Financial Services Commission Act itself to the list of Regulatory Legislation.

Overall the Act strengthens the Commission's supervisory, information-sharing and resolution toolkit and imposes new proactive notification duties on licensees and specific transitional obligations on bearer share custodians.

Key obligations

• Licensees must immediately notify the Commission if a director or senior officer ceases to hold office, including the reason for ceasing to hold office (new section 17A(4)).
• A licensee that knows or forms the opinion it shows early indicators of financial distress must forthwith notify the Commission with information on the surrounding circumstances (new section 33F(2)(a)).
• A licensee that is a bank must forthwith notify VIDIC that it is or suspects it might be in financial distress and comply with any directions VIDIC gives (new section 33F(2)(b)).
• A licensee showing early indicators of financial distress must initiate recovery plans to address the concerns identified (new section 33F(2)(c)).
• Existing authorised or recognised custodians of bearer shares must, within six months of the Act's commencement, deliver custody of the bearer shares to the person on whose behalf they are held, or, if that person cannot be located or refuses delivery, to the issuing company (new section 59A(1)).

Applies to

licensees, banks, custodians of bearer shares, directors and senior officers of licensees

Deadlines

• date to be appointed by the Minister by Notice published in the Gazette: Commencement date of the Financial Services Commission (Amendment) Act, 2022.
• within 6 months of the coming into force of this Act: Custodians of bearer shares must deliver custody of the bearer shares to the beneficial holder or, failing that, to the issuing company.
• 6 months after the coming into force of this Act: Persons approved or recognised as authorised custodians of bearer shares automatically cease to hold that status.

Related documents

• This document amends Financial Services Commission Act (Revised Edition 2020)