Financial Services (Exceptional Circumstances) Act, 2020

Summary

This Act creates a standing legal framework that the BVI Financial Services Commission and Minister can activate by Order whenever an exceptional circumstance (such as a pandemic, natural disaster or other crisis) makes it difficult to conduct, license, regulate or supervise financial services business in and from the Virgin Islands. It does not itself impose ongoing requirements unless and until an Order is issued bringing all or specified provisions into force for all or specified licensees.

• Administration: Once activated, normal Board, Enforcement Committee and Licensing and Supervisory Committee quorum, meeting and majority-vote requirements are waived, and the Chairman or Managing Director may take urgent decisions in their place, subject to later ratification.
• Relocation within the Virgin Islands: A licensee or other person that relocates its registered address within the BVI due to damage, health hazard or unsuitability must notify the Commission in writing, giving the new address, relocation dates, and whether the move is temporary or permanent; temporary moves are not treated as a change of registered address and attract no fee.
• Relocation outside the Virgin Islands: A licensee may temporarily relocate all or part of its business and staff to another jurisdiction while remaining deemed to operate in, and be regulated under the laws of, the Virgin Islands; it must notify the Commission of the relocation, segregate its BVI business from other activities abroad, keep complying with BVI law, and file monthly progress reports on returning to the BVI.
• Insurance and complaints: The Act allows special treatment of insurance loss adjusters (exempting them from normal licensing requirements) and continues/establishes a Financial Services Complaints Tribunal during or after an exceptional circumstance.
• General flexibility measures: The Commission may accept applications missing documents that could not be obtained due to the exceptional circumstance, issue guidelines, extend time limits, and substitute website publication for Gazette publication.

The practical effect on any given licensee depends entirely on the terms of a Ministerial Order made under section 3, which specifies which provisions apply, to whom, from what date, and for how long (potentially retroactively).

Key obligations

• A licensee or other person relocating within the Virgin Islands must notify the Commission in writing, before or within one month of relocating, with the new address, relocation dates and whether the move is temporary or permanent.
• A licensee or other person relocating outside the Virgin Islands must notify the Commission in writing within one month of relocating, stating the destination jurisdiction, relocation dates, extent of relocation, staff relocated or laid off, and plans to return.
• A licensee or other person that has relocated abroad must segregate its Virgin Islands business from other business conducted in the new jurisdiction and continue to comply with Virgin Islands laws and best practices.
• A relocated licensee or other person must submit periodic (monthly, unless otherwise directed) written progress reports to the Commission on relocating operations back to the Virgin Islands.
• If a licensee or other person fails to return to its registered address within three months after the Act ceases to have effect, it is deemed to have changed its registered office and must be treated accordingly under the FSCA or applicable legislation, unless the Commission determines otherwise.

Applies to

licensees, other persons subject to the FSCA or financial services legislation, insurance loss adjusters

Deadlines

• within one month of relocating (following publication of the Order or the relocation date, whichever is later): Notification to the Commission of relocation within the Virgin Islands or to another jurisdiction.
• every month from the date of initial notification: Periodic written progress reports to the Commission on relocation back to the Virgin Islands, unless the Commission specifies a different period or waives reporting.
• 3 months from the date this Act ceases to have effect: Deadline for a relocated licensee or other person to return permanently to its registered address before being deemed to have changed its registered office.
• 28th March 2020: Date the Act came into force (commencement).

Related documents

• Financial Services (Exceptional Circumstances) (Amendment) Act, 2025 (No. 1 of 2025) amends this document