Advisory Warning No. 1 of 2025 - Unauthorised Investment Business Services (2025-11-28)

Summary

This is a public advisory issued by the BVI Financial Services Commission warning the public about individuals and entities offering investment, financial advisory, or investment management services in or from the Virgin Islands without an FSC licence. It reiterates that conducting investment business without authorisation under the Securities and Investment Business Act, 2010 is a criminal offence carrying penalties and/or imprisonment.

• Risks flagged: Higher risk of fraud, lack of supervisory oversight, mismanagement of investments, limited legal recourse, and violation of statutory legislation when dealing with unauthorised persons.
• Verification: Members of the public are urged to check the FSC's website list of licensed entities or email commissioner@bvifsc.vg before engaging any investment service provider.
• Due diligence: Public advised to be sceptical of unsolicited offers, pressure tactics, and promises of high returns, and to seek professional advice.
• Reporting: Suspected unauthorised financial services activity should be reported to the FSC via commissioner@bvifsc.vg.
• Scope of licensing requirement: Only entities licensed, authorised or approved by the FSC may conduct banking, money services, financing business, insolvency services, fiduciary services, investment business, insurance business, or virtual asset services in or from the Territory.

The warning is issued under Section 4(1)(l) of the Financial Services Commission Act, 2001, and is informational in nature, aimed at protecting the public rather than imposing new compliance requirements on already-licensed entities.

Key obligations

• Any person carrying on, or holding themselves out as carrying on, investment business in or from the Virgin Islands must hold a licence under the Securities and Investment Business Act, 2010
• Members of the public are advised to verify a provider's licensing status with the FSC before engaging in investment business with them
• Suspected unauthorised financial services activity should be reported to the FSC via commissioner@bvifsc.vg

Applies to

unlicensed individuals and entities offering investment business services, members of the public, licensed investment business providers, banks, money services businesses, financing businesses, insolvency service providers, fiduciary services providers, insurance businesses, virtual asset service providers