Insolvency (Amendment) Code of Practice, 2023

Summary

This Code amends Chapter III of the Insolvency Code of Practice (Revised Edition 2020), which sets out how the BVI Financial Services Commission assesses applicants for licensing as insolvency practitioners. It came into force on 1 March 2023, the same date the Insolvency (Amendment) Act, 2022 took effect.

• Residency test replaced: New paragraph 1 sets out when the Commission will treat an applicant as resident in the Virgin Islands for section 476(1)(a)(i) purposes: belonging to the Virgin Islands under the Constitution Order 2007, holding a certificate of residence under the Immigration and Passport Act 1977, or habitually and lawfully residing in the Virgin Islands with entitlement to work or operate a business there.
• 180 day absence allowance: A licensed insolvency practitioner is treated as continuing to be resident if, in any year after licensing, temporary or occasional absences from the Virgin Islands do not exceed 180 days (continuous or aggregate).
• Fit and proper standard updated: Paragraph 2.1 is amended so the Commission applies the fitness and propriety standards in Schedule 1A of the Regulatory Code, Revised Edition 2020, when assessing whether an applicant is fit and proper to act as an insolvency practitioner.
• Minor drafting amendment: Paragraph 4.2 is amended to add the words 'of the Regulations' at the end of the paragraph.

The changes affect individuals applying for or holding a licence as an insolvency practitioner in the Virgin Islands, and the Commission's own criteria for determining residency and fitness and propriety in that licensing process.

Key obligations

• A licensed insolvency practitioner seeking to remain treated as resident in the Virgin Islands must ensure temporary or occasional absences do not exceed 180 days (continuously or in aggregate) in any year after licensing.
• Applicants for insolvency practitioner licensing must satisfy one of the three residency criteria (belonging status, certificate of residence, or habitual lawful residence with work/business entitlement) to be considered resident in the Virgin Islands.

Applies to

insolvency practitioners, applicants for licensing as insolvency practitioners

Deadlines

• 1 March 2023: Commencement date of the Code, coinciding with the coming into operation of the Insolvency (Amendment) Act, 2022, No. 16 of 2022.