Application for a Licence to Act as an Insolvency Practitioner - Explanatory Notes

Summary

These are explanatory notes issued by the BVI Financial Services Commission to accompany the official application form for a licence to act as an insolvency practitioner. They explain, question by question, how the Commission interprets the licensing requirements found in the Insolvency Act 2003, the Insolvency Rules 2004, the Insolvency Practitioners Regulations 2004 and the Insolvency Code of Practice, and include a worked example of the insolvency experience record (Appendix 1).

• Record keeping: Licensees must notify the Commission of the Virgin Islands address where required records are kept, and retain those records for at least six years after the relevant appointment ends.
• Residency: Only a person resident in the Virgin Islands may apply, and the notes set out three alternative bases for establishing residency plus the supporting documents expected.
• Qualifications and experience: Applicants are assessed on a combination of relevant professional qualification (typically accountancy or law, though others may be considered) and hands on insolvency experience across three defined categories, with at least half of required experience falling within category (a).
• Fit and proper - infrastructure: Applicants must describe staff complement and internal quality control and supervisory procedures, including any planned but not yet implemented.
• Security / professional indemnity insurance: Every licensee or their firm must maintain professional indemnity insurance (or an acceptable alternative security such as a bond) covering at least $500,000 per claim and in the aggregate annually for negligence or breach of duty.
• Fees: Applications must be accompanied by a non refundable application fee of $250; ongoing licence fees are set out in Regulation 5.

The notes are guidance only, cross-referenced to specific questions on the statutory application form, and do not themselves alter the underlying legal requirements in the Act, Rules, Regulations or Code.

Key obligations

• Licensees must notify the Commission of the Virgin Islands address where required records are kept (Regulation 6(2)).
• Licensees must retain required records for at least six years after the relevant appointment ceases to have effect (Regulation 6(3)).
• Only a person resident in the Virgin Islands may apply for an insolvency practitioner licence, and must provide documentary evidence of residency status.
• Applicants must demonstrate appropriate insolvency qualifications and/or hands-on experience, with at least half of required practical experience falling within category (a).
• Applicants must describe staff complement and internal quality control/supervision procedures.
• Every licensee (or their firm) must maintain professional indemnity insurance of at least $500,000 per claim and in the aggregate annually, or provide an acceptable alternative form of security.
• Applications must be accompanied by a non-refundable application fee of $250.

Applies to

insolvency practitioners, applicants for an insolvency practitioner licence