FSC Guidelines for the Approved Persons Regime 2009 (2013 Consolidated)

Summary

This is the BVI Financial Services Commission's consolidated guidance (originally 2009, amended through December 2013) on the Approved Persons Regime. It explains how the Commission assesses and approves individuals proposed to serve as senior officers, compliance officers, directors, authorised representatives, actuaries, auditors and other independent officers of regulated persons, and sets out the fit and proper criteria, supporting documentation, and ongoing duties attached to those roles.

• Senior officer approval: Regulated persons must apply on Form A for approval of a proposed senior officer, providing certified identification and qualification documents, a CV, a police certificate or sworn affidavit, and professional, personal and financial references, together with a non-refundable administration fee (currently one hundred dollars unless a different fee is prescribed).
• Compliance officers: A separate application process (Part VIA) applies to appointment or exemption of a Compliance Officer, including a fit and proper assessment and a declaration form for exemption (Form C).
• Actuaries, auditors and other independent officers: Applications for approval, change of auditor, or notification of resignation/termination use Forms B-1, B-2 and B-3 respectively, and these persons must meet qualification and reporting obligations under their governing legislation.
• Authorised representatives: Approval applications are made using Form D.
• Ongoing duties: Senior officers have general management and AML/CFT duties and responsibilities; regulated persons must report any material change affecting an approved senior officer, and approvals are non-transferable and may be rescinded by the Commission.
• Complaints handling: Appendix C requires every regulated person to establish and maintain a written complaints procedure, make employees aware of it, investigate and record complaints in a complaints register, and retain full records for at least five years.

The Guidelines also describe the Commission's decision options on an application (approve, approve with conditions, request more information, reject, or defer pending a qualifying event within six months) and require the Commission to notify applicants of its decision, with reasons where relevant, within a set timeframe.

Key obligations

• Regulated persons must submit Form A, with supporting identification, qualification, police/affidavit and reference documents, when applying for approval of a senior officer, and pay the prescribed non-refundable administration fee.
• Regulated persons must report any material change affecting an approved senior officer to the Commission.
• Approval of a senior officer is non-transferable and can be rescinded by the Commission.
• Applicants for senior officer approval must disclose the number of directorships (including in non-regulated companies) held at the time of application.
• Regulated persons seeking to appoint, change or have resign an actuary, auditor or other independent officer must use Forms B-1, B-2 or B-3 as applicable.
• Regulated persons must establish, maintain and make employees aware of a written complaints handling procedure.
• Regulated persons must record all complaints and follow up actions in a complaints register and retain full records for at least five years after the last response.
• Complaints should receive a substantive response within a reasonable period, expected to be within four weeks of receipt, and must be reviewed and signed off by senior management.
• The Commission must notify an applicant of its decision on a senior officer application within seven days of that decision, giving reasons where the application is conditioned, rejected or deferred.

Applies to

regulated persons, senior officers, compliance officers, directors, actuaries, auditors, other independent officers, authorised representatives, banks and trust companies, insurance companies, company management licensees

Deadlines

• within seven days of taking a decision: The Commission must notify the applicant of its decision on a senior officer application.
• within four weeks after receipt of a complaint: Expected timeframe for sending a substantive response to a complainant.
• at least five years after the date of the last response: Minimum retention period for full complaint records.
• not more than six months from the date of consideration of the application: Maximum period the Commission may defer an application awaiting a specific occurrence, such as attainment of a qualification.
• 2nd March, 2009: Coming into force date of the original Guidelines for the Approved Persons Regime.