Guidelines for the Approved Persons Regime (2010 Revision)

Summary

These are the BVI Financial Services Commission's Guidelines for the Approved Persons Regime, which set out the rules and procedures the Commission follows when considering applications for approval of senior officers, compliance officers, and actuaries, auditors and other independent officers of regulated persons. They also describe the ongoing duties of these approved persons and, in the appendices, minimum standards for compliance manuals and complaints handling.

• Senior officer approval: Regulated persons must apply on Form A, with certified identification and qualification documents, a CV, a police certificate or affidavit, and professional, personal and financial references, plus a non-refundable administration fee.
• Commission decisions: The Commission may approve (with or without conditions), reject, request further information, or defer an application pending a specific occurrence (e.g. attaining a qualification) within up to six months.
• Duties of senior officers: Guidelines describe general management duties and specific AML/CFT responsibilities expected of senior officers.
• Actuaries, auditors and other independent officers: Separate application (Form B-1), change-of-auditor (Form B-2) and resignation/termination (Form B-3) processes apply, alongside qualification and continuation-of-approval requirements.
• Compliance Officer regime: Sets out the application process for approval of a Compliance Officer (or a declaration of exemption on Form C), fit and proper testing, and matters relevant to the compliance function.
• Material change and cessation: Approved senior officers and regulated persons must report material changes affecting an approved person, and follow procedures if a senior officer ceases to hold that position; approvals are not transferable.
• Complaints handling (Appendix C): Regulated persons must establish and maintain a complaints procedure, ensure staff awareness, investigate complaints, maintain a complaints register, and retain full records for at least five years.

The Guidelines apply generally to persons regulated under BVI financial services legislation (including banks and trust companies, company managers and insurers) that are required to seek Commission approval for senior officers, compliance officers, actuaries, auditors or other independent officers.

Key obligations

• Regulated persons must submit an application for approval of a senior officer on Form A, accompanied by certified identification and qualification documents, a CV, a police certificate or sworn affidavit, and professional, personal and financial references.
• A non-refundable administration fee (currently one hundred dollars, or the amount prescribed by applicable legislation) must accompany a senior officer approval application.
• The Commission must notify the applicant of its decision within seven days of taking a decision on an application.
• Where the Commission approves with conditions, rejects, or defers an application, it must provide the applicant with its reasons.
• Regulated persons and senior officers must report any material change affecting an approved senior officer.
• Actuaries, auditors and other independent officers must apply for Commission approval (Form B-1) and notify changes of auditor (Form B-2) or resignation/termination (Form B-3).
• Regulated persons must submit a Compliance Officer approval application, or file a declaration of exemption (Form C), and ensure the Compliance Officer meets the fit and proper test.
• Regulated persons must establish and maintain a written complaints handling procedure and ensure employees are aware of and comply with it.
• Complaints must be investigated and a substantive response sent to the complainant, expected within four weeks of receipt.
• Regulated persons must maintain a complaints register and retain full complaint records for at least five years after the last response.

Applies to

regulated persons under BVI financial services legislation, banks and trust companies, company managers, insurers, senior officers, compliance officers, actuaries, auditors, other independent officers

Deadlines

• 2nd March, 2009: Coming into force date of the Guidelines.
• 7 days after decision: Commission must notify applicant of its decision on a senior officer/compliance officer/actuary/auditor approval application.
• within 6 months: Maximum period for deferral of an application pending attainment of a specific occurrence such as a qualification.
• within 4 weeks of receipt: Expected timeframe for sending a substantive response to a customer complaint.
• at least 5 years after the date of the last response: Minimum retention period for full complaint records.