Guidelines for the Approved Persons Regime (Amended March 2010)

Summary

These BVI Financial Services Commission Guidelines set out the process and criteria the Commission applies when regulated persons seek approval of senior officers, compliance officers, actuaries, auditors, other independent officers, directors and authorised representatives under the Approved Persons Regime. They explain the fit and proper test, required qualifications and supporting evidence, and the duties owed by regulated persons and their approved officers, including AML/CFT responsibilities.

• Applications: Applications for approval of a senior officer must be made on Form A with certified identification, qualifications, CV, police certificate or affidavit, and professional, personal and financial references; separate forms cover actuaries/auditors (Form B-1/B-2/B-3), compliance officer exemption (Form C) and authorised representatives (Form D).
• Fees: A non-refundable administration fee of one hundred dollars (or such amount as prescribed under applicable legislation) must accompany each application.
• Commission decisions: On receipt of an application the Commission may approve unconditionally, approve with conditions, request more information, reject, or defer for up to six months pending a specific occurrence, and must notify the applicant of its decision within seven days.
• Ongoing duties: Regulated persons and senior officers must report material changes affecting an approval, and approvals are non-transferable and may be rescinded by the Commission; procedures also apply to ceasing to act as senior officer and to change of auditor.
• Compliance officer regime: Part VIA sets out the application process for approval of a Compliance Officer, the declaration for exemption from appointing one, the fit and proper test, and grounds for a Compliance Officer ceasing to be fit and proper.
• Appendices: Appendix A gives guidance on the content and structure of a Manual of Compliance Procedures, Appendix B sets out reporting requirements, and Appendix C provides guidance on complaint management, including a required complaints register.

The complaint management guidance requires regulated persons to establish and maintain a complaints procedure, ensure staff awareness of it, investigate complaints through a person of suitable seniority, and generally provide a substantive response within four weeks, keeping full records for at least five years.

Key obligations

• Submit senior officer applications on Form A accompanied by certified identification, qualification documents, a CV, a police certificate (or sworn affidavit) and professional, personal and financial references
• Pay a non-refundable administration fee of one hundred dollars (or the prescribed amount) with each application for approval of a senior officer
• Report any material change affecting an approved senior officer to the Commission
• Obtain Commission approval before a change of auditor and notify the Commission of such change
• Establish and maintain a documented complaints handling procedure and ensure all employees are aware of it and their duty to comply
• Ensure complaints are investigated by a suitably senior or independent person and send a substantive response, generally within four weeks of receipt
• Maintain a complaints register recording complainant details, dates, nature of complaint, investigation and action taken
• Keep a full record of each complaint and the action taken for at least five years after the last response
• Comply with Part VIA procedures for applying for approval of a Compliance Officer or for declaring an exemption from appointing one

Applies to

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

Deadlines

• within seven days: The Commission must notify an applicant of its decision on a senior officer approval application within seven days of taking the decision
• not more than six months: Maximum period for which the Commission may defer an application pending a specific occurrence such as attainment of a qualification
• within four weeks: Expected timeframe for sending a substantive response to a customer complaint after receipt
• at least five years: Minimum period a regulated person must retain a full record of each complaint and the action taken after the date of the last response
• 2nd March 2009: Original coming into force date of the Guidelines (amended March 2010)