BVI FSC Consolidated Supervision Policy

Summary

This policy sets out how the BVI Financial Services Commission supervises regulated entities that form part of a wider group structure, whether the Commission acts as home supervisor (where the group parent is BVI based) or host supervisor (where the BVI entity is a subsidiary of a foreign regulated group). It works alongside the Commission's Risk Assessment Framework and the Regulatory Code's consolidated supervision provisions, and applies a risk based approach covering prudential, conduct and AML/CFT dimensions.

• As host supervisor: The Commission will not approve a BVI branch or subsidiary of a foreign regulated group unless it receives written confirmation from the home supervisor on information sharing, no objection to establishment, absence of regulatory concerns, and inclusion in the parent's consolidated supervision.
• As home supervisor: Where the BVI entity is the group parent, the Commission supervises it on a consolidated basis against international standards (FATF, Basel Core Principles, IAIS, IOSCO, etc) and assesses requests to establish branches or subsidiaries abroad.
• Organisational charts: Regulated entities and licence applicants must submit an organisational chart identifying parent, subsidiaries, related entities and the supervisory authority responsible for each, and must keep it updated as group structure changes.
• Information and access rights: The Commission reserves the right to access governing documents, financial statements, management accounts and qualitative information across the group, and may require a regulated entity to pay for supervision costs, including on site inspections of subsidiaries or representative offices.
• Licensing refusal: The Commission will not grant a licence where the applicant's group structure is overly complex, lacks clear governance, or is subject to inconsistent regulatory standards that would hinder effective consolidated supervision.
• Home host cooperation: The Commission will maintain open communication with foreign counterparts and enter into Memoranda of Understanding for information sharing, joint or coordinated on site supervision, and joint reporting where appropriate.

The policy applies to all BVI regulated entities that form part of a group once the Commission determines, at licensing or at any later stage, that consolidated supervision is warranted to mitigate risk. It does not set out fixed periodic filing deadlines but establishes ongoing obligations tied to changes in group structure and to licensing and cross border establishment requests.

Key obligations

• A regulated entity or licence applicant must submit an Organisational Chart disclosing the parent company, subsidiaries, and the supervisory authority responsible for each group entity
• Regulated entities must provide an updated Organisational Chart to the Commission to reflect any changes to the group's structure or membership
• Where the Commission acts as host supervisor, it will not grant approval or authorisation for a BVI entity unless it receives written confirmation from the home supervisor covering information sharing, no objection to establishment, absence of regulatory concerns, and inclusion in consolidated supervision
• A regulated entity may be required to pay for part or all of the cost of supervision, including on site inspections, of a subsidiary or representative office
• Where a BVI regulated entity seeks to establish a branch or subsidiary in another jurisdiction, it is subject to the Commission's assessment of business type, financial strength, and adequacy of host jurisdiction regulation before consent is given
• Regulated entities must be prepared to provide qualitative and quantitative group information on request, including governance documents, financial statements, fitness and propriety details of shareholders and management, and internal control information

Applies to

insurers, insurance brokers, insurance agents, insurance loss adjusters, insurance managers, banks, fiduciary services providers (trustees, company managers, registered agents), investment business licensees, financing and money services businesses, peer to peer and peer to business FinTech lenders, insolvency practitioners (administrators, liquidators, bankruptcy trustees), regulated entities forming part of a group structure