The BVI Financial Services Commission Outlines Priorities for its New Enforcement Philosophy

Summary

This is a policy statement in which the BVI Financial Services Commission sets out its enforcement philosophy and announces new enforcement priorities aimed at making enforcement action more robust and dissuasive. It does not create new legal duties for regulated entities, but signals how the Commission will exercise its existing powers under the FSC Act, including section 56 fining powers.

• Guiding principles: Enforcement Committee decisions are to be transparent, based on full disclosure, follow due process, be efficient, preserve confidentiality, be applied consistently, and reflect professionalism and integrity.
• Enforcement tools: Range from warnings and directives to administrative penalties, fines, and licence revocation, applied proportionately to the nature and gravity of a breach.
• New priorities: Higher-order enforcement actions will be favoured; fines for non-compliance, repeated breaches, and partial compliance will start at maximum levels on a reducing scale depending on mitigating factors.
• Compliance inspection ratings: Inspection reports must rate each section and subsection so ratings feed more accurately into overall compliance ratings and enforcement penalties.
• Aggravating and mitigating factors: Duration, systemic weaknesses, market impact, financial gain, and loss to stakeholders are aggravating; first-time breach, reasonable cause, corrective measures, disclosure, and cooperation are mitigating.

The document applies to the Commission's own licensees and to unauthorised persons subject to its enforcement jurisdiction, and is intended to reinforce risk-based supervision by applying heavier penalties to higher-risk or repeat non-compliance.

Applies to

licensees, regulated persons, unauthorised persons, financial services businesses