Guidelines and Operating Procedures of the Enforcement Committee (FSC/G050)

Summary

This is the BVI Financial Services Commission's internal procedures manual for its Enforcement Committee (EC), which exercises the Commission's compliance and enforcement powers under the Financial Services Commission Act, 2001. It sets out how the EC is composed, how it makes decisions, and the principles and processes it follows when handling breaches, offences, investigations and administrative penalties against regulated persons in or from the Virgin Islands.

• Governance: Establishes the EC's membership, chairmanship, quorum, voting and delegation of authority, including conditions under which EC functions/powers may be delegated to senior officers or Commissioners.
• Conduct principles: Requires confidentiality, consistency, transparency, due process, and a code of conduct (including restrictions on use of official information, gifts, media contact) for EC members and staff.
• Enforcement process: Describes how regulatory divisions must handle discovered breaches or offences, referral procedures, urgent case handling, and use of compulsory powers such as notices to produce information/documents and search warrants.
• Enforcement actions: Sets out an 'ascending ladder' of enforcement actions (public statements, suspension, revocation, removal of auditors/directors/officers) and the considerations and delegation rules governing their use.
• Administrative penalties: Details the procedure under the Financial Services (Administrative Penalties) Regulations, 2006, including issuance of a Notice of Proposed Penalty, the right to make representations, and issuance of a Notice of Imposed Penalty with payment terms; also covers procedure under the AML/TF Code of Practice, 2008.
• Complaints and disclosure: Covers handling of complaints, whistleblowers, mediation of disputes, and publication of EC decisions, plus maintenance of registers of complaints and EC decisions.

The document is a procedural guideline for the regulator's own enforcement machinery rather than a rule imposing ongoing obligations on industry generally, but it does create specific timelines and duties for persons who become subject to enforcement action or an administrative penalty notice.

Key obligations

• A person served with a Notice of Proposed Penalty may make a written representation to the Commission, in prose with supporting documentation, within 21 days of the date of the Notice, addressed to the Secretary of the Enforcement Committee.
• A person on whom an administrative penalty is imposed must pay the penalty to the Commission within 14 days of receipt of the Notice of Imposed Penalty.
• A person wishing to pay an administrative penalty by instalments must notify the Commission immediately with a proposed instalment arrangement; the original payment deadline remains unchanged unless the Commission agrees otherwise.
• Regulatory divisions of the Commission must follow specified procedures on discovery of a breach or an offence, including referral to the Enforcement Committee.
• Persons issued a compulsory notice to provide information or produce documents must comply in the manner and form prescribed by the EC.
• The Enforcement Committee must submit reports to the Commission's Board on enforcement actions and on the performance of its functions at least quarterly.

Applies to

licensees and other persons regulated under Virgin Islands financial services legislation, persons engaged in unauthorized financial services business, auditors, directors, senior officers and compliance officers of regulated entities, complainants and whistleblowers interacting with the Commission

Deadlines

• 21 days from the date of the Notice of Proposed Penalty: Deadline for a person to make a written representation to the Commission as to why an administrative penalty should not be imposed or should be reduced.
• 14 days of receipt of the Notice of Imposed Penalty: Deadline for payment of an imposed administrative penalty to the Commission.
• at least once every quarter: Frequency with which the Enforcement Committee must report to the Commission's Board on performance of its functions.

Related documents

• Amendments to the Guidelines and Operating Procedures of the Enforcement Committee (FSC/G050) (2015-02-25) amends this document