Financial Services (Prudential and Statistical Returns) Order (Revised 2020)

Summary

This Order requires regulated persons in the Virgin Islands financial services sector to prepare and file prudential and statistical returns with the Financial Services Commission (FSC), so the FSC can monitor risks, produce statistics and meet its regulatory and international obligations. It sets out filing deadlines by return type, rules for extensions and correcting errors, and a schedule of administrative penalties for non compliance.

• Who must file: Every 'regulated person' - a person licensed, registered, authorized or recognized under legislation listed in Part 1, Schedule 1 of the Financial Services Commission Act - must file the applicable prudential or statistical return (Schedule 1: mutual funds statistical return; Schedule 2: banks prudential return; Schedule 3: fiduciary services business prudential return).
• Accuracy duty: Filers must ensure returns are accurate and complete; returns that are incomplete, materially inaccurate or misleading, or rejected by the Commission in writing within 7 days of filing are not treated as properly filed.
• Extensions: The Commission may grant an extension of up to 30 days on written application received at least 7 days before the filing deadline, but will refuse extensions in various circumstances (outstanding returns, unpaid penalties, staffing/workload excuses, etc.).
• Rectifying errors: A regulated person that discovers its filed return is inaccurate or misleading must notify the Commission in writing and provide correct information within 5 days of becoming aware, using Schedule 4 Part I; if the Commission itself discovers the inaccuracy, it will notify the filer under Schedule 4 Part II and require correction within 7 days of that notification.
• Electronic filing: Returns and rectifications may be filed electronically using forms provided by the Commission, but electronic filings that the Commission cannot load onto its systems are not treated as properly filed once the filer is notified.
• Penalties: Schedule 5 imposes administrative fines for breaches: failure to file a return (from 400 dollars for the first 30 days plus 100 dollars per additional month), failure to file within an extension period (600 dollars plus 100 dollars per additional month), failure to ensure accuracy (300 dollars), and failure to notify or correct inaccurate information within the prescribed time (700 dollars each under sections 7(1) and 7(2)).

Specific filing periods are set in each Schedule: mutual fund statistical returns are due annually by 30 June for the preceding year, and bank prudential returns are due quarterly by the last day of the month following the relevant quarter. The Commission may also issue guidelines that have binding effect in applying this Order.

Key obligations

• Every regulated person must file the applicable prudential or statistical return with the Commission in accordance with the requirements of the relevant Schedule.
• Every regulated person must ensure the information in any filed return is accurate and complete.
• Mutual funds must file the annual Statistical Return by 30 June in respect of the preceding year.
• Banks must file the Prudential Return quarterly, on or before the last day of the month following the end of the relevant quarter.
• A regulated person that becomes aware its filed return is inaccurate or misleading must notify the Commission in writing and provide correct information within 5 days of becoming aware, using Schedule 4 Part I.
• A regulated person notified by the Commission that its return may be inaccurate or misleading must provide accurate information within 7 days of that notification, using Schedule 4 Part II.
• An application for an extension of time to file a return must be submitted in writing and received at least 7 days before the filing deadline stated in the applicable Schedule.
• Regulated persons filing electronically must use the forms provided by the Commission on its website or other approved electronic medium.

Applies to

mutual funds, banks, fiduciary services business (trust companies), regulated persons licensed, registered, authorized or recognized under Financial Services Commission Act regulatory legislation

Deadlines

• on or before 15 November 2009: Statistical Returns for mutual funds in respect of 2008 were due.
• annually on or before 30 June: Subsequent mutual fund Statistical Returns due, in respect of the preceding year.
• quarterly, on or before the last day of the month following the end of the relevant quarter: Bank Prudential Returns due.
• within 5 days of becoming aware: Regulated person must notify the Commission and provide accurate information after discovering inaccurate or misleading information in a filed return.
• within 7 days from the date of notification: Regulated person must provide accurate information after the Commission notifies it of inaccurate or misleading information in a filed return.
• at least 7 days before the date of expiry of the filing period: Deadline for submitting a written application for an extension of time to file a return.
• up to 30 days: Maximum extension period the Commission may grant for filing a return.
• within 7 days after the date filed: Period within which the Commission may reject a filed return and notify the regulated person in writing of the reason.