Insolvency Practitioners Regulations (Revised 2020)

Summary

These Regulations set out the licensing regime for insolvency practitioners in the Virgin Islands under the Insolvency Act. They govern how a person applies for and obtains a licence, the fees payable, ongoing recordkeeping and notification duties, inspections by the Financial Services Commission, and how administrative penalties and complaints against licensees are handled.

• Licensing: Applications for an insolvency practitioner licence must be made to the Commission on the prescribed Schedule form, accompanied by a non-refundable $300 application fee, evidence of entitlement to work in the Virgin Islands, a curriculum vitae, and written confirmation from the applicant's firm or employer of compliance with minimum security requirements including insurance.
• Approval and collection: Once approved, an applicant must pay the licence fee and collect the licence within 3 months of the approval notice, or the approval expires unless exceptional circumstances are shown.
• Fees: Initial fees are $3,000 (issued on or before 30 June) or $1,500 (issued on or after 1 July), or $3,000 if issued subject to a restriction on new appointments; an annual fee of $3,000 or $1,500 (depending on licence type) is payable each year by 31 March, with a late payment penalty equal to the fee amount.
• Recordkeeping: Licensees must maintain records and case files for each insolvency appointment, notify the Commission in writing of the address where records are kept, and retain records for at least 6 years after an appointment ends.
• Inspections: The Commission may, on reasonable notice, inspect and copy a licensee's records to check compliance with the Act, regulations and Code of Practice.
• Notifications: Licensees (and applicants) must notify the Commission in writing, within 10 days of becoming aware, of any matter affecting fitness and propriety, changes in circumstances affecting eligibility or ability to act, or changes to name, address, business details, records location, or firm personnel matters.
• Administrative penalties: For contraventions of the Act, regulations, rules or Code of Practice, the Commission may impose a $500 penalty per contravention, increasing by 10% if unpaid within one month and by a further 50% if unpaid within two months, recoverable as a civil debt.
• Complaints: Complaints against licensees may be filed with the Commission (after first being raised with the licensee/firm), and if upheld can result in directives, suspension or revocation of licence, administrative penalties, enforcement action, publication of outcomes, or cost recovery; licensees may appeal to the Financial Services Commission Appeal Board.

The Regulations remain in force as revised to 1 January 2020 and apply to anyone seeking or holding a licence to act as an insolvency practitioner in the Virgin Islands.

Key obligations

• Submit licence applications to the Commission on the Schedule form with a $300 non-refundable application fee, proof of entitlement to work in the Virgin Islands, curriculum vitae, and firm/employer confirmation of minimum security and insurance compliance
• Pay the licence fee and collect the licence within 3 months of the approval notice being issued
• Pay an initial licence fee of $3,000 or $1,500 depending on issue date and type, and an annual fee of $3,000 or $1,500 by 31 March each subsequent year
• Maintain records and case files for each insolvency appointment and retain them for at least 6 years after the appointment ends
• Notify the Commission in writing of the address where records and documents are kept
• Notify the Commission in writing within 10 days of becoming aware of any matter affecting fitness and propriety, eligibility, or ability to accept appointments
• Notify the Commission in writing within 10 days of changes to name, address, business details, records location, or firm/employer personnel matters affecting fitness and propriety
• Pay any administrative penalty within one month of notice to avoid a 10% increase, and within two months to avoid a further 50% increase
• Address complaints with the licensee and firm/employer before escalating a complaint to the Commission

Applies to

insolvency practitioners, licensees, applicants for an insolvency practitioner licence

Deadlines

• within 3 months from the date on which the approval notice is issued: Deadline for an approved applicant to pay the licence fee and collect the licence
• on or before 30 June: Threshold for the lower initial licence fee of $3,000 to apply (issuance before this date)
• on or after 1 July: Threshold for the reduced initial licence fee of $1,500 to apply
• on or before 31 March every year following the year the licence is issued: Annual licence fee of $3,000 or $1,500 becomes payable
• within 10 days of becoming aware: Deadline for licensees/applicants to notify the Commission in writing of matters affecting fitness and propriety, eligibility, or specified changes
• before the expiration of one month from the date of delivery of the notice: Deadline to pay an administrative penalty of $500 per contravention before it increases by 10%
• before the expiration of 2 months from the date of delivery of the notice: Deadline to pay an increased administrative penalty before it increases by a further 50%