Thursday, October 25, 2007

Mr Baker's Speaking on the BVI Private Trust Companies Regulations

Kenneth Baker of BVI FSC Speaks on Amendments to BVI Business Companies Act“ continued.

Speaking about the Private Trust Companies Regulations, the Deputy Managing Director of the Commission Mr Kenneth Baker said the following:

1) The Financial Services Commission recognizes it is appropriate for some companies that act as trustee or provide other trust related services, to be exempted from the licensing requirement under the British Virgin Islands Banks and Trust Companies Act, 1990.

2) The BVI has permitted the use of private trust companies since the Banks and Trust Companies (Application Procedures) Directions, 1991, but, after 15 years, these could not serve as the requirements and needed the update.

3) Some years ago, the BVI branch of STEP submitted a proposal for updating the 1991 exemptions, but it was decided by BVI FSC that the proposals did not fully address its regulatory concerns. However, last year the Commission reviewed its intention of establishing a new regime for private trust companies.

Further on, Mr Baker outlined the legal framework for the private trust companies, including Financial Services (Exemption) Regulations 2007, BVI Business Companies (Company Names) Regulations 2007, and BVI Business Companies (Amendment of Schedules) Order 2007.

Other presentation points are the definition of a Private Trust Company (PTC), what types of trust business can be conducted by a Private Trust Company, definition of trust, unremunerated and related business; obligations on PTC, role and duties of registered agent, records held by him, and the reasonable steps that must be taken by a PTC.

Mr Kenneth Baker concluded that the initial reports from the BVI private sector indicated that the private trust company exemption regime is proving to be very popular, and that this is a direct result of the hard work that has gone into marketing this product.

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