BVI FSC Issued Statistical Bulletin for the Second Quarter of 2010

The Financial Services Commission issued the nineteenth volume of its Quarterly Statistical Bulletin, providing statistics and analysis on activities in the financial services sector in the jurisdiction in the second quarter of 2010.

According to the Registry of Corporate Affairs, the number of newly incorporated business companies in the second quarter of 2010 was 12,815, compared to 16,596 reported in Q1 2010. However, this is a significant increase compared to the second quarter of 2009, when just 9,871 companies were incorporated. Cumulative number of companies incorporated in the British Virgin Islands as at 30 June, 2010 was 468,306.

Banking and Fiduciary Services statistics in the second quarter of 2010 showed the following aggregate totals for commercial banks: total assets were approximately US$2,529,282,000, net income was US$28,948,000, operating income was US$46,953,000. In Investment Business sector, 52 licenses were granted in the reported period, total number of licensed entities was 2956.

In the sector of Legal and International co-operation, 29 matters were registered that required international co-operation, 23 of them were formal requests asking for the disclosure of non-public information. Total number of enforcement actions before the Enforcement Committee was 13.

In the second quarter 2010, there were 307 matters considered by the Licensing and Supervisory Committee (LSC), 167 of them in the Investment Business sphere, 88 in the sphere of Banking and Fiduciary services, 45 related to Insurance, and 7 to Insolvency services.

Four Senior Level Appointments in the BVI FSC

In the last month, the Commission has made several senior level appointments. On 1 July, 2010 David Abednego was confirmed as Director, Insolvency Services, Alva McCall as Deputy Director, Policy, Research and Statistics, Michelle Georges as Deputy Director, Banking and Simone Martin as Deputy Director, Fiduciary Services.

Since 2008, David Abednego has been Deputy Director of the Insolvency Services Department, assisting the former Director, Christopher Hill, with the implementation of the Insolvency Act.

Before joining the FSC in 2008, Alva McCall was the Clerk of the House of Assembly. As Deputy Director of the Policy, Research and Statistics Department, she will be responsible for researching regulatory issues, liaising with international standard setting organisations, especially FATF and the IMF, and providing strategic policy advice.

Michelle Georges, will supervise authorised custodians, banks and the money services business. Her most recent post before being appointed as Deputy Director of Banking Department was with Banco Popular de Puerto Rico´s Commercial Lending Division.

Simone Martin, appointed as a Deputy Director of Fiduciary Services, will supervise trust companies and company managers. She has worked in the Commission since its inception.

BVI FSC Issued Advisory Warnings on Insurance Companies

The British Virgin Islands Financial Services Commission issued Advisory Warnings on two companies, having informed the public that Team Casualty Insurance Company Limited and Willow Grove Life Insurance Company Limited are no longer licensed to carry on insurance business in or from the British Virgin Islands.

In the Advisory Warning, the BVI FSC stated that Team Casualty Insurance Company Limited and Willow Grove Life Insurance Company Limited contravened the following sections of the Insurance Act, 1994:

(a) Section 55 of the Act by failing to seek the prior approval of the Commission to discontinue its business in the British Virgin Islands;
(b) Section 73 of the Act by having a prescribed word in their names;
(c) Section 22(1)(a) and (b) of the Act by failing to submit annual reports to the Commission since 2005; and,
(d) Section 17 of the Act by failing to pay the annual license fee since 2007.

BVI FSC Specifies New Transition Date for Investment Businesses

The British Virgin Islands Financial Services Commission announced the extention to the transition dates under the Securities and Investment Business Act, 2010 (SIBA) and Mutual Funds Regulations, 2010. The transition provisions apply to existing private, public and professional mutual funds previously authorised under the Mutual Funds Act, as well as to investment related businesses, and specify transition dates and periods in which they must achieve compliance with SIBA.

The transitional provisions under SIBA and Mutual Funds Regulations were recently amended by the Securities and Investment Business (Amendment of Schedule 8) Order, 2010 and Mutual Funds (Amendment) Regulatons, 2010. Two transitions dates specified in SIBA were 3 August, 2010 and 12 October, 2010. The new single transition date specified in the amendments is 31 December, 2010.

SIBA and Mutual Funds Regulations replaced the Mutual Funds Act, 1996 and came into force on 17 May, 2010. These are legislative acts under which the Commission regulates mutual funds and investment related businesses functioning in the British Virgin Islands.