BVI FSC Issued Statistical Bulletin for Q4 2018

The British Virgin Islands Financial Services Commission has issued the fifty-third volume of its Quarterly Statistical Bulletin, providing analysis and information about financial services activities for the fourth quarter of 2018. According to the information published by the Registry of Corporate Affairs, which maintains the required registers of companies, there were 8,916 new incorporations of business companies in Q4 2018 (a 6.88% decrease when compared to 9,575 in Q3 2018 and 4.43% increase when compared to 8,538 in Q4 2017). Cumulative number of companies on the Register was 402,907 as at 31 December 2018.

In the fourth quarter of the year, there were 37 Limited Partnerships (LPs) newly formed in the BVI. There was a 37.04% increase in the number of new Limited Partnerships formed in Q4 2018 when compared to 27 in Q4 2017, and a 67.54% decrease in the number of LPs when compared to 114 in Q3 2018. Cumulative number of active LPs was 940 in the year 2018.

According to the information of the Intellectual Property Unit within the Registry of Corporate Affairs, which is responsible for administering all laws relating to intellectual property in the British Virgin Islands, in Q4 2018 there were 58 applications to register a trade mark - that is 61.11% increase when compared to 36 in Q4 2017, and 15.94% decrease compared to 69 in Q3 2018.

The figures of Banking, Insolvency and Fiduciary Services statistics recorded for all commercial banks show the decrease of cash items quarter over quarter and increase year over year. Loans and advances increased quarter over quarter and decreased year over year, while investments decreased quarter over quarter. The Net Interest Income for commercial banks decreased by 1.72% in Q4 2018 when compared to Q4 2017, and decreased by 23.68% in Q4 2018 when compared to Q3 2018.

Further information, including also Investment business and Insurance statistics, can be found on the BVI FSC homepage.

BVI FSC Issued Statistical Bulletin for Q3 2017

In the end of November, the British Virgin Islands Financial Services Commission issued the forty-eighth volume of Quarterly Statistical Bulletin, providing information on financial services activities in the territory for the third quarter of 2017. Statistics of the Registry of Corporate Affairs shows that 7,639 new business companies were incorporated in the British Virgin Islands in this period, as compared to 7,621 companies registered in the second quarter of 2017, and 7,766 companies registered in the third quarter of the previous year. Cumulative number of BVI BCs was 413,273 as at 30 September 2017. The Registry also published information about 24 Private Trust Companies and 23 Limited Partnerships incorporated in Q3 2017, cumulative number as at 30 September 2017 was 1,121 and 758, respectively.

According to Investment Business statistics, 14 new licences were granted to Approved Investment Managers, 3 licences granted to Professional Mutual Funds, and 2 licences to Private Mutual Funds. In total, 11 funds were registered/recognized in the third quarter of the year. 

In the reported period, there were 28 Insolvency Practitioners in the BVI in Q3 2017 (27 in Q2 2017, and 26 in Q3 2016). Cumulative number of Insurance Licensees and Functionaries as at 30 September of this year remained the same as by the end of the previous quarter. 

In the sphere of International Co-operation, in the third quarter of 2017 there were 49 Formal Incoming Requests, 1 Formal Request, 1 Formal Outgoing Request, 153 Enforcement Matters and 17 Enforcement Investigations. Of Ongoing Supervision Matters referred to the Licensing and Supervisory Committee, 79 referred to Banking, Insolvency and Fiduciary services, 110 referred to Investment Business, and 114 to Insurance. Other relevant information and statistics can be found on the website of BVI FSC.

Financial Services Statistics Published for the First Quarter of 2017

The BVI Financial Services Commission has published the forty-sixth volume of its Quarterly Statistical Bulletin, providing important statistics, analysis and information on financial services in the British Virgin Islands in the first quarter of 2017. In this period, 8695 new business companies were incorporated in the jurisdiction, compared to 7,780 companies registered in the fourth quarter of 2016, and 9,456 new companies in the first quarter of the previous year. Cumulative number of BC's incorporated in the British Virgin Islands as at 31 March 2017 was 431,776. 

Also, according to the statistics of the Registry of Corporate Affairs, in the reported period 32 Private-Trust Companies and 16 Limited Partnerships were registered (27 and 20, respectively, in the same period of 2016). 

In the Insolvency Services sector, 26 fully licensed Mutual Funds were incorporated or re-registered in the first quarter of 2017. In the Insurance Services, total number of insurers as at March 31, 2017 was 172, this figure including captives and domestic.

In the sphere of International Co-operation, there were 169 enforcement matters and 16 enforcement investigations reported. 87 ongoing supervision matters were referred to LSC and related to Banking, Insolvency and Fiduciary Services, 79 were related to Investment Business, and 56 related to Insurance. Other statistics and information can be found on http://www.bvifsc.vg/.

BVI FSC Published Financial Statistics for Q4 2016

On March 17, the British Virgin Islands Financial Services Commission published forty-fifth volume of Quarterly Statistical Bulletin, providing information and statistics on financial services activities in the jurisdiction in the fourth quarter of 2016. In this period ended 31 December 2016, the Registry of Corporate Affairs reported 7,780 new company incorporations, an increase as compared to 7,766 companies registered in the third quarter of the year. By the end of 2016, cumulative number of companies was 416,784. In the reported period, there were also 37 Private Trust Companies and 17 Limited Partnerships incorporated in BVI.

According to Investment Business figures, total number of funds registered/recognized in the jurisdiction in the fourth quarter was 18, cumulative number by the end of the year 2016 being 1,614. There was 1 Mutual Fund incorporated, cumulative number being 145. As at 31 December 2016, 176 Insurers and 40 Functionaries were registered in the British Virgin Islands. 

International Cooperation statistics shows 34 formal and 9 informal incoming requests filed in the reported quarter of the year, as well as 17 outgoing requests, 89 enforcement matters and 14 enforcement investigations. Among ongoing supervision matters referred to the Licensing and Supervisory Committee, 122 related to Banking, Insolvency and Fiduciary Services, 42 related to Investment Business, and 30 related to Insurance. Cumulative total number of Trade Marks Agents registered in Q4 2016 was 22.

BVI FSC Issues 44th Volume of Quarterly Statistical Bulletin

BVI Financial Services Commission has published the forty fourth volume of Quarterly Statistical Bulletin for the third quarter of the year ended September 2016. In the reported period there were 7,766 new companies, 24 Private Trust companies and 27 Limited Partnerships incorporated in the British Virgin Islands (6,767, 23 and 25 respectively in the second quarter of 2016). Cumulative number of BVI companies as at 30 September 2016 was 447,503, also there were 1,120 Private Trust companies and 751 Limited Partnerships in the jurisdiction.

In the third quarter of 2016, three Investment Business Licences were granted, according to Investment Business statistics; also, three professional and four private Mutual Funds licences. There were 26 fully licensed insolvency practitioners in the jurisdiction in this period. 

In the sphere of Legal and Enforcement and International Co-operation, there were 29 formal incoming and 47 outgoing requests for international co-operation, 63 enforcement matters and 17 enforcement investigation cases. Ongoing supervision matters referred to LSC in Q3 2016 included 130 related to Banking, Insolvency and Fiduciary services, 98 related to Investment Business, and 28 related to Insurance.

BVI FSC Published Financial Services Statistics for Q2 2016

The BVI Financial Services Commission has issued the forty-third volume of its Quarterly Statistical Bulletin, providing for information and analysis of financial services activities in the territory for the second quarter of 2016. In the reported period, there were 6,767 new company incorporations in the jurisdiction, as compared to 9,456 in the first quarter of 2016, and 11,059 in the second quarter of the previous year. Cumulative number of companies incorporated in the British Virgin Islands as at 30 June 2016 was 430,310. Also, in the second quarter of this year 23 Private Trust Partnerships and 25 Limited Partnerships were registered in the jurisdiction.

According to Investment Business Statistics, there was 1 Investment Business License granted in Q2 2016, making cumulative number of these licenses as much as 463; 12 Approved Investment Managers licenses, 8 Professional Mutual Funds Licenses, 2 Private Licenses, 4 Incubator Licenses and 12 approved licenses were granted in this period. 

The number of Full License Insolvency Practitioners in the second quarter of the year was 24; there were 42 Formal Requests for Legal and Enforcement and International Co-operation, as well as 8 Informal Requests, 30 Enforcement Matters, and 22 Enforcement Investigations in the reported quarter.

73 Banking and Fiduciary Services, 53 Investment Business, and 22 Insurance matters were referred to the Licensing and Supervisory Committee in the second quarter of 2016. There were 4 Trust Companies inspections and 2 Insurance inspections onsite in this period. Other relevant information can be seen in the homepage of BVI FSC.

BVI FSC Published Statistical Bulletin for Q1 2016

The BVI Financial Services Commission has published the forty-second volume of its Quarterly Statistical Bulletin, providing figures and information on financial services industry in the jurisdiction in Q1 2016. According to the statistics published by the Registry of Corporate Affairs, in the announced period there were 9,456 new companies incorporated, along with 27 Private Trust Companies and 20 Limited Partnerships. The number of company incorporations is higher than in the previous quarter (Q4 2015) but lower than in the first quarter of 2015. Cumulative number of companies incorporated as at 31 March 2016 was 466,081. At that moment, there were also 1,112 Private Trust Companies and 780 Limited Partnerships registered in the BVI.

In Investment Business, 5 new Investment Business Licences were granted in the first quarter of 2016, and cumulative number of Investment Business Licences achieved 467 as at 31 March 2016. Also, 8 Professional Mutual Fund and 4 Private Mutual Fund Licences were granted in the reported period. In the first quarter of 2016, there were 23 fully licences Insolvency Practitioners in the jurisdiction.

According to Legal and Enforcement and International Cooperation statistics, there were 52 formal and 5 informal requests in the first quarter of the year, 47 Enforcement Matters and 21 Enforcement Investigations. 

In 2016, seven Trade Marks Agents were registered in the British Virgin Islands, of them 3 Individual and 4 Partnership Agents. In the first quarter of 2016, 78 new Trade Marks applications were registered in the jurisdiction.

BVI FSC Issued 40th Volume of Statistical Bulletin

The BVI Financial Services Commission has published the fortieth volume of the Quarterly Statistical Bulletin, providing statistics on financial services activities in the jurisdiction in the third quarter of 2015. According to the statistics of the Registry of Corporate Affairs, in this period 11,951 new companies were incorporated in BVI, as compared to 11,059 companies registered in the second quarter of the year, and 11,376 companies registered in the third quarter of 2014. As at 30 September 2015, cumulative number of Business Companies registered in the British Virgin Islands was 475,309.

In Investment Business sector, 1 Investment Business licence was granted in the third quarter of 2015, as well as 23 Professional and 3 Private Mutual Fund licences. As at 30 September 2015, 483 Investment Business licences, and 1,463 Professional, 484 Private and 77 Public Mutual Fund licences were granted in the British Virgin Islands.

In the third quarter of 2015, there were 25 Licenced Insolvency Practitioners functioning in the jurisdiction. According to the Legal and Enforcement and Co-operation Statistics, there were 64 International Co-operation Matters with formal requests, 6 Co-operation Matters with informal requests, 13 Enforcement Matters and 23 Enforcement Investigations. Other information, key figures and statistics on the financial services in the British Virgin Islands in the third quarter of 2015 can be found on the home page of BVI Financial Services Commission.

BVI FSC Published Financial Services Statistics for Q1 2015

BVI Financial Services Commission has published thirty-eighth volume of the Financial Services Quarterly Statistical Bulletin, which provides statistics and information on financial services activities for the first quarter of 2015. In this period, there were 12,354 new company incorporations in the jurisdiction, - this is an increase compared to 11,436 companies incorporated in the fourth quarter of 2014, but fall in number of companies registered in the first quarter of the previous year (14,062). Cumulative number of companies incorporated in the British Virgin Islands as at 31 March 2015 was 478,865. Also, there were 1,104 Private Trust Companies and 701 Limited Partnerships registered in the jurisdiction at the end of Q1 2015.

According to the Investment Business statistics, 8 Professional and 4 Private Mutual Fund licences were granted in the first quarter of 2015. As at 31 March, 2015, cumulative number of Professional Mutual Fund licences granted was 1,479, and number of Private Mutual Fund licences was 525. Also, there were 83 Public Mutual Funds and 5 Foreign Mutual Funds registered in the jurisdiction. 

In the Insurance sector, the number of insurers and functionaries has not changed since the fourth quarter of 2014; as at 31 March, 2015, the total number of 221 insurance and functionaries licences was granted in BVI.

In the areas of Legal and Enforcement and International Cooperation, there were 29 enforcement matters in the reported period (24 in the fourth quarter of 2014). Also, the Commission issued statistics regarding ongoing supervision matters reviewed by the Licensing and Supervisory Committee, and the Onsite Inspections. Further information about financial services in the BVI jurisdiction in the first quarter of 2015 can be found on BVI FSC homepage.

Thirty Seventh Volume of Quarterly Statistical Bulletin Issued by BVI FSC

The British Virgin Islands Financial Services Commission has published the thirty seventh volume of Statistical Bulletin, providing information about financial services in the BVI for the fourth quarter of the year 2014. In the three months period ended December 2014, 11,436 new Business companies were registered in the jurisdiction, according to the Registry of Corporate Affairs – compared to 13,865 companies incorporated in the third quarter of 2014, and 11,375 companies in the fourth quarter of the previous year. Cumulative number of active BVI BCs as at the December 31, 2014 was 457,971. The statistics shows the slight decrease in the number of new companies incorporated in 2014, as compared to 2013, and the decrease is more significant if compared to the peak years of 2011 and 2012.

In the sector of Investment Business, 11 new licenses were granted to Functionaries, and 28 licenses were issued to Mutual Funds. There were 2,142 Mutual Funds registered/recognised in the British Virgin Islands as at 31 December 2014.

Insolvency Services statistics shows that the total number of Licensed Insolvency Services Practitioners in the fourth quarter of 2014 was 26. In Insurance Services sector, total cumulative number of insurance and functionaries licenses granted at the end of the period was 224.

In the sphere of Legal International Cooperation, in the fourth quarter of 2014 there were 18 international cooperation matters requiring disclosure of non-public information, 2 informal requests and 24 enforcement matters. Further information concerning ongoing supervision matters, referred to the Licensing and Supervisory Committee, the number of concluded onsite inspections and other statistics can be found on the BVI FSC homepage.

BVI FSC Issued Regular Quarterly Statistical Bulletin

Last week, the thirty-fourth volume of the BVI FSC Quarterly Statistical Bulletin was issued by the Commission, providing statistics and analysis about financial services industry in the BVI jurisdiction for the first quarter of 2014. According to the Registry of Corporate Affairs, the number of companies incorporated in this period increased to 14,062, from 11, 376 in the fourth quarter of 2013, the number of Private Trusts was 54 in the first quarter of 2014 (48 in Q4 2013 and 30 in Q1 2013), and there were 28 Limited Partnerships registered (24 in Q4 2013 and 15 in Q1 2013). At March 31, 2014, cumulative number of incorporations was 482,087, including all active companies.

According to the statistics provided by Investment Business industry, in this period 3 new Investment Business licences and 9 Approved Investment Managers licences were granted. In the Mutual Funds sector, 21 professional and 4 private licences were granted in the first quarter of 2014 (33 and 5 licences, respectively, in the previous quarter). 

In Insurance industry, 3 new licences were granted to captive insurers in the first quarter; cumulatively there were 143 captive insurers and 37 domestic insurers as at 31 March 2014.

By Legal and Enforcement and International Co-operation statistics, in the reported period there were 24 International Co-operation Matters requiring the disclosure of non-public information, 10 International Co-operation Matters requiring the disclosure of public information, and 32 Enforcement Matters. Among the ongoing Supervision Matters Referred to Licensing and Supervisory Committee in Q1 2014, there were 96 Banking and Fiduciary Services matters, 191 Investment Business matters, 99 related to Insurance, and 3 to Insolvency Services industry.

BVI FSC Issued Guidelines for Authorised Representatives under SIBA Act

Last week, BVI FSC published a document named ‘Guidelines for Authorised Representatives Under the Securities and Investment Business Act (September 2013)’, where provided information and guidelines about functions of Authorised Representatives, their qualifying procedure, reporting requirements, and other issues. The document, published on the home page of the Commission, was approved by the Board of Commissioners on 27 August, and issued by the FSC on 10 September, 2013.

In accordance with the Securities and Investment Business Act, 2010 (“SIBA”), every licensee and public, private, professional or recognized foreign fund is required to appoint an Authorised Representative, who will act as the main intermediary between the licensee or fund and the BVI FSC. The issued Guidelines define the procedures and the proper criteria for qualifying to act as an Authorised Representative, how an application to act as an Authorised Representative must be made, and submitted to the Commission. They also inform about the beneficial ownership structure of an Authorised Representative to be certified and properly supervised by the Commission. 

It is provided by the Guidelines that a person certified as an Authorised Representative must be independent, meaning, for example, that it may not carry out any other services except for those associated with the provision of services as an Authorised Representative. Also, an Authorised Representative must be based in the British Virgin Islands, and everyday functions of the Authorised Representative must be carried out by individuals resident in the Territory.

The Guidelines state the functions and responsibilities of an Authorised Representative, as outlined in SIBA, human resource requirements, and those concerning general reporting and financial statements.

MOU with ESMA Signed by 25 European Securities Regulators

According to the press release issued by the British Virgin Islands Financial Services Commission, twenty-five European securities regulators signed Memorandum of Understanding (MOU) concerning consultation, cooperation and the exchange of information related to the supervision of Alternative Investment Fund Managers with the BVI FSC.

The MOU signed in May 2013 was negotiated and approved by European Securities and Markets Authority (ESMA), and provided for the supervision of alternative investment funds, including hedge funds, private equity funds and real estate funds. The signings ensure that the BVI Mutual Fund Industry will be able to market its products within the European Union.

It was stated in the press release that the Commission had been negotiating with ESMA since April 2012, and through its participation in the process, is confident that the MOU represents a balanced approach, and is pleased to have executed the agreements which demonstrate the recognition and importance of BVI funds in the global industry.

BVI FSC Published Quarterly Statistics for Period Ended March 2013

The British Financial Services Commission has published the regular volume of its Quarterly Statistical Bulletin, providing statistics and analysis of financial services industry activities in the jurisdiction in the first quarter of the year, ended March 31, 2013. According to the information of the Registry of Corporate Affairs, 16,666 new companies were incorporated in this period, as compared to 14,783 in the fourth quarter of 2012, and 17,865 in the first quarter of 2012. Cumulative number of active companies incorporated in the BVI at the end of Q1 2013 was 482,747. Also, there were 565 Limited Partnerships and 1,061 Private Trust Companies registered in BVI by the end of the reported period.

Banking and Fiduciary Services sector shows the following figures for commercial banks in the first quarter of 2013 (in US$ thousands): total assets made $2,436,445, deposits made $1,809,321, total shareholders’ equity was $416,240, operating income was $24,982, and net income was $13,673. 

In Investment business, 10 new Investment Business Licences were granted in the first quarter of the year (6 in Q4 2012, and 16 in Q1 2012), and 39 Mutual Funds were licensed (27 in Q4 2012 and 32 in Q1 2012). Cumulative number of Investment Business Licences as of 31 March 2013 was 530, and cumulative number of Mutual Funds was 2303.

According to Insolvency Services statistics, total number of Insolvency Practitioners in Q1 2013 was 23, the same as in the fourth and the first quarters of 2012. In the Insurance business sector, two insurance licences (1 captive and 1 domestic) were granted in the reported period, making the cumulative number of licences in this industry to achieve 229. 

As concerns Legal and Enforcement and International Cooperation statistics, there were totally 32 Enforcement Actions during the first three months of the year, including Advisory Warnings, Directives, Administrative Penalties, etc. Other information, including statistics on Ongoing Supervision and Onsite Inspections, can be found on the website of BVI FSC.

BVI FSC Signs Agreement with the European Securities and Markets Authority

The European Securities and Markets Authority (ESMA) has approved the co-operation agreement between the British Virgin Islands Financial Services Commission and EU securities regulators. The Memorandum of Understanding allows the BVI Mutual Fund Industry to market its products in the European Union and to EU investors. It provides for the supervision of alternative investment funds, including hedge funds, private equity funds and real estate funds.

 

Before signing the MOU with the ESMA, the Financial Services Commission had discussions with it concerning the European Union’s Alternative Investment Fund Managers (AIFMs) Directive, the draft version of which was issued by the European Commission in 2009, and which is focused on creating a comprehensive regulatory and supervisory framework as well as common regulatory standards for all European AIFMs.

 

The Memorandum of Understanding between the BVI FSC and ESMA is to a large extent based on the IOSCO Multilateral Memorandum of Understanding. The Commission has been in negotiations with ESMA since April last year.

 

It is said in the press release published by the Commission that “the MOU between the FSC and EU securities regulators is further evidence that the FSC remains committed to fulfilling its international obligations relating to information exchange and combating illicit activity that may involve the use of regulated financial services structures. In addition, it demonstrates the recognition and importance of BVI funds in the global funds industry.”

 

Managing Director/CEO of the FSC Robert Mathavious said in his comments that “the Commission looks forward to working with ESMA and the EU countries ensuring that the BVI continues its commitment to meeting its international obligations and standards.”

 

BVI FSC Issued 29th Volume of Quarterly Statistical Bulletin

Twenty-ninth volume of Quarterly Statistical Bulletin was issued by the British Virgin Islands Financial Services Commission, providing statistics and information on the financial services activities in the territory in the fourth quarter of 2012. According to the statistics of the Registry of Corporate Affairs, 14,783 new companies were incorporated in BVI during this period, as compared to 16,251 companies in the third quarter of 2012, and 12,974 in the fourth quarter of 2011. Cumulative number of companies newly registered in the BVI was 459,005 as at 31 December 2012. In the fourth quarter of 2012, 36 Limited Partnerships and 21 Private Trust Companies were registered.

According to Banking and Fiduciary services statistics, total assets of BVI-registered commercial banks in the fourth quarter of 2012 were $2,472,3mln; deposits were $1,827mln; total shareholders’ equity $400,7mln; net interest income was $44,3mln.

In Investment Business sector, 6 new Investment Business Licences were granted in the reported period. In Mutual Funds sector, 27 new licences were issued, of which 19 are professional and 8 are private licences. The Bulletin includes year-by-year statistics, from the fourth quarter of 2009 to the fourth quarter of 2012, showing the dynamics of how cumulative number of Active Mutual Funds was changing in this period. From Q4 2009 to Q4 2012, the number of Active Public Funds decreased from 216 to 151; the number of private funds decreased from 816 to 577; and the number of professional funds fell from 1,905 to 1,590.
There were 23 Insolvency Practitioners in the British Virgin Islands by the end of the fourth quarter of 2012.

Also, in the fourth quarter of 2012 there were 55 Enforcement Matters in the sector of Legal and Enforcement and International Co-operation. Ongoing Supervision Matters Referred to LSC included 103 matters in Banking and Fiduciary Services, 259 in Investment Business, 139 in Insurance and 10 in Insolvency Services.

BVI FSC Issued Statistical Bulletin for Second Quarter of 2012

Last week, the British Virgin Islands Financial Services Commission published Quarterly Statistical Bulletin, providing information and analysis of financial services activities in the BVI jurisdiction. The newly issued Volume 27 includes statistics for the second quarter of 2012.

According to the information of the Registry of Corporate Affairs, in the second quarter of the year 15,200 International Business Companies and 15 limited partnerships were incorporated in the BVI, as compared to 17,865 companies and 18 limited partnerships registered in the first quarter of 2012. Cumulative number of companies incorporated in the BVI as at 30 June 2012 was 447,801, and the number of limited partnerships was 442.

In the Banking and Fiduciary Services sector, one Money Services/Financial Business licence was issued in Q2 2012. The Banking sector statistics for commercial banks showed the following: total assets – $2, 39 million, deposits - $1, 73 million, net income - $11, 6 million, profit margin – 38,57%.

In Investment Business Sector, 10 new Investment Business Licences, 17 professional and 5 private licences for Mutual Funds were granted in the second quarter of the year. Cumulative number of investment business licences as at 30 June 2012 was 532; total number of professional mutual funds was 1621. Cumulative number of active mutual funds was lower in the reported second quarter of 2012, as compared to the same periods of 2011, 2010 and 2009.

In Q2 2012, total number of insolvency practitioners was 24 (25 in Q2 2011, 20 in Q2 2010). According to insurance statistics, one captive insurance licence was granted in this period.

According to Legal and Enforcement and International Cooperation statistics, total number of international cooperation matters in the second quarter of 2012 was 42 (42 in Q1 2012, and 44 in Q2 2011). Among ongoing Supervision Matters reviewed by the Licensing and Supervisory Committee, 110 referred to Banking and Fiduciary Services sector, 446 referred to Investment Business sector, and 60 referred to Insurance sector.

FSC Issues Public Announcement on BVI Mutual Fund

The British Virgin Islands Financial Services Commission issued public statement informing the general public, including investors and creditors, that Advantage Finance European Futures Fund Ltd is no longer recognised by the FSC as a private mutual fund.

According to the document published by the Commission, the Fund was incorporated in the territory of the British Virgin Islands on 5 March, 1999. It was formerly recognised by the Commission as a private mutual fund to conduct mutual fund business within the territory. On 1 November, 2008 it was struck off the company register maintained by the BVI Registrar of Corporate Affairs, for the non-payment of company registration fees.

The Certificate of recognition of Advantage Finance European Futures Fund Ltd was cancelled on 15 December, 2010 as a result of non-payment of its recognition fees in 2008, 2009 and 2010. At the same time, the Fund has been hosting and maintaining a website at www.advantage-finance.com and giving the impression that it is still active and carrying on investment business.

The FSC informed that it will provide an update on further developments on this matter.

Public Funds Code Issued by the Commission

In the end of December, the Public Funds Code, 2010 was issued by the British Virgin Islands Financial Services Commission. Consultation draft of the Public Funds Code was published in June 2010. The legislative document shall come into force on the 31st of March, 2011. As the Public Code is issued under SIBA, it has the status of delegated, or subsidiary legislation. As subsidiary legislation, the Public Funds Code has the status of law in the British Virgin Islands.

Part I of the legislative document names the four general principles for public fund business: integrity, management and control, keeping interests of investors, and relationship with Commission in an open and cooperative manner. Part II concerns operation of Public Funds, including the following issues:
- corporate governance (the number of directors of public funds, responsibility of governing body for business and affairs of the public fund);
- establishment of policies and procedures, including the cases of conflicts of interest;
- segregation and safekeeping of fund property, including custodial arrangements and procedures, issue and redemption of fund interests;
- valuation and pricing including establishment of valuation policy and procedures and independence of valuation process, pricing and price overrides, NAV reports, disclosure to investors;
- dealing and managing by functionaries;
- record keeping;
- relationship and reporting to the Commission;
disclosure to investors and changes to investor rights.

In the Schedule 1 of the Public Funds Code it is stated what kind of information must be contained in prospectus of public fund. Schedule 2 names events and changes to be notified to the Commission, and time limits for notification for each event.

BVI FSC Announced Formation of SIBA Advisory Committee

The BVI FSC announced the formation of the Securities, Investment Business and Mutual Fund Advisory Committee (SIBA Advisory Committee). This is the statutory committee that has the responsibility to review the Securities and Investment Business Act, 2010, which was enacted in the House of Assembly in April, 2010 and came into force in May, 2010, and recommend changes to the regulatory regime that governs securities, investment business and mutual funds in the British Virgin Islands. The Chairman of the SIBA Advisory Committee is Mr. Ross Munro, Partner and Head of Investment Funds and Regulatory at Harneys law firm.

The FSC's Director, Investment Business, Brodrick Penn, commented on the formation of the SIBA Advisory Committee, saying that “The Commission is pleased to continue its partnership with the private sector through the formation of the new advisory committee, which will play a similar role to its predecessor; the Mutual Fund Advisory Committee. We are equally pleased to have a diverse range of professional expertise and personalities working together with the Commission to advise on matters relating to the development of the securities industry”.