Harneys Offshore Law Firm Recognised as Leader in Private Wealth Market

BVI offshore law firm Harneys has become a leader in the private wealth market for the third consecutive year, being recently ranked in the 2019 Chambers High Net Worth (HNW) Guide. The British Virgin Islands team remained the sole firm recognised in the Band 1 ranking for offshore trusts, and the Cayman Islands team remained with its Band 2 ranking.

Partner Henry Mander, who is leading the trusts teams within the Private Wealth department, said in his comments: “Harneys has an outstanding reputation for its private wealth work in the BVI; our ranking and the quality of our client base is testament to our success.”

Harneys’ trusts practice offers advice to individual and commercial clients on the establishment, administration and structuring of all types of BVI, Cayman Islands and Cyprus trusts. The company provides wealth management solutions to a wide range of clients from different countries.

BVI Offshore Law Firm Launched New York City Office

O-Neal Webster, full-service law firm headquartered in Tortola, BVI, in October announced its expansion to New York City, New York. It became the first BVI law firm to establish physical presence in the city; it also has an office in London, UK.

The newly established office in NY is headed by Kerry Anderson, former O’Neal Webster Managing Partner and the head of law firm’s Investment Funds and Regulatory Department. The office will provide advice on BVI law in investment funds and finance, corporate and commercial, property, business, trusts and estates, insolvency and restructuring. By words of the head of NY office, seminars and events will be regularly hosted there, to highlight the benefits of doing business with and in the BVI, the world’s leading jurisdiction for company incorporations.

The office will serve both US and global clients; US client base of the BVI firm includes major law and accounting firms, fund managers, family offices and many others.

BVI Finance Executive Director Lorna G. Smith commented: “O’Neal Webster’s opening of an office in New York, the global hub of international finance, is a significant milestone for the firm and the entire BVI jurisdiction… For the first time, clients will receive advice on BVI funds and private client activities directly within the U.S., thereby facilitating the speed and effectiveness for entering global capital markets. We are very proud of our member firm’s accomplishment.” 

BVI Faces Consequences of ‘Panama Papers’ Leak

BVI authorities said that the leak of confidential data from the Panama law firm Mossack Fonseca specializing in offshore financial services, which included about 11 million documents, prompted them to look for any breaches of financial regulations in the Caribbean territory. BVI-registered companies play the most important role in the leaked records, the same way as BVI takes its prominent place in the global offshore financial industry.

BVI financial regulating services have issued a statement where they say that they will ‘pursue a thorough investigation through the BVI's competent authorities, and further action will be taken, where necessary’.

Last year, there were 9,388 company incorporations in the BVI, down from 11,436 the previous year. The BVI is said to have ‘rigorous’ regulatory oversight of its financial sector and adhere to international standards.

BVI Maintains Leading Position as to Company Incorporations Activity

Global provider of offshore legal, fiduciary and administration services Appleby has published On the Register report, which provides information on company incorporations in offshore jurisdictions in the first half of 2014.

According to the report, total number of company registrations increased in offshore jurisdictions by 4%, compared to the previous six month period, and made 46,455 new companies. The British Virgin Islands remains dominating jurisdiction as to the volume of new company incorporations: in the first half of the year, 25,533 new companies were registered in the jurisdiction, which is a 6% increase on the previous six months. The BVI maintains far ahead of its follower – the Cayman Islands, which had the largest increase in new company incorporations in this period.

By words of Farah Ballands, Partner and Global Head of Fiduciary & Administration Services at Appleby, “This year is off to an encouraging start, with levels of active companies on the offshore company registers continuing to hold steady.”

The Role of BVI Financial Centre Discussed at China Offshore Summit

BVI House Asia made the presentation named ‘BVI 2.0 – Taking it to the Next Level’, during the China Offshore Summit which was held in Beijing from May 28 to 29, and was visited by more than 300 financial intermediaries, corporate service providers, international trust companies, bankers and lawyers from China. During the presentation, the director of BVI House Asia Elise Donovan spoke about the BVI companies’ use in China and their role today in facilitating cross-border transactions in the market.

British Virgin Islands, as one of the leading financial centres for international investments, remains the top jurisdiction for inward and outward FDI flows in China. It is a connecting link for East and West markets, assisting Chinese companies to access Western capital or technology through acquisitions and listings on foreign stock exchanges. 

Another presentation was made by Harney Westwood & Riegels’ Asia managing partner Jonathan Culshaw, under the name ‘Same same… but Different, Differences between BVI and Cayman Companies’. He outlined advantages of both offshore jurisdictions, among them flexibility in structuring, neutrality, and legal and professional competence in the China/Asia market, but noted that “the BVI is better value for money.”

BVI Presents on China Offshore Summit

Martin Crawford, chief executive of Offshore Incorporations Ltd, has referred to the status of the British Virgin Islands jurisdiction as the leading one for Chinese investors and entrepreneurs, during the China Offshore Summit recently held in Shanghai and attended by more than 350 Chinese wealth planners, bankers, lawyers, and offshore professionals.

In his presentation he named the reasons why the BVI is the most complete jurisdiction for the needs of Chinese investors, among them opportunities for non tax-driven structures such as asset protection, wealth management, funds management, investment holdings, trading, special purpose vehicles, and listing vehicles for IPOs. It was stated by him as an example that 60 per cent of the multi-million dollar London properties, owned by Chinese citizens, were purchased through BVI entities.

The chief executive of one of offshore industry leaders made his presentation on behalf of the BVI International Finance Centre (BVI IFC), platinum sponsor of the summit. Christopher McKenzie, representative of BVI law firm O'Neal Webster, promoted BVI trusts on a panel discussion titled Strategies for Family Business Succession, while Janice Skelton of Newhaven Corporate Services described the benefits of the BVI on a panel on Selecting Jurisdictions for Chinese Private Wealth Management. Barry Mitchell and Charlie Sparrow of law firm Maples and Calder presented on the benefits of BVI Trusts for Asian IPOs. On the second day, there was a two-hour special feature on the BVI jurisdiction, which included presentations and panel discussions under the theme BVI: The Complete Offshore Solution. There was also an update on BVI House Asia, established in Hong Kong this year.

BVI Office in Hong Kong Launches Financial Services Seminars

BVI House Asia, which was opened in Hong Kong by the British Virgin Islands in September this year, launched a series of seminars focused on the financial services products of the offshore jurisdiction.

The first seminar was devoted to BVI trust and estate law, and was led by Christopher McKenzie - a partner from O'Neal Webster law firm, who has chaired the STEP (Society of Trust and Estate Practitioners) committee responsible for making the proposals to the BVI government to make trust innovations of 2003 and 2013. Case studies on BVI trusts in practice were also presented by Maples and Calder’s lawyers. 

The seminar focused on the unique features of BVI trust legislation, including VISTA (Virgin Islands Special Trusts Act) that creates a special trust regime and is very popular in Asia and particularly in Hong Kong. Another focus of the presentations was the PTC Regulations, enabling unlicensed BVI companies to be set up as a confidential way of holding trust assets.

According to the director of BVI House Asia, Lorna Smith, this seminar is a precursor to the type of activities that will be put on by BVI House Asia in Hong Kong and Asia to provide updates and education on BVI's financial services products to the practitioners in the region.

Deloitte Announced Merger of BVI, USVI and Bermuda Offices

In the end of August, international accounting and financial consulting firm Deloitte announced the merger of its BVI, USVI, and Bermuda practices. It is said to bring enhanced services to clients and greater access to Deloitte professionals who provide insights and solutions to complex business challenges.

The company also informed that the practices will continue to operate as Deloitte & Touche Services Ltd, from the current offices in the British Virgin Islands and US Virgin Islands, providing tax, consulting, financial advisory and audit services. The company does not plan to close offices, and each of them will have local leadership. 

The merger combination, effective from August 26, coincides with the retirement of BVI/USVI office managing partner Mark Chapman, who will continue as a consultant to the company through the end of October. Mark Chapman joined Deloitte BVI in 1995, and focused on offshore enterprises in the financial services sector. Now the British Virgin Islands and US Virgin Islands offices will be operated by Carlene Romney, who is specialist in financial services audits, and Richard White, an experienced professional with over 13 years of working in practice and industry as a chartered accountant.

Speaking about the merger of practices, Carlene Romney stated that Deloitte’s clients, communities and professionals will benefit from it, as the company will be able “to deliver additional services, especially in areas such as tax, restructuring, and risk management.”

BVI Government Signed Contract with LGS and Associates

The Government of the British Virgin Islands signed a contract worth US$100,000 with a financial industry consultancy firm LGS and Associates, which is headed by the financial industry expert Mrs. Lorna Smith. 

The information about the signing of the contract in December 2012 was confirmed by the Financial Secretary Mr. Neil Smith and by Mrs. Smith herself, who stated that the contract is not a new assignment since she has been providing services to the BVI governments, including under the Virgin Islands Party administration. 

Mrs. Smith recently attended the OECD Global Forum on Transparency and Exchange of Information. She also took part in the negotiations concerning tax treaties between OECD countries and OECS countries, all of which have been put on the OECD ‘white list’. She also takes the post of Chairperson of the Financial Services Business Development Committee, whose task is to maintain the image of the British Virgin Islands as a top international finance centre, identifying new and emerging markets and recommending legislation for introduction and support of new and existing products and services.

Mrs. Smith assisted in the BVI passing phase I review process on global transparency and exchange of information for tax purposes, and, in her own words, continues to work to ensure that the BVI moves phase II of the review process.

Harneys Issued Second Edition of “British Virgin Islands Commercial Law”

In the last weeks of 2012, the international offshore law firm Harney Westwood & Riegels announced the publication of the 2nd edition of practitioner’s textbook ‘British Virgin Islands Commercial Law’. Since it was first published in February 2012, it remained the first and only textbook focusing solely on British Virgin Islands law and practice, comprising Harney’s expertise as the oldest and largest law firm in this offshore jurisdiction.

The publication is an authoritative source of information and advice for lawyers and other professionals who work with corporate structures and transactions, providing a deep analytical view of BVI legal background, related to business companies, partnerships, credit and security, investment funds, insolvency, dispute resolution, taxation and trust legislation. 

There are some changes in the law of the British Virgin Islands that occurred since the 1st textbook was edited, including the passing of the BVI Business Companies (Amendment) Act 2012 was passed and the accompanying BVI Business Companies Regulations 2012.

BVI Offshore Law Firm Advised on USD 1.1bn Debt Conversion

British Virgin Islands office of international offshore expert firm Ogier has adviced CEMEX – one of the world's largest cement and building materials makers, listed on New York and Mexican stock exchanges, – on its most recent notes transaction valued at USD 1.1 bn, which closed at the end of March. CEMEX completed the exchange of approximately 48% of the outstanding perpetual debentures for new senior secured notes, which will mature in 2019. This transaction has reduced CEMEX's total debt by USD131m.

Ray Wearmouth, Managing Partner of Ogier BVI, has said: “Ogier BVI has built our offering around providing high quality, seamless and fully integrated services across practices and geographies and our most recent work with CEMEX is an excellent legal and fiduciary example of those capabilities being fully utilised for a blue-chip client.”


CEMEX's CFO Fernando Gonzalez said that “These exchange offers allow CEMEX to further reduce its refinancing risk and its overall indebtedness (including Perpetual Debentures), two important components in our ongoing financial strategy.”

International Law Firm Opens Offices in BVI and Singapore

International financial services provider Bedell Trust has announced plans to open new offices in the British Virgin Islands and Singapore. After this, in addition to continuing to service its European-based clients out of Jersey, company's British Virgin Islands legal team, based at Bedell Cristin Jersey, will establish physical presence both in the BVI and Singapore. The BVI law team will also closely co-operate with the Channel Islands offices in providing multi-jurisdictional financial services solutions to customers from Asia.

Bedell Trust will also form an affiliation with an established BVI corporate management services company to support the provision of BVI corporate services to its clients. The company announced that the developments "are central to the Bedell strategy to provide multi-jurisdictional legal and fiduciary services in the key locations where our international client base demands them”.

New Lawyers Join Harney's Hong Kong Office

The British Virgin Islands-based offshore law firm Harneys Corporate Services Limited, providing administration services to the BVI corporations, has increased the number of lawyers in its HK office, as a part of ongoing expansion of its Asian practice.

The hire of the three new lawyers brought to eight the number of lawyers in the firm's Hong Kong office. Cheng Cheng Tan joined the BVI firm from Rahmat Lim & Partners, where she was a partner. Her spheres are banking and finance as well as corporate and commercial law, with a focus on securities listings, joint ventures and cross-border mergers and acquisitions. Kane Guo, who joined Harneys from another leading international offshore law firm, specializes in M&A, FDI and banking. Kane's practice areas include corporate and commercial, investment funds and private equity. The third lawyer, Zhao Feifei, practices banking and finance, corporate and commercial law.

The head of Harneys' Hong Kong office, Paul Law, welcomed the new hires to the office, saying that the new lawyers “will add both onshore and offshore experience and regional perspectives to the team.”

Approval of Alternative Investment Fund Managers Directive to Launch Fund Industry in BVI

The Alternative Investment Fund Managers Directive, final terms of which were approved by the European Parliament on November 11, 2010, allows for the distribution of non-EU funds to professional investors in the European Union. There are two methods of distribution, one of them, the private-placement regime, has been traditional in the EU for non-EU funds, and it will remain in place until 2018. It is proposed that in 2015 it will transition to allow full access to EU passport marketing regime to non-EU funds on the same terms as EU funds. EU funds will become eligible for a passport in 2013. This method, along with the alternative method of the EU marketing passport system, will be subject to similar conditions. These conditions include the need for supervisory co-operation agreements between the regulator of the EU member state in which a fund is being marketed and the regulator of both the fund manager and the fund.

Walkers, the leading international financial centre law firm, welcomed the confirmation of the Alternative Investment Fund Managers Directive and the removal of uncertainty for non-EU fund managers marketing non-EU funds in the European Union. According to Walkers, this is a very positive development for investment funds industry in the BVI, Cayman Islands and Jersey. Rod Palmer, partner and Global Head of Investment Funds with Walkers, said that "The confirmation that non-EU fund managers will be able to continue marketing Cayman Islands, BVI and Jersey funds to professional European investors is excellent news for the industry."

Richard May, Walker's partner based in the BVI, said that the Cayman Islands, BVI and Jersey are highly rated by the FATF in respect to their anti-money laundering regimes, so they will not have to make any changes in their funds' operations to comply with the Directive.

NY Funds Conference Proved to be Successful

The New York funds conference, which was hosted on September 23 by the International Finance Centre (IFC) and the BVI Investment Funds Association, was named a “great success” by the Executive Director of IFC Sherri Ortiz. According to one of conference participants, the event was well organized, and information was interesting and well presented.

On the conference the following presentations were provided by representatives of Conyers Dill & Pearman, Maples and Calder, Walkers, Harney´s and Ogier: State of the Funds Market, A Regulatory Approach, Litigate with Confidence and Lessons learnt for the Funds Industry from the Financial Crisis. The British Virgin Islands Financial Services Commission provided updates on the territory's regulatory regime and recent legislation initiatives.

Sherri Ortiz commented that the conference was also a “clear demonstration of how far the Territory has progressed in this sector and the extent to which our funds business has grown. There is an increasing appetite from global practitioners to understand more about the Virgin Islands, as evidenced by the call for more events of this kind.”

BVI IFC Hosts New York Funds Conference

On September 23, the British Virgin Islands International Finance Centre (IFC) and the BVI Investment Funds Association will host a conference in New York under the title "A New Era in Funds Domiciliation," where Domiciliation refers to the fixed location of a fund.

By words of the Executive Director of the BVI IFC Ms. Sherri Ortiz, the conference is a great demonstration of Territory's progress in this sector, and the extent to which BVI businesses in funds have grown. She noted that this is an excellent opportunity for them to showcase their funds expertise to international practitioners who want to know more about the British Virgin Islands.

The Executive Director said that the NY conference “promises to provide a quality programme of discussions and keynote speakers. It will provide a unique platform for an exchange of views, sharing best practice and formulation of strategies to best deal with opportunities in 2010 and 2011." She added that the event, which will be attended by leading hedge fund providers in the U.S., will include presentations from leading private sector practitioners on the following topics: State of the Funds Market, A Regulatory Approach, Litigate with Confidence and Lessons learned for the Funds Industry from the Financial Crisis.

The Conference is part of the BVI IFC's work on marketing the BVI financial services industry and promotion of the jurisdiction's reputation as a reliable financial services centre. The event will be visited by the representatives from the BVI FSC, such reputable offshore law firms as Conyers Dill & Pearman, Maples and Calder, Walkers, Harney´s and Ogier.

Harneys' HK Office Head to Lead Maples and Calder's BVI Practice in Hong Kong

The head of Hong Kong office of Harney Westwood & Riegels Michael Gagie was laterally hired by an offshore legal firm Maples and Calder, to co-lead the firm's British Virgin Islands practice in Asia. On 1 September, Mr. Gagie started work in his new post in Hong Kong office of Maples and Calder, along with Barry Mitchell. Both lawyers were living and working in BVI for some time before moving to Asia.

Since 2003, when Mr. Gagie joined Harneys, he regularly advised on listings of BVI corporations on international stock markets, including NASDAQ and AIM Market in London. By words of joint managing partner of Maples and Calder in Hong Kong Christine Chang, his arrival “could not have come at a better time as the market prepares for the BVI listings of BVI-incorporated companies on the Hong Kong Stock Exchange”.

Conyers Dill & Pearman Hires Head of the New Trust&Private Client Practice in BVI

The offshore law firm of Conyers Dill & Pearman recently hired Raymon Davern to head the new Trust & Private Client practice in the British Virgin Islands. Prior to joining the BVI office of Conyers Dill & Pearman, Mr. Davern was part of the Private Client team at one of the oldest law firms in the Cayman Islands. He has more than 10 years experience of Chancery litigation and advisory work, and another 10 he was the Lecturer in Law at King's College in London.

Raymond Davern told the press that the BVI has the potential to flourish as a jurisdiction for private clients and high net worth individuals. He spoke about the importance of the new Private Client practice, which will offer an increase in the level of choices and will be able to bring Conyers brand to private clients, as well as raise the jurisdiction's profile.

Robert Briant, Managing Partner of Conyers´ BVI office, said that the introduction of the Trust & Private Client practice in the jurisdiction extends the BVI practice of Conyers into ''a full service law firm advising on a full range of corporate, litigation and trust & private client law.”

The offshore firm has recently made a number of new hires in BVI and other countries, continuing to strategically expand through the addition of key experts.

On May 13, Conyers will host its 2nd Annual Trust Forum in London, where lawyers from BVI, Bermuda, and Cayman Islands will participate in a series of talks on multi-jurisdictional options for the international private client market.

The Commission Warns Investors on Forex Currency Trading Frauds

The BVI FSC has issued an advisory warning to investors to beware them of Foreign Exchange Currency Trading Frauds. The warning issued under Section 4 (1) (1) of the Financial Services Commission Act, 2001, informs the public that the entities professing to offer high yield and low risk investment opportunities from investments in foreign currency contracts “are normally scams”. In the opinion of the Commission, these entities may look like a new sophisticated form of investment opportunities, but in reality these are financial frauds “especially perpetrated on retail customers”.

The Commission explains that Forex scams may be widely advertised, and the customers are told that they will obtain tens of thousands of dollars in a few weeks or months. After the currency trading firms tell the customers that they can or should trade in the interbank market, or that they will do so on their behalf, customers' money is diverted or simply stolen.

It is noted in the document that the interbank market does not usually include individual or retail customers, and the claims on the possibility of trading in this market should therefore be treated with extreme caution. The public is asked to note a number of warning signs that can point at foreign exchange scam, and not to invest in them.

The BVI FSC warns that if the companies do not inform customers on the risks involved, or even mislead them, then they would be involved in illegal schemes.

BVI FSC Issues Advisory Warning No. 4 of 2009

Yesterday, the British Virgin Islands Financial Services Commission has issued an advisory warning No.4 of the year 2009. By this document, the Commission informed that A.M.B Ltd., A.M.B. Amerbank Limited, AMERBANK LIMITED and Antilles Merchant Offshore Bank are not licensed to conduct banking or offshore banking business or any financial services business in or from within the territory of the British Virgin Islands. Also, the named entities are not incorporated or registered in the jurisdiction.

The Commission advised the public to exercise caution in conducting any transactions with these entities, and reminded that they should always be contacted to verify the regulated status of any company, trying to be registered or authorised for work in BVI.

The document is issued under Section 4 (1) (1) of the Financial Services Commission Act, 2001, and signed by Managing Director/CEO of the Commission Robert Mathavious.