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Simon Schilder
Partner | Legal
British Virgin Islands
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Simon Schilder
Partner
British Virgin Islands
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With the enactment of the Securities and Investment Business Act, 2010 (“SIBA”) in the BVI, which came into force on 17 May 2010, the regulation of the BVI’s financial services industry has undergone a number of significant changes which will be relevant to users of BVI vehicles as investment managers of funds or other structures.
To facilitate the smooth transitioning of existing BVI entities into the new regulatory regime, transitional provisions exist under SIBA and the secondary legislation which accompany it, the Mutual Funds Regulations, 2010 and the Regulatory (Amendment) Code, 2010. Importantly, the regulatory changes brought about by SIBA will affect both existing licensed investment managers and also investment managers previously not required to be regulated.
The regulatory regime applicable to BVI licensed investment managers has not substantially changed as a consequence of SIBA, with many of the “changes” representing the codification of existing FSC regulatory policies. Following the enactment of SIBA, existing licenses to provide investment management services under the Mutual Funds Act, 1996 were automatically deemed from 17 May 2010 to be a Category 3 Sub-category B investment business licenses under SIBA. The key changes as it relates to existing licensed investment managers are as follows:
Importantly, when considering the appointment of new directors, senior officers or a change in persons holding a “significant interest”, attention will need to be paid to the experience and qualification of those individuals so that they pass the FSC’s “fit and proper” test;
To the extent that an existing licensed BVI investment manager is also providing investment management or other services constituting investment business to non fund structures and/ or other investment accounts (eg close-ended funds; managed accounts etc), such activities will now be caught by SIBA and so will require it to have obtained an extension to its existing license by 12 October 2010 (being the end of the transitional period).
The principal regulatory change introduced by SIBA is that it will bring BVI entities currently providing investment management services to non fund entities (which are currently unregulated entities) within the new regulatory regime, so requiring them to be licensed by the FSC.
For such entities, unless their business activities fall within one of the activities for which an exclusion or exemption applies, they will now be required to hold an investment management license under SIBA and need to be licensed as such by 12 October 2010.
Simon Schilder
Partner | Legal
British Virgin Islands
Simon Schilder
Partner
British Virgin Islands
Nicholas Plowman 包乐文
Partner 合伙人 | Legal
Hong Kong
Nicholas Plowman 包乐文
Partner 合伙人
Hong Kong
Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.
This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.
Regulatory information can be found under Legal Notice
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