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Update – A New Regulatory Regime in BVI: SIBA 2010

September 2010 Anton Goldstein

The Securities and Investment Business Act, 2010 (SIBA) was brought into force in the British Virgin Islands (BVI) on May 17, 2010 (other than Part II dealing with the public issue of securities), augmenting BVI’s regulatory regime to ensure it complies with international best practice.

The most significant change implemented by SIBA is that it requires any person carrying out “investment business” in or from within the BVI to obtain a licence from the Financial Services Commission.

SIBA distinguishes between those who are already carrying on investment business prior to May 17, 2010 and those that are not. If a person was already carrying on investment business prior to May 17, 2010, a licence to carry out investment business will not be required until the later of:

  • December 30, 2010 (the “application deadline”); or
  • if an application for a licence is made before the application deadline, the date the application for a licence is determined (including as a result of any appeal).

If a person was not already carrying on investment business prior to May 17, 2010, a licence will be required prior to carrying on investment business.

SIBA establishes four broad pillars of regulation, with the first three almost entirely new in BVI:

  • investment business;
  • the public issues of securities;
  • market abuse; and
  • mutual funds.

The fourth area of regulation (mutual funds) is already well established and SIBA brings about limited changes, described in a separate note.

This article provides a brief overview of the new legislation and some of the key changes which it introduces. A version was published in The Lawyer and is available here.

 

To continue reading full articles in PDF format:
Update – A New Regulatory Regime in BVI: SIBA 2010

 


Anton Goldstein
Partner

British Virgin Islands   +1 284 852 1119


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