Securities and investment business is regulated in BVI by the Securities and Investment Business Act (SIBA) 2010. SIBA regulates “investment business” in or from with the BVI and provides that no person may carry on “investment business” of any kind in or from within the BVI unless they are licensed by the BVI Financial Services Commission (“FSC”) to carry on such investment business.
The types of activity constituting investment business are broadly defined in Schedule 2 of SIBA as follows:
The following are the categories
Category 1: Dealing in Investments
Category 2: Arranging Deals in Investments
Category 3 Investment Management
Category 4: Investment Advice
Category 5: Custody of Investments
Category 6: Administration of Investments
Category 7: Operating an Investment Exchange
The entity making the application is a BVI company under the BVI Business Companies Act 2004.
Company includes:
a) a company limited by shares;
b) a company limited by guarantee that is not authorised to issue shares;
c) a company limited by guarantee that is authorised to issue shares;
d) an unlimited company that is not authorised to issue shares; or
e) an unlimited company that is authorised to issue shares.
• The license will need at least 2 (two) natural person Fit and Proper Directors of any jurisdiction.
• A license shall not appoint a director or senior officer without the prior written approval of the Commission.
• The director must pass the fit and proper criteria
• The license will need at least one shareholder.
• Corporate shareholding is allowed and 100% foreign ownership is permitted.
A license shall not, without the prior written approval of the Commission:
a) open, maintain or carry on business through a branch or a representative or contact office outside the Virgin Islands; or
b) incorporate, form or acquire a subsidiary.
A license shall at all times maintain such professional indemnity and other insurance as may be prescribed.
Unless the license has a significant management presence in the BVI, it will be required to appoint a local “authorized representative”, which will be a BVI entity or individual certified by the FSC for this purpose.
The relevant license shall appoint and at all times have an auditor for the purposes of auditing its financial statements. The auditor must be:
• qualified under the Regulatory Code to act as the auditor of a license
• consent to act as auditor
Where the Regulatory Code prescribes a minimum capital resource requirement with respect to a category or sub-category of license, a licensee holding a license in such category or sub-category shall ensure that at all times its capital resources are maintained in an amount not less than the prescribed minimum.