BVI To Amend Trust Licensing, Bank Regulation
Thursday, July 22, 2010
The British Virgin Islands (BVI) Financial Services Commission (FSC) has noted several
legislative amendments that will affect entities granted licenses in respect of
trusts regulated in the territory.
Namely, the proposed changes will amend the Banks and Trust Companies Act, 1990, and the Company Management Act, 1990.
Among the legislative amendments proposed, of particular note are powers
to enable the Commission to review licenses granted in respect of trusts regulated
in the British Virgin Islands. The move, the Commission said, is to be made
to bring the territory’s regime in line with international best standards.
The new provisions, the Commission said, would improve synergies between the
Banks and Trusts Companies Act, 1990, and the Companies Management Act, 1990.
In particular, the amendment will allow the FSC to revoke and re-evaluate licenses
granted in respect of trusts. Licenses could be altered on request or where certain factors
initiate such a move, namely: changes in the activities of the licensee; competence;
compliance culture; or other ‘relevant factors’. Other amendments
to the Acts would review vesting provisions, to address the transfer, sale or
disposition of any of a licensee’s operations.
Other proposed amendments to the BVI's regime
in respect of banks will: address policies and procedures on problem assets;
deal with asset classification, provisioning and write-offs, as well as repayment
and recovery expectations; and assert rules in respect of banks’ provisioning
and required reserves.