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.