BVI Financial Services (Administrative Penalties) Regulations Amended by Adding Late Penalty Schedule

On November 16, 2007, the British Virgin Islands Financial Services Commission published the amendments to the Financial Services (Administrative Penalties) Regulations.

These amendments are published to update the previous version of the BVI Financial Services (Administrative Penalties) Regulations, which was gazetted on 14th December, 2006 and came into effect on 15th January, 2007. The amendments were gazetted on 27th September, 2007 and came into effect on 31st July, 2007.

Administrative Penalties Schedule is redesigned as Schedule 1 and Late Penalty Schedule (Schedule 2), and completely new subsection 5A (describing late penalty Schedule 2) is introduced by the amendments 2007:

5A. (1) The Commission may impose an administrative penalty on a licensee in accordance with Schedule 2 where the licensee fails to pay
(a) any fee or charge payable under the Act or any regulatory legislation; or
(b) any penalty payable under these Regulations on or before the date upon which the fee, charge or penalty is due for payment.
(2) Where the Commission decides to impose a late payment penalty on a licensee under subregulation (1), it shall send a penalty notice to the licensee stating
(a) the fee,charge or penalty in respect of which the penalty is imposed; and
(b) the amount of the proposed penalty calculated in accordance with Schedule 2.
(3) Subject to regulation 8(6), a licensee that receives a penalty notice shall pay the penalty stated in the notice to the Commission within fourteen days of receipt of the notice.”

Late Penalty Schedule 2 is introduced in the following redaction:

Description of Fee/Penalty	Penalty payable
1. Penalties for late payment of fee or charge payable under any regulatory legislation
For the late payment of a fee or charge payable under any regulatory legislation
(a) Where the fee or charge is paid 1-30 days after due date	20% of fee or charge payable, subject to a minimum of $80.00
(b) For each additional period of 30 days, or any part thereof, during which fee or charge remains unpaid	10% of fee or charge payable, subject to a minimum of $20.00
	The maximum penalty payable under paragraphs (a) and (b) shall be 100% of the fee or charge payable
2. Penalty for late payment of administrative penalty, other than late payment penalty)
For the late payment of an administrative penalty imposed under Schedule 1
(a) Penalty paid 1-30 days after due date	10% of penalty payable
(b) For each additional period of 30 days, or any part thereof, during which penalty remains unpaid	10% of penalty payable
	The maximum penalty payable under paragraphs (a) and (b) shall be 100% of the administrative penalty payable”

Other sections as well as Schedule 1 of the BVI Financial Services (Administrative Penalties) Regulations are amended accordingly.

Brian Obvi,
Offshore Analyst

Article any source