BVI Dominates by Volume of New Offshore Company Incorporations

According to a report from Appleby Global, one of the world’s largest providers of offshore legal, fiduciary and administration services. the British Virgin Islands jurisdiction “continues to dominate” by the volume of new offshore company registrations, with a six-fold lead over the Cayman Islands, which is the nearest comparator of the BVI.

The Group’s latest On the Register Report is devoted to the analysis of company incorporations in the British Virgin Islands, Cayman Islands, Bermuda, the Crown Dependencies, Mauritius and Seychelles, and how activity in these offshore jurisdictions compares to financial centres such as the UK and Hong Kong. 

Appleby stated in the release that the number of new offshore company registrations decreased both in the BVI and the Cayman Islands in the second half of 2012, with a 12% drop to 29,225 new company registrations in the British Virgin Islands, and 13% drop to 4,176 new registrations in the Cayman Islands. Appleby reported an overall decrease of 3.6% in company incorporation activity in the major offshore markets in the second half of 2012, indicating the impact of uncertain global economic conditions on the majority of the offshore markets.

By words of Farah Ballands, the partner and global head of fiduciary & administration services at Appleby, “There are signs that 2013 will be a watershed year in terms of seeing a universal return to pre-2009 activity levels across the offshore jurisdictions.”

Brian Obvi,
Offshore Analyst

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BVI FSC Published Quarterly Statistics for Period Ended March 2013

The British Financial Services Commission has published the regular volume of its Quarterly Statistical Bulletin, providing statistics and analysis of financial services industry activities in the jurisdiction in the first quarter of the year, ended March 31, 2013. According to the information of the Registry of Corporate Affairs, 16,666 new companies were incorporated in this period, as compared to 14,783 in the fourth quarter of 2012, and 17,865 in the first quarter of 2012. Cumulative number of active companies incorporated in the BVI at the end of Q1 2013 was 482,747. Also, there were 565 Limited Partnerships and 1,061 Private Trust Companies registered in BVI by the end of the reported period.

Banking and Fiduciary Services sector shows the following figures for commercial banks in the first quarter of 2013 (in US$ thousands): total assets made $2,436,445, deposits made $1,809,321, total shareholders’ equity was $416,240, operating income was $24,982, and net income was $13,673. 

In Investment business, 10 new Investment Business Licences were granted in the first quarter of the year (6 in Q4 2012, and 16 in Q1 2012), and 39 Mutual Funds were licensed (27 in Q4 2012 and 32 in Q1 2012). Cumulative number of Investment Business Licences as of 31 March 2013 was 530, and cumulative number of Mutual Funds was 2303.

According to Insolvency Services statistics, total number of Insolvency Practitioners in Q1 2013 was 23, the same as in the fourth and the first quarters of 2012. In the Insurance business sector, two insurance licences (1 captive and 1 domestic) were granted in the reported period, making the cumulative number of licences in this industry to achieve 229. 

As concerns Legal and Enforcement and International Cooperation statistics, there were totally 32 Enforcement Actions during the first three months of the year, including Advisory Warnings, Directives, Administrative Penalties, etc. Other information, including statistics on Ongoing Supervision and Onsite Inspections, can be found on the website of BVI FSC.

Brian Obvi,
Offshore Analyst

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BVI Named a Major Financial Centre by The Economist

In a special report by The Economist, a well known weekly news magazine publishing reports on politics, economics, business and finance, BVI has been recognized as a major financial centre playing a strong role in the global economy. It is stated in the report that offshore financial centres have recently been under attack but have been resilient to it, and the future of respected international finance centres like the British Virgin Islands and their staying in business is guaranteed.

The report, named “Storm survivors”, also acknowledges the importance of Asia to the BVI jurisdiction, as the BVI companies are used for initial public offerings and international investments. Among the reasons why investors are using the BVI for international arbitrage, there are highlighted the ease of raising funds, cheaper access to capital markets, speed of setting up a company (or investment vehicle) and access to reliable courts. 

The executive director of the BVI International Finance Centre Elise Donovan commented on the report, saying that “The Economist has highlighted some positive attributes about the BVI. It has shown us in a true light as a stable, well regulated and neutral jurisdiction which makes a significant contribution to the liquidity of the global economy.”

She also said some words on the role of Asian market for the BVI: “Asia is of the utmost importance to us. In less than 10 years, China will be the largest economy in the world. We have built a strong relationship with China and we must continue to build on those foundations and ensure the BVI remains an attractive proposition for Asian businesses.”

Brian Obvi,
Offshore Analyst

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New Guidelines Published by BVI FSC

The British Virgin Islands Financial Services Commission has published Guidelines in Relation to use of Restricted Company Names, having effect from 17 October, 2011. In the Introduction to the document it is stated that the Commission is empowered by the BVI Business Companies Act, 2004 to specify words or phrases to be restricted for purposes of incorporation, continuation, etc. The BVI BCA introduces the concept of restricted company name whereby a company that has as part of its name a restricted word of phrase cannot be registered unless it has the written consent of the Commission, whether in relation to incorporation, continuation, merger or consolidation.

Part I of the document relates to the Regulatory legislation, which prohibits the use by any person of certain specific names or phrases, and covers the terms named in Banks and Trust Companies Act, 1990, Company Management Act, 1990, Insurance Act, 2008, Securities and Investment Business Act, 2010 (SIBA). The second part of the Guidelines relates to Registry legislation (generally companies), and covers current requirements in relation to company name endings, restrictions on the use of company names. It also includes BVI Business Companies (restricted company names) notice, 2011. Part III of the document is the Guide to Applying for Consent/Approval for Use of a Restricted Name.

The Schedule includes Application for the consent or approval of the Financial Services Commission to use a restricted name. The Guidelines were approved by the Board of Commissioners on 30 August, 2011, and issued by the Financial Services Commission on September 15, 2011.

Brian Obvi,
Offshore Analyst

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Regulations Published by the Commission

Last week, a number of regulations was published by the British Virgin Islands Financial Services Commission. The documents issued by the Financial Services Commission are Financial Services (Miscellaneous Exemptions) Regulations, 2011, and Financial Services (Miscellaneous Exemptions) (Amendment) Regulations, 2011.

The first document includes the exemptions applicable to the Banks and Trust Companies Act, 1990 – from providing particulars to be specified in application for Class II and Class III restricted trust licences, from appointing an auditor for the holders of Class II and III trust licences; an exemption for company providing director, officer and nominee shareholder services only to obtain a licence under the Banks and Trust Companies Act, 1990. The document contains also an exemption for person providing director, officer and nominee shareholder services only, to obtain a licence under the Company Management Act, 1990.

The second document amends the schedule of Financial Services (Miscellaneous Exemptions) Regulations, 2011. Both documents came into force on 28 April, 2011.

Brian Obvi,
Offshore Analyst

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Regular Statistical Bulletin Published by BVI FSC

The British Virgin Islands Financial Services Commission has published the twenty-first volume of its Quarterly Statistical Bulletin, providing statistics and information on financial services activities for the fourth quarter of 2010.

By the information of the Registry of Corporate Affairs, for the fourth quarter period ended 31 December 2010 there were 14,267 Business Companies newly registered, a little decline if compared to 15,946 companies in the third quarter of 2010. Cumulative number of business companies as of 31 December 2010 was 459,364. Also, there were 29 Limited Partnerships registered in Q4 2010 (cumulative number 679). In total, in the year 2010 more BVI Business Companies were registered than in 2009, but the number of new incorporations was still lower than in the years 2007 and 2008.

The Banking Sector statistics of commercial banks for the fourth quarter 2010 comprised the following figures: total assets - US$2,453 million, cash items – US$757,7 million, total liabilities – US$2,062,6 million. Net income was US$36,316, loan loss reserves were US$1,4 million.

The Investment Business statistics has shown that total number of licences granted in the fourth quarter of the year was 31, cumulative number of licences as at 31 December 2011 being 2706.

As of the end of the fourth quarter of the year, there were 20 insolvency practitioners including full and restricted licences. Cumulative number of Insurance licences granted as at 31 December 2010 was 255 (16 issued in the fourth quarter of the year).

According to the Legal and International Co-operation statistics, in Q4 2010 there were 26 International Cooperation Matters, 24 of them being formal requests, and 25 Enforcement Matters. Also, in the fourth quarter of 2010 there were 644 Matters before the Licensing and Supervisory Committee (LSC), and 5 on-site inspections.

Brian Obvi,
Offshore Analyst

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BVI Among Most Popular Offshore Destinations for Czech Businessmen

Czech firm SMART Office & Companies stated that in 2010 there was more than double growth in the interest of Czech entrepreneurs in buying foreign ready-made companies, compared to last year.

It was also said that the most popular countries for offshore companies are British Virgin Islands and Seychelles. The interest of entrepreneurs to the British Virgin Islands has grown by 172% in 2010 as compared to the previous year (87 235 companies), and the interest to Seychelles has grown by 94% (119 231 companies).

The BVI, Seychelles and Cyprus are among offshore jurisdictions where tax system is most advantageous for Czech businessmen.

For next year, Smart Companies expects a growth of interest in traditional offshore tax havens, and in Asian jurisdictions – Hong Kong, Singapore and India.

Brian Obvi,
Offshore Analyst

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BVI FSC Published Twentieth Statistical Bulletin

The BVI Financial Services Commission has published the twentieth volume of Quarterly Statistical Bulletin, comprising financial statistics and analysis for the third quarter of 2010, the period ended at 30 September 2010. According to the statistics of the Registry of Corporate Affairs, publishing information on incorporations and registrations in the BVI jurisdiction, there were 15,946 business companies newly incorporated in the reported period. This is the growth in the number of registered companies, as compared to 12,815 companies registered in the second quarter of 2010, and to 13,368 companies registered in the third quarter of 2009. Cumulative number of companies incorporated in the British Virgin Islands at 30 September 2010 was 456,547.

According to the statistics published by Banking and Fiduciary Services Sector, in the third quarter of 2010 total assets of commercial banks were $2,189 million, loans and advances were $1,440,6 million, net income was $41,1 million.

In investment business sector, in Q3 2010 6 new licences were granted to functionaries (cumulative total number 577). 31 licences were granted to Mutual Funds (cumulative number 2951).

According to Legal and International Cooperation Statistics, there were 32 enforcement matters in the third quarter of 2010 (29 in the second quarter of 2010 and 39 in the third quarter of 2009).

In the third quarter of 2010, there were 464 matters before the Licensing and Supervisory Committee, 94 of them in Banking and Fiduciary Services sector, 293 in Investment Business sector, 75 in Insurance sector and 2 related to Insolvency services.

Brian Obvi,
Offshore Analyst

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The Commission Reminds of Deadline to Submit Applications

The British Virgin Islands Financial Services Commission reminded of approaching deadline to submit applications for money services or financing licence. The transitional period for submitting applications for money services or financing licence ends this week, on 30 September, 2010.

In the press release, the BVI FSC noted that conducting money services or financing business without a licence from 1 October 2010 will be considered an offence. The money services and financing businesses found guilty of this offence will have to pay a fine of US$60,000 for a corporate entity or US$40,000 for an individual, and/or imprisoned for three years.

The Financing and Money Services Act was passed by the House of Assembly on 26 May, 2009, and came into effect on 30 March, 2010.

Brian Obvi,
Offshore Analyst

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Harneys' HK Office Head to Lead Maples and Calder's BVI Practice in Hong Kong

The head of Hong Kong office of Harney Westwood & Riegels Michael Gagie was laterally hired by an offshore legal firm Maples and Calder, to co-lead the firm's British Virgin Islands practice in Asia. On 1 September, Mr. Gagie started work in his new post in Hong Kong office of Maples and Calder, along with Barry Mitchell. Both lawyers were living and working in BVI for some time before moving to Asia.

Since 2003, when Mr. Gagie joined Harneys, he regularly advised on listings of BVI corporations on international stock markets, including NASDAQ and AIM Market in London. By words of joint managing partner of Maples and Calder in Hong Kong Christine Chang, his arrival “could not have come at a better time as the market prepares for the BVI listings of BVI-incorporated companies on the Hong Kong Stock Exchange”.

Brian Obvi,
Offshore Analyst

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BVI FSC Issued Statistical Bulletin for the Second Quarter of 2010

The Financial Services Commission issued the nineteenth volume of its Quarterly Statistical Bulletin, providing statistics and analysis on activities in the financial services sector in the jurisdiction in the second quarter of 2010.

According to the Registry of Corporate Affairs, the number of newly incorporated business companies in the second quarter of 2010 was 12,815, compared to 16,596 reported in Q1 2010. However, this is a significant increase compared to the second quarter of 2009, when just 9,871 companies were incorporated. Cumulative number of companies incorporated in the British Virgin Islands as at 30 June, 2010 was 468,306.

Banking and Fiduciary Services statistics in the second quarter of 2010 showed the following aggregate totals for commercial banks: total assets were approximately US$2,529,282,000, net income was US$28,948,000, operating income was US$46,953,000. In Investment Business sector, 52 licenses were granted in the reported period, total number of licensed entities was 2956.

In the sector of Legal and International co-operation, 29 matters were registered that required international co-operation, 23 of them were formal requests asking for the disclosure of non-public information. Total number of enforcement actions before the Enforcement Committee was 13.

In the second quarter 2010, there were 307 matters considered by the Licensing and Supervisory Committee (LSC), 167 of them in the Investment Business sphere, 88 in the sphere of Banking and Fiduciary services, 45 related to Insurance, and 7 to Insolvency services.

Brian Obvi,
Offshore Analyst

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BVI FSC Issued Eighteenth Volume of Quarterly Statistical Bulletin

Last week, the eighteenth volume of Statistical Bulletin was issued by the BVI FSC, providing information and statistics on the British Virgin Islands financial sector activities in the first quarter of 2010.

In the three month period ended March 31, 2010, there was an increase in the amount of business companies registered in BVI – 16,596 newly registered entities, compared to 11,931 in the fourth quarter of 2009 and 12,307 in the first quarter of 2009. The number of BVI business company incorporations in this period approached to the statistics reported in 2008, - before the yields of the global economical and financial crisis became so clear. Cumulative number of business companies incorporated in the jurisdiction was 456,226 as at March 31, 2010.

Banking and Fiduciary services statistics showed that total number of currently licensed entities in the first quarter of 2010 was 268. According to financial results of banking sector in the first quarter of 2010, total assets of the banks were $2,469,308,000, and net income was $16,239,000.

In the Investment Business sector, 8 new licences were granted in Q1 2010, their total number as at the end of the period was 578; also, 58 new mutual funds licences were issued.

According to the Legal and International Cooperation statistics for the first quarter of 2010, there were less international cooperation matters compared to the previous periods – 17 formal and 4 informal requests, and 28 enforcement matters. There were 913 matters before the Licensing and Supervisory Committee (LSC), of them 91 for banking and fiduciary services, 786 for investment business, 32 for insurance and 4 insolvency services matters.

Brian Obvi,
Offshore Analyst

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BVI FSC Publishes Statistics for Q4 2009

The British Virgin Islands Financial Services Commission issued the seventeenth volume of Quarterly Statistical Bulletin that includes statistics, information and analysis of financial services activities in the BVI in the fourth quarter of 2009.

In this period, the number of companies incorporated in the BVI decreased: 11,931 new companies were registered, compared to 13,368 in the third quarter of 2009. Cumulative amount of companies registered in the jurisdiction is 410,293. The amount of companies incorporated during the whole year 2009 was less than in the previous years, starting from 2006.

According to Banking and Fiduciary Services statistics, total currently licensed entities as at December 31 2009 were 266. The banking sectors statistics for commercial banks in the fourth quarter of 2009 included information that total assets were US$2,453,025,000, cash items were US$925,018,000, net income was US$33,206.

According to the investment business statistics, 7 licenses were granted to functionaries in the fourth quarter of 2009, including managers and administrators, and 67 licenses were granted to mutual funds – professional, private and public. There were 17 insolvency practitioners licensed in the fourth quarter of 2009.

In the sphere of legal and international co-operation, there were 55 enforcement matters – that is significantly more than in the third quarter of 2009 and in the fourth quarter of 2008. The International co-operation matters in the fourth quarter of 2009 included 24 formal requests (requiring disclosure of non-public information), and 26 informal requests. Also, there were 6 on-site compliance inspections in Q4 2009, including the cases of inspections of the trust companies, in insurance and investment business.

There were 473 matters before the Licensing and Supervisory Committee in the fourth quarter of 2009, divided between Banking and Fiduciary Services (139), Investment Business (257), Insurance (73), and Insolvency Services (4).

Brian Obvi,
Offshore Analyst

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Ralph O'Neal Speaks on Tourism and Financial Sectors of the BVI Economy

In the recent delivery of the 2010 Budget Address in the House of Assembly, BVI Premier Hon. Ralph T. O´Neal talked about the tourism sector and the financial services sector and the results of their work in 2009. As regards the financial services industry, he mentioned several bills that have been brought before the House in the past few months, including the Securities and Investment Business Act, aimed at strengthening regulatory regime of the territory and promoting the status of the British Virgin Islands as a jurisdiction of the choice for doing legitimate business.

He also noted that Government is fully committed to ensuring that the Tax Information Exchange Agreements concluded by the BVI and its OECD partners are implemented effectively, through the efficient operation of the administration system supporting them.

Although the number of new company incorporations in the British Virgin Islands decreased by more than 14,000 in 2009, according to the statistics of the Financial Services Commission, Ralph O'Neal expressed optimism about the overall performance of the BVI economy in 2010. He said that the economy of the British Virgin Islands should experience the improvement in the financial services sector and tourism.

The BVI offshore incorporation figures up to the third quarter of 2009 were down by approximately 32 percent compared to the same period of 2008, but the overall number of active offshore companies registered in the BVI remains in the level of about 400,000.

Concerning the tourism sector of the BVI economy in 2009, the Premier outlined some of the effects of the global economic turmoil on the decrease of many indicators compared to 2008.

Brian Obvi,
Offshore Analyst

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BVI FSC Presented Bearer Share Regime Changes

The immobilization of bearer shares issued under the IBC Act (prior to 1 January, 2005) that came into force on December 31, 2009, was recently presented by the Deputy Managing Director of the BVI Financial Services Commission Mr. Kenneth Baker. As a background for the changes in the bearer shares regime Mr. Baker named the international pressure which was expressed in the reports of international economic and financial organizations, including the OECD and FATF reports and recommendations. He said that the end of BVI IBC's power to issue bearer shares and their immobilization were necessary for the high international reputation of the jurisdiction as the financial and offshore centre.

Several amendments to the BVI legislation acts were done in order to transfer bearer share companies to non-bearer share ones. Among the documents that were amended there are the Financial Services Commission (Amendment) Act, 2004, the BVI Business Companies Act, 2004, International Business Companies (Amendment) Act, 2003, and International Business Companies (Amendment) Act, 2004.

The Financial Services Commission (Amendment) Act, 2004 came into force on 1 July, 2004, and since that date the BVI FSC has been accepting applications for authorized BVI custodians. The amended Act defines rules governing custodians, including the conditions of approval and revocation of approval of custodian's licences, the issue of guidance notes relating to Authorized Custodian's practices and procedures.

Mr. Kenneth Baker in the presentation explained the meaning of disabled bearer share, and the order of disapplication on bearer share transfer. He provided the definitions of recognized and authorized custodians, and the lists of recognized and authorized custodians developed by the BVI FSC.

The presentation can be found on the home page of the British Virgin Islands Financial Services Commission.

Brian Obvi,
Offshore Analyst

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BVI FSC Published Statistics for the Third Quarter of 2009

The BVI Financial Services Commission has issued the sixteenth volume of quarterly Statistical Bulletin, which includes information and statistics on financial services activities in the third quarter of 2009.

According to the Registry of Corporate Affairs, the number of business companies incorporated and registered in this period was 13,368 - higher than in the second quarter of 2009. Cumulative number of BVI BC's as of 30 September 2009 was 433,164. Total number of company incorporations for the first three quarters of 2009 decreased heavily compared to the same period of 2008 and especially of 2007. Also, the Registry reported that 10 Limited Partnerships were registered in Q3 2009, and the cumulative number of Limited Partnerships was 617.

In the sector of Banking and Fiduciary services the cumulative number of banking licences issued and/or renewed has not changed; generally, in the third quarter 2009 there were two newly licensed entities. Total number of licensed entities as of 30 September 2009 was 254.

The Financial Services Commission published the following financial results for the commercial banking sector in Quarter 3, 2009: total assets were US$2452mln, cash items were US$981mln, investments were US$2,7mln. Net income of commercial banks made US$45,8mln.

In Investment Business sector, total number of licences granted to functionaries (managers and administrators) in the third quarter of 2009 was 12, and the cumulative number of licences as of 30 September 2009 was 582; 54 licences were issued to mutual funds, and total number of mutual funds' licences was 2923.

According to the Insurance Sector statistics, in this period 3 licences were issued to insurers and 312 renewed (total number 315, compared to 364 in 2008). Also, 3 licences were issued to functionaries (agents, brokers, managers, etc.) and 42 renewed (total number 45, compared to 43 in 2008).

The Legal and International Cooperation statistics shows that the number of international co-operation requests (formal and informal) was 43 in the third quarter of 2009; there were 39 enforcement matters and 11 advisory warnings issued.

Further information and statistics in the spheres of legal and international co-operation, on-site compliance inspections and matters supervised by the Licensing and Supervisory Committee (LSC) can be found on the BVI FSC home page.

Brian Obvi,
Offshore Analyst

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BVI FSC Issued Fifteenth Volume of Statistical Bulletin

On October 20, BVI FSC published fifteenth volume of its regular Statistical Bulletin, including statistics and analysis of financial services industry in BVI for the second quarter of 2009. The Statistical Bulletin for Q2 ended 30 June 2009 comprises following information:

The Registry of Corporate Affairs reported that the number of newly registered business companies in this period was 9,871, compared to 12,307 in the first quarter of 2009 (fourteenth volume of Statistical Bulletin) and 15,831 in the second quarter of 2008. Cumulative number of company registrations by the end of Q2 2009 was 405,873. The Registry informed of 24 Limited Partnerships established in the reported period, compared to 14 and 26 established in Q1 2009 and Q2 2008 respectively. In general, there is a significant fall in the number of BVI business company incorporations in the first half of 2009, against the statistics for the corresponding periods of 2008, 2007 (when the largest number of incorporations was fixed) and even 2006.

Banking and Fiduciary Services statistics includes financial results of the banking sector of BVI for the second quarter of 2009: total assets for the commercial banks were reported in the amount of US$2480mln, the number of total cash items made US$967,4mln. Total shareholders equity in this period was US$339,59mln. Net income in the banking sector was US$33,44mln. The level of liquidity was higher than in the first quarter of 2009: liquid assets made 29.32% of the total assets and 46.48% of the total deposits (compared to 25.25% and 35.73% respectively in Q1 2009), and loans made 61.75% of total assets and 98.71% of total deposits in the second quarter (compared to 68.41% and 103.93% respectively in Q1).

According to the Investment Business Statistics, in Q2 2009 46 new licenses were granted to mutual funds (33 of which are professional funds, 12 are private funds and 1 is public fund), compared to 61 licenses issued in Q1 2009 and 100 licenses in Q2 2008. As to Insolvency Services Statistics, the number of Insolvency practitioners did not change from the previous reported period. Legal and International Co-operation Statistics figures for the reported period show that there were 45 international co-operation matters, including formal and informal requests, 53 enforcement matters and 9 advisory warnings issued.

Other information related to the regulation of financial services activities in the period ended 30 June 2009, including legal and international co-operation, on-site compliance inspections, ongoing supervision by the Licensing and Supervisory Committee and other matters can be found on the home page of BVI FSC.

Brian Obvi,
Offshore Analyst

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Regular Volume of Statistical Bulletin Issued by the BVI FSC

On July 31, the BVI Financial Services Commission published the fourteenth volume of its Quarterly Statistical Bulletin providing information on financial services activities in the first quarter of the year (ended with March 2009). By the data of the Registry of Corporate Affairs, the number of new offshore company incorporations in this period made 12,307 - meaning there is quite a significant increase compared to the fourth quarter of 2008, but not a very large number compared to the first quarter of 2008, and especially to the same period of 2007. Also, in the first quarter of 2009 just 14 Limited Partnerships were established. The cumulative number of company incorporations as of March 31, 2009 was 435,679, and the number of limited partnerships was 596.

In the first quarter 2009, Banking & Fiduciary Services sector reported total assets of $2,362,258,000 and investments of $4,229,000. Total shareholders equity made $327,500,000. Banking sector reported net income in the amount of $20,060,000, and operating income of $29,463,000. Liquid assets made 25.25% of the total assets, and 35.73% of total deposits; loans made 68.41% of total assets and 103.93% of total deposits.

Investment Business statistics showed 10 licenses were newly issued to investment managers (cumulative number 504), and 61 Certificates of Recognition and Registration. Also, in the first quarter 2009 four Public Mutual Funds (bringing total number to 69) and one Private Mutual Fund (total number 20) were registered. According to the Insurance Services sector, in Qtr1 2009 1 new Captive Insurers license was issued and 265 renewed.

Legal and International Cooperation statistics showed that there were 42 International Cooperation matters, 27 of them requiring the disclosure of public information, 38 Enforcement Matters and 2 Advisory Warnings issued.

Brian Obvi,
Offshore Analyst

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New Warnings Published by the Commission

On July 10 - 13, 2009, the BVI FSC published several documents warning the public on firms that are not licensed to carry on business in or from the territory of the British Virgin Islands. Among the firms that are not authorized to carry on financial services business in BVI there are:
- SP Trade Investments Capital Ltd.
- SP Trader Management Company Ltd.
- Taurus Global Markets Ltd.
- iTrade Capital Markets Ltd.
- Marketiva Corporation
- Pro Finance Group Inc. (PFGFX)

The Commission advised the public to be cautious in transactions with the following companies which are not licensed to carry on banking or financial services business in BVI:
- MBC Financial Services Ltd.
- Multiple Banks Clearing (MBC FX)

The companies that are not licensed to carry on registered agent services business in the British Virgin Islands, and are not incorporated in the British Virgin Islands are:
- Gold-Tech (GT) Services Limited
- Kaizen Corporate Services Limited
- CC Logic LLC

Also, the FSC informed the public that European Direct International Insurance Limited is not licensed to carry on insurance business in or from within the territory, and is not registered or incorporated in the British Virgin Islands.

Advisory Warnings No. 10 - 18 of 2009 were issued under Section 4 (1) (l) of the Financial Services Commission Act, 2001, and signed by Robert A. Mathavious.

Brian Obvi,
Offshore Analyst

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BVI Business Companies Order Published by the Commission

On May 26, 2009 the Registry of Corporate Affairs of the British Virgin Islands issued BVI Business Companies Order, which is an amendment of Schedule 2 of the BVI Business Companies Act, 2004. The Order, which will be cited as the BVI Business Companies (Amendment of Schedule 2) Order, 2009, was made by the Cabinet on the advice of the Financial Services Commission.

The document adds some sub-paragraphs to the Part III of Schedule 2 of the Act, that comprise the following issues:

- Where a CapCo that is automatically re-registered was liable to file an annual return prior to this procedure, the requirement for such filing shall continue to apply for the period up to 31st December 2008, and any fee for the filing of the annual return shall not be applied or required by the Registrar.

- The annual return required to be filed for the year 2008 shall be filed by the new registered agent of the CapCo that is automatically re-registered, and all obligations relating to the filing of the annual return shall apply anyway.

- Registered agent will mean the person that is named so in the memorandum of the re-registered CapCo, or appointed by a resolution of directors or members of CapCo.

Part VI of Schedule 2 is amended in paragraph 40 by inserting some formulations, and paragraph 46 by replacing “two months” term by “six months” term, and by adding the new sub-paragraphs informing that, in case the company 'to which this Division applies' fails to comply with the requirements of sub-paragraph (2) within the specified period, the Registrar may strike it off the register. Also, this striking off of a company by the Registrar “shall be treated as if the failure by the company to appoint a registered agent or file a notice of appointment of a registered agent were in accordance with section 213 (1) (a).”.

The document was made by the Cabinet on 24th April, 2009, and signed by Cabinet Secretary Otto O'Neal.

Brian Obvi,
Offshore Analyst

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