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

Article any source

The BVI FSC Issued Public Statement on Insurance Company

The British Virgin Islands Financial Services Commission issued the public statement concerning Western Preferred Life Assurance Limited, also operating as Western Preferred Life Insurance Limited, which has discontinued out of the BVI jurisdiction into another one.

The public statement informs that the company is no longer licensed or regulated by the FSC and is subject to enforcement action that remains outstanding.

Western Preferred Life Insurance Limited was formerly licensed by the FSC to conduct general insurance business from within the BVI territory in the class of Property Insurance, Liability Insurance, Financial Loss Insurance, and Accident & Health Insurance. In 2010, an administrative penalty was imposed on the company, in the amount of US$4,000.00 for failing to submit audited financial statements within the required period. Then, the same year, the FSC required the company to implement a plan of prescribed remedial actions by a deadline of 31 January, 2011. The administrative penalty was not paid, and the remedial actions have not been implemented by the company.

Western Preferred Life Insurance Limited was struck off the BVI company register on 25 November, 2010, the licence having been revoked on 7 June, 2012.

Brian Obvi,
Offshore Analyst

Article any source

BVI FSC Issues Public Statements on Insurance Companies

The British Virgin Islands Financial Services Commission has issued public statements concerning the following companies: Hove Insurance Company Limited, Settlement Casualty Corporation, and Vessia Insurance Company Limited. By the public statements, the general public becomes aware that these companies are no longer licensed or regulated by the Commission, and are subject to enforcement action that remains outstanding. All the three companies were formerly licensed by the BVI FSC to conduct insurance business from within the territory.

In October, 2010, the BVI FSC imposed an administrative penalty on Hove Insurance Company Limited, in the amount of US$4,000.00 for failing to timely submit audited financial statements. The company did not pay it, and as a result of the non-payment of its fees, on 1 May, 2010 it was struck off the BVI company register maintained at the Registry of Corporate Affair. It is no longer licensed and regulated by the Commission, the license having expired on 31 December, 2009.

In November, 2010, the Commission imposed an administrative penalty on Settlement Casualty Corp, in the amount of US$5,000.00 for failing to submit audited financial statements to the FSC within the approved or prescribed period. This administrative penalty was not paid, and remains outstanding. The company was struck off the BVI company register as a result of the non-payment of its fees. The license of the company has expired on 31 December, 2009.

In December 2009, the FSC imposed an administrative penalty on Vessia Insurance Company Limited in the amount of US$4,000.00, for failing to submit audited financial statements to the FSC within the approved or prescribed period. This administrative penalty was not paid, and remains outstanding. In June, 2011 the Commission imposed an administrative penalty on the company in the amount of US$6,000.00. The company was struck off the register on 1 May, 2010, as a result of the non-payment of its fees. The company is no longer licensed and regulated by the FSC, the license having expired on 31 December, 2009.

Brian Obvi,
Offshore Analyst

Article any source

BVI FSC Publishes Financial Statistics for Q2 and Q3 of the Year

Last week, the BVI Financial Services Commission published the twenty-third and twenty-fourth volumes of its Quarterly Statistical Bulletin, providing information on financial services activities in the territory in the second quarter and the third quarter of 2011, respectively.

In the second quarter period, ended 30 June 2011, there were 15,689 business companies newly registered in the BVI, as compared to 12,815 in the same quarter of 2010. Also, there were 13 Limited Partnerships registered in the second quarter of the year. According to the Banking and Fiduciary Services statistics for commercial banks, in this period total assets were US$2,419 mln, cash items were US$717,028 mln, loans and advances were US$$1,529 mln, total liabilities were about US$2 mln.

Total number of Licensed Insolvency Practitioners, including Full and Restricted Licenses, in the second quarter of 2011 was 25. In the sphere of Legal and International Cooperation, there were 24 International Cooperation Matters, and 44 Enforcement Matters. The Licensing and Supervisory Committee (LSC) in these three months has reviewed 538 matters.

The twenty-fourth volume of the BVI Financial Services Commission's Quarterly Statistical Bulletin, providing information on financial services activities in the third quarter of 2011, informs about 17,056 business companies incorporated in this period. Cumulative number of business companies as at 30 September 2011 was 457,331. In the third quarter of 2011, 12 Limited Partnerships were established, cumulative number of Limited Partnerships was 545.

According to the Banking and Fiduciary Services statistics, total assets in this period were US$$2,450 mln, cash items were US$724,6 mln, loans and advances were US$1,582 mln, total liabilities were US$2,028 mln.

According to Legal and International Cooperation Statistics, in the third quarter of 2011 there were 38 International Cooperation Matters, and 31 Enforcement Matters; 357 matters were reviewed by the Licensing and Supervisory Committee.

Brian Obvi,
Offshore Analyst

Article any source

BVI FSC Issues Quarterly Statistical Bulletin

The British Virgin Islands Financial Services Commission has issued regular volume of Quarterly Statistical Bulletin, providing information on financial services activities in the jurisdiction in the first quarter of 2011.

According to the information published by the Registry of Corporate Affairs, in the reported period 19,010 Business companies were registered, a significant increase as compared to 14,267 companies registered in the fourth quarter of 2010, and to 16,596 companies registered in the first quarter of 2010. In fact, the number of companies registered in the reported period approached the level of the year 2008, when in Q1 20,752 companies were registered. Cumulative number of Business companies incorporated in the British Virgin Islands by the end of Q1 2011 was 456,146. Also, in the period that ended March 31, 2011, 25 new Limited Partnerships were registered, cumulative number of Limited Partnerships by the end of Q1 2011 was 521.

By the statistics of Banking and Fiduciary Services sector, in the first quarter of 2011 two Class I trusts licences were issued. Cumulatively, there were 223 currently licensed entities as at March 31, 2011.

The statistics of Banking Sector for commercial banks showed the following figures: total assets were US$2,408 mln, cash items were US$729,2, loans and advances made US$1,538 mln, total liabilities were US$2,011 mln.

According to the Investment business statistics, 57 mutual funds were registered in Q1 2011; of them 45 are professional funds and 12 are private funds. Cumulative number of mutual funds as of March 31, 2011 was 2673. The Investment business statistics has also shown that 90 mutual funds licences and 8 Investment business licences were cancelled.

In the Insurance industry, one licence was granted in Q1 2011, cumulative number of insurance and functionaries licences as at 31 March 2011 was 41. In the sphere of Legal and International co-operation there were 35 International Co-operation Matters, 32 of them were formal requests requiring disclosure of the non-public information.

In the first quarter period, there were 452 matters before the Licensing and Supervisory Committee, and one matter of on-site inspection.

Other statistical data, facts and figures can be found on the site of Financial Services Commission of the British Virgin Islands.

Brian Obvi,
Offshore Analyst

Article any source

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

Article any source

BVI FSC Issues Application Forms for Financial Services Business Provider's Licence

The BVI FSC has issued the information and guidelines for those who seek to apply for a licence or certificate as Financial Services Business Providers within the jurisdiction. The six documents published by the Commission include the Application Form that should be completed by an applicant to obtain the Licence or Certificate as a Financial Services Business Provider (Part 1 of the Document), and the forms which include additional information required in the case of a Banking or Fiduciary Business Licence Application (Part 2), in the case of an Insurance Licence Application (Part 3), for an Investment Business Licence, Recognition and Registration of Mutual Funds (Part 4).

Part 5 of the Document is for additional information, which is not specifically requested in an approved form for the type of authorization sought, but which an applicant may wish to provide for the consideration of an application or for any other reason. Part 6 (Declaration) and Part 1 should be completed by all applicants notwithstanding what type of Licence they apply for.

The order of completing the approved appplication forms, additional forms and attachments and their acceptance by the Commission is stated in the Application Guidelines. Every application must be accompanied by the requisite fee. All completed applications along with supporting documents should be addressed to the Financial Services Commission, and will be processed by appropriate divisions of the FSC which have responsibility for the subject matter of the application.

Brian Obvi,
Offshore Analyst

Article any source

BVI FSC Issued Advisory Warnings on Insurance Companies

The British Virgin Islands Financial Services Commission issued Advisory Warnings on two companies, having informed the public that Team Casualty Insurance Company Limited and Willow Grove Life Insurance Company Limited are no longer licensed to carry on insurance business in or from the British Virgin Islands.

In the Advisory Warning, the BVI FSC stated that Team Casualty Insurance Company Limited and Willow Grove Life Insurance Company Limited contravened the following sections of the Insurance Act, 1994:

(a) Section 55 of the Act by failing to seek the prior approval of the Commission to discontinue its business in the British Virgin Islands;
(b) Section 73 of the Act by having a prescribed word in their names;
(c) Section 22(1)(a) and (b) of the Act by failing to submit annual reports to the Commission since 2005; and,
(d) Section 17 of the Act by failing to pay the annual license fee since 2007.

Brian Obvi,
Offshore Analyst

Article any source

BVI FSC Informs on New Legislative Provisions

On January 15, the British Virgin Islands Financial Services Commission announced that the new legislative provisions are to come into effect in the near future. The new provisions include the Insurance Act, 2008, the Financing and Money Services Act, 2009 and the Regulatory Code, 2009.

The Commission informed about the following effective dates: 1 February 2010 for Insurance Act and for the Regulatory Code, and 31 March 2010 for Financing and Money Services Act.

The Insurance Act, 2008 is to replace the Insurance Act, 1994 and the Insurance Regulations, 2009 are to replace the Insurance Regulations, 1995. The Insurance Regulations, 2009, made by Cabinet with advice of and in consultation with the BVI FSC, contain more details for classifications for insurance business, maintenance of registers and specifications of public records.

The Financing and Money Services Act provides legislative framework for the licensing, regulating and supervision of persons engaged in the provision of money or value transfer services. Also, it establishes a six months transition period for existing businesses to make the required application for licensing to the Financial Services Commission.

Brian Obvi,
Offshore Analyst

Article any source

Advisory Warning on BVI Insurance Company issued by the Commission

On 17 February 2009, the British Virgin Islands Financial Services Commission issued Advisory Warning No. 1 of 2009 concerning insurance company Source One Insurance Ltd. The Commission informed the public that the company is no longer licensed under the Insurance Act, 1994, to carry on insurance business from the BVI territory, based on the fact that the licence granted to Source One Insurance Ltd. expired on 31 December 2007 and has not been renewed since that time.

The BVI company tried to continue its operations into another jurisdiction but could not because it has failed to comply with the BVI's laws and requirements to do so.

The BVI FSC advised public to exercise extreme caution in conducting any transactions with Source One Insurance Ltd., as it has no licence to carry on insurance business in or from within the British Virgin Islands.

Brian Obvi,
Offshore Analyst

Article any source

New Insurance Act 2008 passed by the First House of Assembly

The Insurance Act 2008, replacing the Insurance Act of 1994, was passed at the Sixth Sitting of the First House of Assembly. The new act will have the purpose of positioning the insurance industry in the BVI territory in order to meet international insurance standards.

Premier Ralph T. O'Neal pointed out that the bill has developed and enhanced the framework of the previous act, to achieve full compliance with the international association of insurance supervisors. Describing the bill, he said that it seeks to reform the legal and regulatory regime on the licensing, administration and supervision of insurance businesses in the British Virgin Islands, and reforms of the regime relating to insurance managers, intermediaries and loss adjustors.

By words of the Minister of Finance, the BVI territory is scrutinized both by the international community and investors. In connection to this, O'Neal said that the more successful one is in the insurance business, the more careful he has to be.

In terms of compliance with the new Act, the Financial Services Commission (FSC) is to ensure that businesses are in compliance with the new Act.

Prior to being passed, the new Insurance Act was endorsed from both the Government's side and the Opposition during the debate. In the opinion of Deputy Speaker Keith Flax who also endorsed the bill the new Act has tightened a lot of loop holes that existed in the 1994 law. Elvis Harrigan, representing the Fifth District, noted that the insurance sector is a source of income that can strengthen the FSC and bring more funds into the BVI territory. The National Democratic Party traditionally does not have opposition when it comes to the financial services industry.

In his speech during the debating session prior to the passing of the Insurance Act 2008, Minister for Education and Culture Andrew Fahie noted he would like to see more local people who are interested to get managerial positions within the sector of insurance industry. Fahie said that even though the insurance sector is bringing in substantial revenue, the BVI territory needs to look at what benefits the industry brings to the people.

Brian Obvi,
Offshore Analyst

Article any source

BVI Insurance Association looking for ways to rescue BVI domestic insurance business

The BVI Insurance Association that was recently formed to work in the domestic insurance sector, is to deal with many issues affecting the industry and to address many challenges, some of them even threatening functioning of the sector.

The President of the BVI Insurance Association and the Managing Director of NAGICO Insurance Company Shan Mohamed has told about the main problems of onshore insurance industry. He said that members of the Association would need to come together and agree to work with certain parameters, to ensure that the industry remains strong, and customers' interests are respected and protected. The President of the Association expressed concern over too large number of accidents in the BVI, and said the association will lobby to Government to address this issue.

An important point made by Mohamed is that the association was formed to protect the domestic insurance industry in the BVI, because financial institutions, for example banks, are seeking to enter the property insurance market, and their number may be critical to other companies, particularly medium and small insurance agents. By his words, this becomes common practice in developed countries, and the current situation should be evaluated by the BVI FSC and other Government bodies responsible for the approval of new licenses.

After saying a few words about the problems of onshore insurance business in BVI, we should note that BVI offshore insurance business is sound and perfect. Offshore insurance business in BVI is another good example how offshore jurisdiction can improve the quality of offshore financial services. Industry professionals should remember how in early 90s there were couple thousand captive insurance companies registered on the BVI. Most of them were shell captives, some were related to grey business, and even money laundering. By introducing stringent requirements to minimum capital, due diligence and other measures, the number of licences was reduced to several hundreds, but BVI dramatically improved the quality of BVI-licensed captive insurers.

Parent companies for most BVI-licensed captives are located in the U.S. However, the offshore territory is of global importance, being the basic jurisdiction for captives from such countries as Switzerland, Guernsey, Taiwan, South America and the Middle East.

Brian Obvi,
Offshore Analyst

Article any source

1st Advisory Warning of 2007 Issued by the BVI FSC

On May 7, the British Virgin Islands Financial Services Commission has issued Advisory Warning No. 1 of 2007, signed by Robert Mathavious. The first Advisory Warning of this year concerns Dexter Insurance Company, Ltd., stating that the company is no longer licensed by the BVI FSC to conduct insurance business.

The reason is that Dexter's licence to carry on insurance business from within the BVI has not been renewed since December 31, 2006. The Financial Services Commission advised public not to conduct insurance business with Dexter, based on the fact that it is licensed to carry on business from within the BVI.

The issues coming under the power of the BVI FSC are licensing and following supervision of regulated activities such as insurance, mutual funds, banking and trust business, carried on in or from the BVI territory. Advisory Warnings are published by the Commission on its site for the general publics, to protect them from scams, misunderstandings or offences.

Brian Obvi,
Offshore Analyst

Article any source