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

Article any source

BVI FSC Issued 29th Volume of Quarterly Statistical Bulletin

Twenty-ninth volume of Quarterly Statistical Bulletin was issued by the British Virgin Islands Financial Services Commission, providing statistics and information on the financial services activities in the territory in the fourth quarter of 2012. According to the statistics of the Registry of Corporate Affairs, 14,783 new companies were incorporated in BVI during this period, as compared to 16,251 companies in the third quarter of 2012, and 12,974 in the fourth quarter of 2011. Cumulative number of companies newly registered in the BVI was 459,005 as at 31 December 2012. In the fourth quarter of 2012, 36 Limited Partnerships and 21 Private Trust Companies were registered.

According to Banking and Fiduciary services statistics, total assets of BVI-registered commercial banks in the fourth quarter of 2012 were $2,472,3mln; deposits were $1,827mln; total shareholders’ equity $400,7mln; net interest income was $44,3mln.

In Investment Business sector, 6 new Investment Business Licences were granted in the reported period. In Mutual Funds sector, 27 new licences were issued, of which 19 are professional and 8 are private licences. The Bulletin includes year-by-year statistics, from the fourth quarter of 2009 to the fourth quarter of 2012, showing the dynamics of how cumulative number of Active Mutual Funds was changing in this period. From Q4 2009 to Q4 2012, the number of Active Public Funds decreased from 216 to 151; the number of private funds decreased from 816 to 577; and the number of professional funds fell from 1,905 to 1,590.
There were 23 Insolvency Practitioners in the British Virgin Islands by the end of the fourth quarter of 2012.

Also, in the fourth quarter of 2012 there were 55 Enforcement Matters in the sector of Legal and Enforcement and International Co-operation. Ongoing Supervision Matters Referred to LSC included 103 matters in Banking and Fiduciary Services, 259 in Investment Business, 139 in Insurance and 10 in Insolvency Services.

Brian Obvi,
Offshore Analyst

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New Volume of Statistical Bulletin Issued by BVI FSC

This week, the Commission published the twenty-eighth volume of its Quarterly Statistical Bulletin, comprising statistics and analysis of BVI financial services industry for the third quarter of 2012. In the three month period, ended September 2012, 16,251 new companies and 20 limited partnerships were incorporated on the territory – more than in the second quarter of the year. As compared to the previous years, the number of company incorporations in the third quarter of 2012 was less than in the same quarter of 2011 (17,056), but more than in the years 2010 and 2009 (15,946 and 13,368, respectively). According to the Registry of Corporate Affairs, cumulative number of active business companies achieved 473,707 as at 30 September 2012, and cumulative number of limited partnerships achieved 496.

By the Banking and Fiduciary Services statistics, banking sector of the British Virgin Islands showed the following figures in the third quarter of 2012 (in thousands of US$): Cash items in the amount of $689,815, loans and advances in the amount of $1,600,974, total assets - $2,438,154, total shareholders’ equity - $449,670, net income - $31,235.

In the Investment Business, 3 new Investment Business licenses and 29 Mutual Funds licenses were granted in the reported period. Cumulative number of active mutual funds in Q3 2012 was 157 public funds (181 in Q3 2011), 591 private funds (718 in Q3 2011), and 1,610 professional funds (1,728 in Q3 2011).

In the sector of Legal and Enforcement and International Cooperation, 51 enforcement matters were registered in the reported period, and 31 formal requests for international cooperation, requiring the disclosure of non-public information. There were 14 enforcement actions, 12 of them – before the Enforcement Committee. Among the matters referred to the Licensing and Supervisory Committee in the third quarter of 2012, 79 related to Banking and Fiduciary Services, 332 related to Investment Business, 46 – to Insurance, and 7 – to Insolvency Services.

Brian Obvi,
Offshore Analyst

Article any source

BVI Remains the Second Top Country for HK Inward and Outward DI

Hong Kong’s Census and Statistics Department has issued the statistics of direct investments in country’s economy for the year 2011, where reported the increase of both inward and outward direct investments in Hong Kong economy by the end of 2011.

According to the published statistics, Mainland China remained the largest source and destination of HK direct investments. As the source of investments, at the end of the year Mainland China accounted for 36.3%, being the largest share of the total stock. The Mainland was also the most important destination for Hong Kong’s outward direct investments, with 42.1% share of the total stock by the end of 2011. 

British Virgin Islands was the second largest source of Hong Kong direct investments, with more than prominent share of 31.1%. As a destination of outward investment, the BVI was in the second place with 41.8% - again, very close to the leader of the statistics of HK investments, Mainland China.

In 2011, the stock of HK’s inward DI increased marginally by 0.9% from the year 2010, and achieved market value of almost HKD8.38 trillion. The total stock of Hong Kong’s outward DI increased by 8.3% from the previous year and reached market value of HKD7.95 trillion, with a ratio to GDP of 411%.

Brian Obvi,
Offshore Analyst

Article any source

BVI FSC Issued Statistical Bulletin for Second Quarter of 2012

Last week, the British Virgin Islands Financial Services Commission published Quarterly Statistical Bulletin, providing information and analysis of financial services activities in the BVI jurisdiction. The newly issued Volume 27 includes statistics for the second quarter of 2012.

According to the information of the Registry of Corporate Affairs, in the second quarter of the year 15,200 International Business Companies and 15 limited partnerships were incorporated in the BVI, as compared to 17,865 companies and 18 limited partnerships registered in the first quarter of 2012. Cumulative number of companies incorporated in the BVI as at 30 June 2012 was 447,801, and the number of limited partnerships was 442.

In the Banking and Fiduciary Services sector, one Money Services/Financial Business licence was issued in Q2 2012. The Banking sector statistics for commercial banks showed the following: total assets – $2, 39 million, deposits - $1, 73 million, net income - $11, 6 million, profit margin – 38,57%.

In Investment Business Sector, 10 new Investment Business Licences, 17 professional and 5 private licences for Mutual Funds were granted in the second quarter of the year. Cumulative number of investment business licences as at 30 June 2012 was 532; total number of professional mutual funds was 1621. Cumulative number of active mutual funds was lower in the reported second quarter of 2012, as compared to the same periods of 2011, 2010 and 2009.

In Q2 2012, total number of insolvency practitioners was 24 (25 in Q2 2011, 20 in Q2 2010). According to insurance statistics, one captive insurance licence was granted in this period.

According to Legal and Enforcement and International Cooperation statistics, total number of international cooperation matters in the second quarter of 2012 was 42 (42 in Q1 2012, and 44 in Q2 2011). Among ongoing Supervision Matters reviewed by the Licensing and Supervisory Committee, 110 referred to Banking and Fiduciary Services sector, 446 referred to Investment Business sector, and 60 referred to Insurance sector.

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 Ranked First in the Region for Best Quality of Life

In a report which was recently released by FDI Intelligence, a division of the Financial Times of London, the British Virgin Islands was ranked in the top first place in the list of countries of the Caribbean and Central America.

The report was published based on data compiled by the division of the Financial Times ans scored by an independent judging panel. Judging criteria for the category, which the BVI was the first, was based on multiple factors including life expectancy, infant mortality, unemployment rate, GDP per capita, crime and secondary enrollment rate.

Neil Blyden, chairman of the British Virgin Islands Tourist Board, said in his comments on the BVI ranking: "We are pleased to receive this recognition and we look forward to sharing these wonderful attributes with visitors to the destination... From our pristine beaches and exhilarating natural attractions to our friendly people, award-winning cuisine and outstanding accommodations, the BVI is a destination made for such superlatives."

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 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

Article any source

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

Article any source

Four Senior Level Appointments in the BVI FSC

In the last month, the Commission has made several senior level appointments. On 1 July, 2010 David Abednego was confirmed as Director, Insolvency Services, Alva McCall as Deputy Director, Policy, Research and Statistics, Michelle Georges as Deputy Director, Banking and Simone Martin as Deputy Director, Fiduciary Services.

Since 2008, David Abednego has been Deputy Director of the Insolvency Services Department, assisting the former Director, Christopher Hill, with the implementation of the Insolvency Act.

Before joining the FSC in 2008, Alva McCall was the Clerk of the House of Assembly. As Deputy Director of the Policy, Research and Statistics Department, she will be responsible for researching regulatory issues, liaising with international standard setting organisations, especially FATF and the IMF, and providing strategic policy advice.

Michelle Georges, will supervise authorised custodians, banks and the money services business. Her most recent post before being appointed as Deputy Director of Banking Department was with Banco Popular de Puerto Rico´s Commercial Lending Division.

Simone Martin, appointed as a Deputy Director of Fiduciary Services, will supervise trust companies and company managers. She has worked in the Commission since its inception.

Brian Obvi,
Offshore Analyst

Article any source

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

Article any source

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

Article any source

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

Article any source

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

Article any source

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

Article any source

BVI Financial Services Statistics for Q4 2008

In the end of May 2009, the Commission issued the thirteenth volume of Quarterly Statistical Bulletin, describing the situation in the financial services industry of the British Virgin Islands in the fourth quarter of 2008 and covering changes and progress in its different sectors.

The Registry of Corporate Affairs provided following statistical data for this period:
9,000 new companies were incorporated in the fourth quarter of 2008 – a decrease compared to 16,133 in Quarter 3 2008, and 17,513 in the fourth quarter of 2007. Cumulative amount of companies by the end of December 2008 was 414,620. In the reported period, 30 new Limited Partnerships were established – that is more than in Quarter 3 2008. Cumulative number of Limited Partnerships made 558.

If we have a look at the chart of company incorporations in the years 2005-2008, where statistical data are divided by quarters of the year, we can see that the most effective year by number of new incorporations was 2007, while this year was not so effective. This decline is certainly connected with global tendencies and the impact of financial crisis on the financial services industry of the British Virgin Islands.

Concerning the Banking & Fiduciary Services, 1 class I Trust licence was issued, bringing the cumulative number of this category of trust licences to 98 by the end of 2008. The Banking sector reported total assets of $2,363,702,000, total investments of $4,681. By commercial banks statistics, liquid assets made 46.48% of total deposits, return on assets made 2.16%, and average risk asset ratio was 27.82%.

Also, in the fourth quarter of 2008 11 new licenses were issued to investment managers and administrators, bringing the total number of licenses to 581.The number of professional mutual fund entities registered has grown to 1,894, compared to the same period of 2007. There were 831 private mutual funds and 228 public funds newly registered in the BVI.

The Insurance statistics showed that there were 11 new captive insurers licenses issued (4 in Q3 2008), 308 renewed and 68 cancelled. The reported insurance post licensing transactions: 6 directors appointments, 6 cases of shareholding change, 5 mergers and 5 liquidations. Also, 5 captive insurers and 1 domestic insurer received approvals for licensing.

In the sphere of Legal and International Co-operation, it was stated that just 12 co-operation matters were started – compared to 26 in the previous quarter; there were 12 onsite inspections held on trust companies and 4 inspections of investment businesses.

Brian Obvi,
Offshore Analyst

Article any source

Twelth Statistical Bulletin Published by the BVI FSC

The BVI Financial Services Commission has issued the twelfth volume of its Quarterly Statistical Bulletin, which includes information on the situation in the BVI financial services industry in the third quarter of 2008. The Commission reports on the progress made in different sectors of the BVI financial services industry, and provides new statistical data and analysis.

By the information of Registry of Corporate Affairs, in the third quarter of 2008 there were 16,133 new incorporations. This is less than 20,595 companies incorporated in the third quarter of 2007, but a little more than the number of new BVI companies registered in the second quarter of 2008. Cumulative amount of active companies as of 30 September 2008 was 461,998. This chart below shows the number of new companies incorporated in BVI through the third quarter periods of 2002-2008:
Banking and Fiduciary Services sector showed little changes compared to the second quarter of 2008, and to the third quarter of the previous year. Banking Sector statistics showed the percentage of liquid assets as 44.78% of total deposits, the number of non-performing loans made 3.12% of the total amount of loans, and total assets amount made more than 2 million USD.
Among other data shown in the Bulletin, there is Quarterly Post Incorporation Transactions Statistics for the period, showing the volume of activity of the BVI companies. The Quarter 3 2008 Post Licensing Transactions Statistics included information on the activities of the newly incorporated entities, i.e. the appointment of directors (39), change of authorised agent number, change of auditor (3), change of shareholding/ownership (1).

The Investment Business/Mutual Funds Sector provided information on new licences and certificates issued in the third quarter 2008, according to which 14 new licences were issued in this period (compared to 26 in the same period of 2007 and 10 in Q2 2008). Cumulative number of licences as of September 30 2008 was 576. Also, at the end of this period the share of Professional Active Mutual Funds was 64%, Private Mutual Funds making 28%, and Public Funds making 8% of the total amount.

In the field of Legal and International Co-operation, following figures were reported:
25 formal requests for international co-operation matters (requiring non-public information disclosure) – compared to 15 formal requests in Q2 2008, and 14 requests in Q3 2007. There were 39 enforcement matters in the reported period (27 in the second quarter of 2008, and no as such in the third quarter of 2007).

Brian Obvi,
Offshore Analyst

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