The British Virgin Islands
The BVI strikes the right balance between meeting the business and financial needs of the international community and maintaining regulatory and corporate governance policies that meet, an in many cases exceed, international best practice standards. This approach has led to a number of clear advantages for the international business community including:
• enduring political and economic stability
• a business-friendly operating environment
• efficient company formation and administration processes
• a pool of knowledgeable and qualified business and legal professionals
• a well-developed infrastructure, including excellent telecommunication services
• no currency exchange controls and the use of the US Dollar as the official currency
• a commitment to enact business-enabling legislation that protects the integrity of the BVI
The BVI International Finance Centre (BVI IFC)
The BVI IFC has played a pivotal role in the promotion and marketing of the BVI as a leading financial centre. Established in 2002 as part of the Government’s growing commitment to the financial services industry, the aim of the IFC is to give a voice to the BVIs financial sector. The IFC is committed to ensuring that the BVI retains the unique balance it has created in having a sound regulatory framework, an entrepreneurial business community and a government that is committed to developing innovative legislation. The launch of the Centre marked the final stage in the government’s plans to separate the marketing/promotional and regulatory/supervisory functions. Regulation is now the sole responsibility of the BVI Financial Services Commission, which was also established in 2002.
For the past 20 months, the BVI IFC has worked to promote the developments and changes of the business landscape in the BVI through a series of highly successful global roadshows. Under the theme “The BVI Advantage,” the roadshows have showcased developments in the regulatory and legislative frameworks in the BVI and the measures introduced to enhance the jurisdiction’s attractiveness and accessibility for international business. The roadshow programme has so far visited seven different jurisdictions attracting over 1000 delegates from business, financial and legal communities across the globe. In November 2005, the BVI will make a return trip to Hong Kong as well as visits to Beijing and Shanghai, as part of the jurisdiction’s continuing efforts to maintain close ties with stakeholders in the region.
The success of the roadshow programme has been widely attributed to the involvement of both the public and private sectors as well as regulators. High-level Government and regulatory officials from the BVI, including Chief Minister Hon Dr Orlando Smith and Hon Ronnie Skelton, Deputy Chief Minister and Minister of Finance & Economic Development, and Robert Mathavious, Managing Director and Chief Executive of the BVI Financial Services Commission, joined forces with senior representatives from the private sector to make presentations on key areas of the BVIs financial and fiduciary services industries.
A real benefit of the roadshow events has been the opportunity for members of the BVI delegation to exchange ideas, share information and engage in real dialogue with stakeholders globally on the important issues facing the international business community. The success of the programme is testament to the increased global recognition of the efforts to develop an innovative, efficient and respected international finance centre in the BVI.
Key elements of the BVIs financial services offering include:
• Business Companies
The BVI has earned a solid reputation as the world’s leading domicile for International Business Companies. A new company law regime, the BVI Business Companies Act 2004 came into force on 1 January, 2005 taking the virtues of the previous IBC Act of 1984 and combining them with a range of flexible and forward looking features to meet the requirements of today’s international business community. The new Act offers even more choices, security, clarity and flexibility for corporate structuring and investment opportunities than the original IBC Act, and has been described by many experts as a world leading example of progressive and modern legislation.
• Mutual Fund Registration, Management & Administration
The BVI Mutual Funds Act, passed in 1996, provides a modern regulatory regime for mutual funds. Crucial and in tune with the BVIs regulatory focus, the law covers funds that are registered in the BVI but operate elsewhere, as well as funds registered elsewhere operating in the jurisdiction. The BVIs attractiveness to international collective investment is obvious from the growth in the sector, with over two thousand active recognised or registered funds and over five hundred fund managers and/or administrators licensed as at the end of 2004, solidifying the territory’s status as a serious contender in the offshore world for the establishment and regulation of mutual funds and their functionaries.
• Captive Insurance Management
The British Virgin Islands has developed into a major international insurance centre in recent years. With steady annual, the BVI has firmly placed itself on the insurance domicile map and has consolidated its position as the fourth largest “offshore” captive domicile in the world with over 350 captive insurance companies licensed in the jurisdiction.
The growth in stature for the BVI as an international captive insurance jurisdiction has also been aided by the strong presence of complementary service providers such as internationally renowned law firms and accountancy practices. Whereas the BVI may have rightfully earned its reputation as the world capital for international business companies, it has now developed as a major centre for international business, including insurance.
• Trusts
The BVI is considered to be the location of choice for reputable, well capitalized international trust operations. This includes flexibility of planning, protection of privacy, wealth, assets and inheritance wishes, tax exemptions, competitive costs and swift but simple procedures. Underpinning this structure is the strong network of experienced trust professionals combined with the financial services industry’s commitment to a modern trust regime and effective partnership between the public and private sectors.
With the recent enactment of the Virgin Islands Special Trust Act, 2003, (VISTA) the British Virgin Islands has consolidated its position as the location of choice for international trust settlements and operations. VISTA has generated a substantial amount of interest from legal and corporate professionals and business entrepreneurs alike. In the relatively short period since the enactment of the legislation, more than 100 VISTA trusts are estimated to have been created, with the take up rate increasing substantially in 2005. VISTA has been acknowledged by trust and estate practitioners and other international experts to be a pioneering piece of legislation that provides a world leading regime for the trusts and estates industry.
• Accounting and Legal Services
The world’s foremost accountancy firms all have a presence in the BVI and there are clear signs of a growing demand for their services, particularly in the areas of mutual funds audit and insolvency practice. In addition, legal services are growing on the Island with the recent influx of several prominent Law Firms. BVI lawyers are widely respected throughout the financial services sector and several BVI firms have opened offices in London and Hong Kong, all of which work closely with their BVI offices.
• Banking
The BVI offer investors and entrepreneurs comprehensive banking services of the highest standard, even with the number of financial institutions licensed to operate within the territory remaining purposefully modest. Banks in the BVI offer current accounts and deposits in all major convertible currencies, foreign exchange trading, securities and commodities trading, international remittance, asset backed lending and collateral credits, corporate finance and custodian bank services.
• Shipping Registry
The BVI is currently ranked as Category Two Red Ensign (British) Registry, meaning that it can generally register ships of up to 150 gross tons (GRT) and pleasure vessels, that is, those not operated commercially, of up to 400 GRT. The BVI also boasts some of the largest and busiest yacht harbours and marinas in the Western hemisphere, many of the vessels at which are owned and operated by High Net-Worth individuals and corporate entities from all over the the world. As part of the BVI Government’s commitment to the growth of the sector and with a view to developing a mega-yacht industry in particular, legislation is being developed in cooperation with the U.K. towards the BVI becoming a Category One registry, further strengthening the BVI’s offering.
• Legislative and Regulatory Framework
Collaboration between the government and the private sector from the very beginning has ensured a strategic approach to the development of financial services and there is appropriate legislation and regulation in place in all the key sectors, meeting the approval of such international organizations as the IMF, FATF, IOSCO and OECD.
The BVIs focus with regard to legislation has always been to provide an attractive operating environment for business while safeguarding the integrity of the jurisdiction. To achieve this objective the government of the BVI has ensured that it is ahead of the curve as far as maintaining a modern, innovative, and sound regime of legislation and regulation is concerned and, as a result, the jurisdiction is widely recognised as one of the best-regulated international financial centres in the world whilst at the same providing a business-enabling environment.
Furthermore the collaborative approach between the government and the private sector has ensured the robustness as well as the practicality of new legislation such as the Insolvency Act of 2003 and the afore-mentioned VISTA trust legislation and Business Companies Act.
The BVI International Finance Centre is committed to maintaining the BVIs position as a pre-eminent, progressive jurisdiction for international business services and the destination of choice for discerning entrepreneurs and their advisers and service providers globally.
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For further information, please contact: Humphry Leue, Chief Operations Officer Tel: +1 284 494 1509 |
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Entry Filed under: Alternative Investment, Profile of IFCs