Significant updates to the BVI Regulatory Code 2009

The BVI Financial Services Commission (the FSC), in its January 2020 newsletter to the industry, set out some useful timelines for licensees to comply with under the Regulatory Code 2009 (as amended) (the RC09).

The key points from the newsletter are as follows:

  • All entities seeking a licence under any of the regulatory legislation (as set out in Part A of Schedule 2 of the Financial Services Commission Act 2001) will be assessed against the requirements contained in the RC09
  • All existing licensees (ie licensees holding a licence prior to 13 November 2019) have until 1 July 2020, to comply with the new requirements under the RC09, these include matters related to:
    • Staff training and development
    • Corporate governance framework
    • Terms of business
    • Advertising and communication practices
    • Directors of BVI licensees
    • Expansion of responsibilities to a licensee’s board
    • Internal audit
    • Register of compliance breaches and compliance officer reports
    • Accounting and audit standards
    • Complaint handling
    • Professional indemnity requirements
    • Guidance notes on the “fit and proper” test

Our previous note which explains the above requirements can be found here.

Special timeline in relation to compliance officer reports:

  • The 2019 annual compliance reports for existing licensees must be submitted by 1 October 2020. The FSC, in its newsletter, encourages existing licensees to submit the 2019 compliance officer reports in accordance with the new requirements under the RC09
  • The 2020 annual compliance reports for all licensees must be submitted by 31 March 2021 and must contain the new information as required under the RC09

A copy of the FSC’s newsletter can be found here.

If you have any questions, please contact Mirza Manraj or your usual Harneys contact.