Broker/Dealer 

Appleby has successfully assisted online forex trader, FIBO Group Ltd, in obtaining an investment business licence from the BVI Financial Services Commission to deal and arrange deals in investments under the Securities and Investment Business Act (SIBA). This licence allows for the provision of online foreign exchange trading services by a BVI company in Cyprus and Russia and is one of only a handful of broker/dealer licences that have been granted in the jurisdiction since the introduction of SIBA in 2010. Despite this, the level of interest in BVI broker and dealer licensing options in particular has been very high.

A source of many inquiries is Cyprus, which has historically been a portal for Russian capital and the traditional corporate structures using combinations of BVI and Cypriot entities to service the Russian and CIS markets. There is also interest from the US as already regulated brokers and dealers there look towards the BVI to cater for some of their non-US client arrangements. Since the new broker/dealer licensing regime was introduced in 2010, processing times for the review and approval of applications have improved enormously.

Approved Manager Regime 

The BVI's successful approved manager regime was recently expanded to include management of non-BVI funds from recognised jurisdictions that are either closed ended funds in a recognised jurisdiction or are open ended funds that have certain characteristics of private or professional funds as those terms are understood in the BVI e.g. in relation to numbers or types of investors or minimum initial investment requirements. This is a significant change and we anticipate that it will make the BVI even more attractive as a jurisdiction for start-up managers.

Reminder of Changes to Trust Legislation

Various amendments which came into effect in 2013 have already proven to be of particular interest to high net worth individuals and private client/trust practitioners. Some of the highlights include:

  • the perpetuity period applicable to trusts established after 15 May 2013 has been increased from 100 years to 360 years;
  • a BVI private trust company is now a "designated person" allowing it to act as the trustee of a BVI purpose trust created on or after 1 March, 2004;
  • a VISTA trust can now have more than one trustee and a designated trustee may now be at least one of the trustees;
  • a BVI private trust company may now act as the trustee of a VISTA trust; and
  • the trust instrument of a VISTA trust may provide that a protector shall not be an "interested person" (being a person who may call upon the trustee to intervene) and the trust instrument may now designate any other person as an interested person.

Appleby has recently released an updated Guide to VISTA trusts in the BVI as well as a Guide to Private Trust Companies in the BVI to reflect these changes. Copies may be accessed by clicking on the following link:

Download our guide to VISTA Trusts in the British Virgin Islands (November 2013)

DOWNLOAD

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.