The BVI Financial Services Commission oversees the securities and investment regime and supervises licensed persons.  The FSC Investment Business division maintains records listing the basic details of all licenced funds, managers and administrators and collects the annual and administrative fees. 

The Securities and Investment Business Act, 2010 governs all public offerings, Investment Managers and Advisors, Administrators and Mutual Funds operating from within the territory.  SIBA is supported by Regulations and a Regulatory Code of Conduct.   The new regime became effective May 17, 2010 and continues to provide modern and  flexible legislation promoting good corporate governance and investor protection.   SIBA maintains the simplified recognition process for private and professional funds which are licenced but not regulated by the  Commission jurisdictions.

MUTUAL FUNDS

The formation of a private or professional fund is simple and cost effective.  The applicant provides the approved form including details of key functionaries and normally providing the offering document.

Recognised funds are defined as follows:

PRIVATE FUND -  the constitutional documents specify that the fund (a) will have no more than 50 investors or (ii) that an invitation to subscribe for fund interests is made on a private basis.

PROFESSIONAL FUND - the constitutional documents specify that (a) fund interests are only issued to professional investors, and (b)  the intial investment of each investor shall not be less than $100,000.  A professional investor means an investor (i) whose ordinary business includes the acquisition and disposal of property of the same kind as the fund or (ii) has signed a declaration that his net worth is more than US$1 million and that he consents to be treated as a professional investor.

A PUBLIC FUND is registered under SIBA and can offer shares generally to the public.  The registration procedure is more involved than the recognition process to safeguard public investors however the regulatory requirements are not as burdensome as those typically found in securities exchange regulated countries such as the U.S. or U.K.

INVESTMENT MANAGER AND INVESTMENT ADVISOR

Any person providing investment management or investment advisory services from within the territory is required to obtain a licence.   Exemptions from licencing are available to investment managers that are regulated in a recognized jurisdiction.   There is a wide range of licence classes for investment management and advisory to suit the intended activity of the manager or advisor.   In order to obtaining a license the applicant must comply with the Mutual Fund Regulations, 2010 and Regulatory Code of Conduct which specifies matters including corporate governance, capital adequacy, risk management, compliance and insurance.  The licencee must show, among other things that it has the financial, human and administrative resources necessary for the competent and efficient conduct of its business.

ADMINISTRATOR, REGISTRAR AND TRANSFER AGENT

The Administrator need only apply for a licence if operating from within the BVI, an administrator in a recognized jurisdiction is exempt from the licencing requirements of the Act. The Registrar and Transfer agent is not licenced, although the provision of this service is typically conducted by the Administrator.

CUSTODIAN

The custodian is not required to obtain a licence in the BVI however the details are notified to the Commission and play an important role in evaluating a fund licence application.