Financial Services (Miscellaneous Exemptions) (No. 2) Regulations

The Virgin Islands regulatory authority issued these regulations to grant specific exemptions under the Banks and Trust Companies Act and the Company Management Act. The rules relieve applicants for restricted Class II and III trust licenses from providing detailed officer, auditor, and financial particulars, and exempt such companies from mandatory auditor appointments. Additionally, entities providing only director, officer, and nominee shareholder services are exempt from licensing requirements, subject to specific subsidiary and reclassification conditions.

British Virgin Islands

British Virgin Islands Financial Services Commission

LAW OF VIRGIN ISLANDS Financial Services (Miscellaneous Exemptions) (No.2) Regulations 77 Revision Date: 1 Jan 2020 [Statutory Instrument] FINANCIAL SERVICES (MISCELLANEOUS EXEMPTIONS) (NO. 2) REGULATIONS– SECTIONS 40C AND 62 (S.I.s 20/2011 and 37/2011) Commencement [28 April 2011] Short title

These Regulations may be cited as the Financial Services (Miscellaneous Exemptions) (No. 2) Regulations. Exemption
Exemptions specified in the Schedule shall have effect with respect to the enactments outlined in the Schedule.

SCHEDULE (Regulation 2) (a) Exemptions applicable to the Banks and Trust Companies Act Exemption from providing particulars to be specified in application for Classes II and III restricted licences

An applicant for a restricted Class II or restricted Class III trust licence is exempt from providing the following particulars under the Banks and Trust Companies Act— (a) names and addresses of all officers and managers; (b) names and addresses of solicitors of the applicant, together with a letter from the solicitors confirming that they act for the applicant; (c) names and addresses of auditors of the applicant, together with a letter from the auditors confirming that they act for the applicant; (d) an undertaking in writing to provide and set apart a fully paid up capital, before or at the time the applicant commences business— (i) in such amount as the Commission may in its discretion determine; or (ii) by a guarantee under seal of such amount given by a holding or parent or other company approved by the Commission; (e) annual accounts of the applicant’s holding company, if any, for the preceding 3 years and thereafter annually duly audited and certified by an independent auditor; (f) names of all subsidiary companies of the applicant with addresses of their registered offices; (g) statement of assets and liabilities at the end of the month prior to the submission of the application certified by a director or senior officer of the applicant; and

Financial Services 78 (Miscellaneous Exemptions) (No.2) Regulations [Statutory Instrument] Revision Date: 1 Jan 2020 LAW OF VIRGIN ISLANDS (h) statement of capital of any company held, directly or through a subsidiary, as an asset of the applicant. Exemption from appointing an auditor 2. A trust company that is the holder of a restricted Class II or restricted Class III trust licence is exempt from the requirement of appointing an auditor under section 17G of the Banks and Trust Companies Act. Exemption for company providing director, officer and nominee shareholder services only 3. (1) Where a company does not undertake any company management business other than the provision of— (a) directors and officers; and (b) nominee shareholders, for companies, the company is exempt from the requirement to obtain a licence by virtue of section 3(2A) of the Banks and Trust Companies Act. (2) The exemption granted under subparagraph (1) does not apply to a company that is the subsidiary of a trust company which is the holder of a Class I, Class II or Class III trust licence under the Banks and Trust Companies Act. (3) Where a company that is a Class I trust licensee is reclassified as a Class II trust licensee pursuant to section 10A of the Banks and Trust Companies Act and would have qualified for the exemption provided under subparagraph (1) but for the reclassification, the company— (a) shall continue to benefit from the exemption under subregulation (1); and (b) is exempt from the restriction applicable in respect of a Class II trust licensee to carry out trust business only. (Substituted by S.I. 37/2011) (b) Exemption Applicable to the Company Management Act Exemption for person providing director, officer and nominee shareholder services only (1) A person that does not undertake company management business other than the provision of— (a) directors and officers, and (b) nominee shareholders, for companies, is exempt from the requirement to obtain a licence by virtue of section 3(1) of the Company Management Act. (2) The exemption granted under subregulation (1) does not apply to a company that is the subsidiary of a company management company by virtue of section 4(3A) of the Company Management Act.