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FAQs
Can an investment business licence be extended to include a different category of investment business or is a new application required?
Schedule 3 of SIBA lists the categories and sub-categories of investment business licences that may be issued by the Commission. A single licence may be issued in one or more of the categories listed in Schedule 3. Where a licence-holder wishes to extend the scope of its licence to provide services that fall under a new category of investment business, an application for the grant of a licence in the new category must be made. Where the applicant satisfies the requirements for the grant of a licence, the existing licence may be amended to include the new category of investment business. In order to facilitate the application for a licence in the new category of investment business, the Commission may waive the requirement to provide information and supporting documents that were submitted when the application for the existing licence was made.
Is it a requirement that the Commission’s approval be sought for the use of the word “fund” or a derivative thereof prior to the entity being incorporated?
Yes. An entity that intends to use the word “fund” or a derivative thereof in its name is required to seek the Commission’s approval prior to incorporation. However, the Commission has streamlined its procedures to facilitate the approval process. Accordingly, where an entity upon incorporation intends to make an application for licensing, recognition or registration under SIBA, the entity may provide a written undertaking to the Registrar of Corporate Affairs (on making the application for incorporation) stating that upon incorporation, it will make an application for recognition, registration or licensing under SIBA. The undertaking will avoid the need for a separate application for approval to use the “fund” and facilitate the timely incorporation of the entity.
Are application fees and approval fees payable in respect of applications for the appointment of a director or functionary of a public fund?
With effect from January 1, 2011, the application fee for the appointment of a director of a public fund is $150 and the approval fee for the appointment of a director of a public fund is $250. There is no application fee or approval fee for the appointment of a functionary of a public fund.
Are application fees and approval fees payable for the appointment of a director or senior officer of an investment business licensee?
With effect from January 1, 2011, the application fee for the appointment of a director or senior officer of an investment business licensee is $150 and the approval fee for the appointment of a director or senior officer of an investment business licensee is $250.
Is there a separate fee payable for the approval to appoint directors, senior officers, functionaries or auditors where the approval forms part of an application for licensing, registration or recognition?
As the processing of new applications under SIBA involves the assessment of the applicant’s directors, senior officers, functionaries and auditors, a separate fee is not payable for approval of the appointment.
What legislation permits captives?
Captives are permitted and able to be formed under the Insurance Act, 2008 and Insurance Regulations, 2009. Other financial services legislation, including the Regulatory Code, 2009 and BVI Business Companies Act, 2004 also contain general and specific requirements governing captives.
What is the total asset size of the captive sector and what is the total premium volume?
Current statistics on the captive (and other sectors) may be found in the most recent edition of the BVI FSC Statistical Bulletin.
What is the regulatory authority for captives in the BVI?
The BVI FSC is the regulatory authority for captives and the insurance sector generally as well as all other regulated financial services activities
What are BVI reporting requirements for captive and domestic insurers?
The Insurance Act, 2008 and the Regulatory Code, 2009 contain reporting requirements which include the submission of audited financial statements (for all insurers general and long-term), actuarial reports in the case of long-term insurers and other prudential or statutory returns in the case of domestic insurers.
When are audited financial statements due from insurance licensees?
Audited financial statements accompanied by a director’s certificate, auditor’s report and annual statutory returns are due within six months of a company’s financial year end. An extension may be requested from the BVI FSC by application pursuant to section 59 of the Insurance Act, 2008.
How long does it take to approve an application to be issued an insurer’s licence?
A decision on an application for an insurer’s licence may take up to 6 weeks where the BVI FSC receives a complete application. Submission of an incomplete application may lead to delays in processing of up to 6 months.
What is the tax structure in the BVI?
The BVI does not levy corporate income or capital gains taxes on companies (including insurance companies).
What is the number of captives active in the BVI?
Current statistics on captives may be found in the most recent edition of the BVI FSC Statistical Bulletin.
What are the capital requirements for a captive by type of business?
Type of business Capital Requirements
General insurers - $100,000
Long-term insurers - $200,000
What is the application fee for a new insurance entity?
Licence Type Application Fee
Insurer $1,000
Insurance Manager $500
Insurance Agent/broker $500
Loss Adjuster $500
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