In light of increased numbers of senior officer resignations, this article reviews the steps licensees must take to avoid risking enforcement action as a breach of the parent legislation under which the licensee's licence is granted.
When senior officers resign, licensees have seven days to notify the BVI Financial Services Commission (the FSC), per paragraph 17 of Part V to the Guidelines on the Approved Persons Regime, 2010 (the GAPR). This applies to all BVI licensees including those licensed under the Securities and Investment Business Act, 2010, the Banks and Trust Companies Act, 1990, the Company Management Act, 1990, the Insurance Act, 2008 and the Financing and Money Services Act, 2009.
Notification should include the reason and circumstances of resignation, any specific issues around fitness and propriety, and any other details as required by the Financial Services Commission Act, 2001 (the FSC Act) or an applicable financial services legislation (as set out in Part 1 of Schedule 2 of the FSC Act). Notification should also include a copy of the resignation letter, corresponding board resolutions and an updated register of officers.
"Senior officers" are defined as senior-level decision-makers at executive level, including those with responsibility for internal audit, compliance, money laundering compliance or senior management. Importantly, this does not include non-executive directors or executive directors when acting as a director, or people no longer employed by the licensee.
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.
