The BVI Financial Services Commission issued a press release on June 28, 2022, informing practitioners of a significant change to its internal structure. A new Authorisation and Supervision Division (ASD) will replace the current Investment Business, Insurance, and Banking, Insolvency and Fiduciary Services divisions.
When the new regime becomes effective on July 1, 2022, four new units will constitute the ASD: the Authorisation Unit, the Prudential Supervision Unit, the Specialised Supervision Unit, and the Market Conduct Supervision Unit. The FSC expects this arrangement will improve its ability to serve and oversee regulated businesses and individuals.
Each new sub-division will have specific functions rather than the current structure where divisions are responsible for approving and supervising entities based on the licence applied for or held. Going forward, the Authorisation sub-division of the ASD will handle all licence applications and hand off, if you will, to either the Prudential Supervision Unit or the Specialised Supervision Unit. The Prudential Supervision Unit will supervise and monitor regulated entities that are considered to present a lower level of risk. The Specialised Supervision Unit will handle entities considered to be of higher risk. Meanwhile, the Market Conduct Supervision Unit will be responsible for promoting a fair and transparent market and implementing consumer protection measures.
What does this mean for the BVI consumer?
Of course, it is too early to say how well the new system will work, and we expect the FSC to issue further guidance in the coming months. However, we anticipate that the new structure will improve efficiency and perhaps faster turnaround on applications and other requests, as each division develops deeper experience and expertise in dealing with its specific focus.
Industry practitioners will continue to pay close attention to the effect of these changes, and O'Neal Webster will provide updates on the new regime in the coming months. In the meantime, we laud the FSC for adapting to the increasing demand for BVI services and the expanding complexity of the BVI financial services market.