BVI FINANCIAL SERVICES COMMISSION 20TH ANNIVERSARY

As 2022 was the 20th anniversary of the BVI Financial Services Commission (FSC), Business Insight talked to Kenneth Baker MD & CEO of BVI Financial Services Commission of the BVI about the evolution of the Financial Services Commission over the last two decasdes.

In your opinion, what have been the three most significant milestones in the financial services industry (and/or FSC) over the last 20 years?

In my opinion, the three most significant milestones in the financial services industry over the last 20 years are as follows:

a. The enactment of the BVI Business Companies Act, 2004 which was designed to modernise the corporate regime, continue the attractiveness of the international business companies’ regime and eliminate the ring-fencing structure of the local companies and the international business companies. The jurisdiction was under pressure from the European Union to eliminate the perceived ring-fencing.

b. The introduction of the VIRRGIN system which modernised the registry function of administering the Business Companies Act. The VIRRGIN system has almost eliminated the need to file paper transactions and has improved productivity significantly.

c. Positive assessment of the regulatory regimes in the jurisdiction. These assessments against numerous international standards have demonstrated that the jurisdiction has conducted international business in accordance with the various international standards promulgated by standard setters.

What main attributes do you believe have contributed to the success of the BVI’s financial services industry over the last 20 years?

The main attributes that I believe have contributed to the success of the BVI’s financial services industry over the last 20

years are regulation, innovation, international cooperation and resilience in this order. The jurisdiction has over the years always taken the high road to maintain and protect its reputation advocating that “a flight to quality should be encouraged”. The BVI Business Companies Act, 2004 is the hallmark legislation which has generated the most revenue for the jurisdiction. The VIRRGIN system was a great innovation which modernised the registry function by eliminating paper filing of transactions and improving efficiency. The jurisdiction also has a stellar reputation for providing international cooperation to fellow regulators who request information when persons who are ethically challenged use BVI structures for illicit purposes. Finally, the VIRRGIN system had a significant real-world test of its resiliency following the devastating weather events of 2017. All together these attributes make the BVI a premier jurisdiction for conducting international financial services business.

In your view, what is the single most important factor in the success of the BVI’s FSC?

The single most important factor in the success of the BVI FSC has been the tripartite relationship between the industry, Government and the Commission. The relationship involves working with the industry to develop product legislation, taking consultation comments onboard that would result in the best outcome for the jurisdiction and responding appropriately to threats in order to safeguard the reputation of the jurisdiction.

Could you share any personal highlights from your time with the BVI FSC?

Take advantage of training and development opportunities including overseas attachments where available. The Commission has offered overseas attachments to a number of staff over the years and all of the participants have performed well during the attachments and have risen through the ranks of the Commission. Both Deputy Managing Directors have experience working overseas with fellow regulators.