Investment business

For each challenge, a team to meet it

Investment business is subject to regulation by the Financial Services Commission (“FSC”) under the Securities and Investment Business Act, 2010 ("SIBA").

Since coming into force, SIBA augmented the BVI's regulatory regime to ensure it complies with international best practice and implements standards laid down by the International Monetary Fund ("IMF") and the International Organisation of Securities Commissions ("IOSCO"). SIBA provides for:

• An investment business licensing regime to regulate investment advisors, broker-dealers, market makers, custodians and operators of investment exchanges.
• Regulation of public, private and professional funds.
• Adoption of restrictions on, and regulation of, the public issues of securities in a non-mutual funds context.
• Introduction of a market abuse regime which provides for the offences of insider trading, circulating misleading information and market manipulation.

SIBA provides that no person may carry on "investment business" of any kind in or from within the BVI unless they are licensed by the FSC to carry on such investment business.  The scope of SIBA includes any BVI Business Company which carries on investment business anywhere in the world even if the only link with the BVI is the location of its registered office, as well as any person who solicits a person in the BVI in order to offer investment services.

Innovative solutions have been introduced for startup funds and managers with the options to set up Incubator Funds and Approved Funds, which are subject to a lighter touch regulatory regime.  The Approved Manager Regime introduced a new and attractive regime for startup managers and is proving popular. 

We provide diverse solutions in areas such as:

• reviewing business plans
• coordinating licensing applications
• resident Authorized Representative
• provision of a principal office
• ongoing compliance reviews
• accounting services and maintenance of proper books and records
• liaison with auditors, tax and legal advisors