BVI Extends Mutual Fund Law Transition

by Phillip Morton, Investors Offshore.com

06 August 2010

The British Virgin Islands Financial Services Commission (FSC) has announced an extension to the transitional dates given for relevant BVI companies to introduce frameworks to comply with recently-introduced legislation, the Securities and Investment Business Act (SIBA), 2010, and the Mutual Funds Regulations, 2010.

The Securities and Investment Business Act and the Mutual Funds Regulations came into force on May 17, 2010, and now provide the legislative framework under which the FSC regulates mutual funds and other investment-related entities that conduct business in and from the BVI.

Originally an August and October deadline were given for conformity with the SIBA, and the same August date for the implementation of frameworks to comply with the Regulations. Through the introduction of the Securities and Investment Business (Amendment of Schedule 8) Order, 2010, and the Mutual Funds (Amendment) Regulations, 2010, the FSC has amended these dates to one date, December 31, 2010.

The transitional provisions apply to existing public, private, and professional mutual funds previously authorized under the repealed Mutual Funds Act and specify transition dates and relevant or specified periods in which these funds are to comply with certain sections of SIBA. These provisions also apply to existing investment-related business which now fall within the scope of SIBA.

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