• Delicious




BVI Introduces ‘Final Piece’ Of New Insolvency Laws

by Amanda Banks, for LawandTax-News.com, London

26 July 2005

The British Virgin Islands Financial Services Commission has announced the introduction of the Insolvency Rules 2005.

The new rules are effective as of June 30, 2005, and have been described by the FSC as the "final piece" in the BVI's new insolvency and corporate restructuring programme, which began in August 2004 with the introduction of the Insolvency Act.

Christopher Hill, Director of Insolvency Services at the FSC, noted: “The Rules provide the numerous detailed procedures and provisions which support the ‘big picture’ requirements set out in the Insolvency Act. We believe that the Rules will provide a higher level of certainty to all the relevant industry stakeholders including insolvency practitioners, creditors and distressed businesses alike.”

According to the FSC, the new Insolvency Law provides a predictable and effective safety net for the BVI-registered companies and those who do business with them. As of 30 April 2005, 14 insolvency practitioners were licensed in the BVI, most of whom are professional accountants and lawyers.

“We welcome the introduction of the Rules, which represent the culmination of many months of careful thought, industry input and collaborative drafting to complete the new insolvency regime,” stated Robert Mathavious, Managing Director of the Financial Services Commission.

“We think that the Rules, with their added clarity will be good for business here in the BVI," Mr Mathavious added.

The new insolvency regime, which was based on the Insolvency Act 2003, became effective on 16 August 2004 and includes the following key features:

  • The introduction of a wide range of insolvency and financial restructuring options to businesses experiencing financial difficulties of some degree;
  • The licensing and regulation of insolvency practitioners in the BVI;
  • The creation of the role of Official Receiver; and
  • The introduction of a director disqualification process.

The full text of the 2005 Insolvency Rules can be found in the Tax News Resources section.

 

 






Write a comment