The Legal 500

On 15 March 2012 the British Virgin Islands Financial Services Commission (the “Commission”) published guidelines for practitioners requesting exemptions for funds from the requirement to appoint a manager, custodian or both (the “Guidelines”).

British Virgin Islands

Kerry Anderson - O’Neal Webster 

BVI Funds - Legal and structuring considerations

The British Virgin Islands (“BVI”) have approximately 3,000 investment funds recognised or registered by the BVI Financial Services Commission (“FSC”) under Part III of the Securities and Investment Business Act, 2010 and its accompanying regulations, the Mutual Funds Regulations, 2010 (together, “SIBA”). 

This briefing is intended to give a brief guide to the steps involved in the solvent liquidation of a business company incorporated in the British Virgin Islands (“BVI”). The liquidation process described (where a company has no liabilities or is able to pay its debts as they fall due) is carried out in accordance with Part XII of the BVI Business Companies Act, 2004 (the “Act”)

Corporate insolvency in BVI is governed by the Insolvency Act 2003 and the Insolvency Rules 2005. These laws are closely based on the English Insolvency Act 1986. There are a number of insolvency regimes available. However the provisions for administration, which are similar to the provisions of the English Insolvency Act 1986 prior to its amendment by the Enterprise Act 2002, and which promote the rescue of companies in financial difficulty assisted by a statutory moratorium, are not yet in force. There are separate provisions for insurance companies.