Changes To SIBA's 'Significant Interest' Provisions

An important part of the assessment of an applicant for a SIBA licence is to consider the fit and proper status of the persons who ultimately own and exercise control of the licensee. Section 11 of SIBA has always required that the prior written approval of the British Virgin Islands Financial Services Commission (the "Commission") be obtained prior to the disposal or acquisition of a "significant interest" in a licensee.

"Significant interest" is, broadly speaking, an interest in the licensee or any parent of the licensee which gives the holder (acting alone or in concert with other persons) either (a) a 10% or greater control of the voting rights or (b) a 10% or greater interest in the distribution of surplus assets or (c) a right to appoint or remove one or more directors.