Entering into security financing transactions with BVI Business
Companies (BCs) is a familiar part of the global financial services
landscape given the use and presences of BCs. The ease of use of
BCs in these types of transactions is facilitated to a large extent
by the flexibility of the BVI Business Companies Act, 2004 (the
BCA). As it is common for BCs to maintain their assets outside of
the British Virgin Islands (BVI), the focus of this note will be on
what should be done under the BCA in relation to the creation and
registration by a BC of security over its foreign assets which is
governed by a foreign law. Given constraints of this note, security
interest is created over specific types of assets such as security
over shares in a BC, registered ships and aircraft, or land within
the BVI, all of which have separate asset based security
registration regimes, would require their own discussion at a later
time or may be found elsewhere on our website.
