Compliance Regime
Kenneth Baker
Deputy Managing Director
Financial Services Commission
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What is a Compliance
Regime?
• Appointment of an individual to
oversee the compliance function
• Development & application of
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compliance policies and
procedures
Review of compliance policies &
procedures to test effectiveness
On-going training for employees
Financial Services Commission
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Current Regime –
Compliance Officer
• Regulated Person designates one
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of his staff as Compliance Officer
Compliance Officer shall be a
senior officer
Compliance Officer shall act as a
liaison between Regulated Person
and Commission
Compliance Officer shall prepare
and submit to the Commission
written reports
Financial Services Commission
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New Regime - Individual with
Responsibility for Compliance
Oversight
• Licensee shall designate one of his
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staff as the individual responsible
for compliance oversight
Individual shall be a senior officer
Individual shall act as a liaison
between the Licensee and the
Commission
Individual shall prepare and submit
to the Commission written reports
Financial Services Commission
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New Regime Compliance Function
Proposed new Section 34 of the
Financial Services Commission
(Amendment) Act, 2006:
• Every Licensee shall ensure the
compliance function is
performed; and
• Every Licensee shall appoint an
individual approved by the
Commission to oversee the
compliance function.
Financial Services Commission
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New S.34(1) FSCA
Licensee to establish and maintain
systems and controls to ensure
compliance with:
• Financial Services Commission
Act and all financial services
legislation;
• Regulatory Codes; and
• Directives issued by
Commission.
Financial Services Commission
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New S.34(2) FSCA
Licensee shall establish and
maintain a compliance procedures
manual complying with the
requirements specified in
Regulatory Code
Financial Services Commission
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New S.34(3) FSCA
Individual responsible for
overseeing compliance function
shall have an obligation for:
• Reporting to the Commission;
• Reporting to the directors; and
• Acting as a liaison between the
Licensee and the Commission.
Financial Services Commission
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New S.34(4) FSCA
Individual responsible for
overseeing the compliance
function must satisfy the
Commission’s “fit and proper”
criteria:
• Honesty, integrity and
reputation;
• Competence and capability; and
• Financial soundness.
Financial Services Commission
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New S.34(5) FSCA
Individual responsible for
overseeing the compliance
function shall have
responsibility for:
• Establishing and maintaining a
programme for training staff; and
• Overseeing the implementation
of the compliance procedures
manual.
Financial Services Commission
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New S.34(7) FSCA
The Commission may issue a
Regulatory Code specifying:
• Maintenance of compliance
procedures manuals;
• Persons who may be appointed
to oversee compliance function;
and
• Reporting requirements to the
Commission and directors.
Financial Services Commission
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New S.34(8) FSCA
Person appointed to serve as
Compliance Officer under the AML
Code of Practice may be appointed
to oversee the Licensee’s
compliance function
Financial Services Commission
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Who will Oversee the
Compliance Function?
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Banks
Company Managers
Insurance Companies
Insurance Intermediaries
Private & Professional Funds
Recognised Managers
Managers and /or Administrators
Public Funds
Trust Companies
Financial Services Commission
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Compliance Oversight Banks
• General bank licensee –
BVI
resident individual
• Restricted bank licensee – BVI
resident individual
Financial Services Commission
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Compliance Oversight Fiduciary Services
• Company Managers – BVI resident
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individual
General Trust Licensee with
physical presence – BVI resident
individual
General and Restricted Trust
Licensee without physical
presence – individual who may be
an employee of Registered Agent
Financial Services Commission
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Compliance Oversight Insurance
• Captive insurer – Insurance
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Manager, otherwise an approved,
BVI resident individual
Credit Life re-insurer – Insurance
Manager, if one exists, or an
approved, BVI resident individual
Financial Services Commission
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Compliance Oversight Insurance
• Locally incorporated Domestic
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insurer – an approved BVI resident
individual
Overseas incorporated Domestic
insurer – an individual who fulfils
that function to the satisfaction of
the insurer’s home regulator
Financial Services Commission
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Compliance Oversight Insurance
All of the following must appoint an
approved BVI resident individual:
• Agents;
• Brokers; and
• Insurance Managers.
Financial Services Commission
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Compliance Oversight Investment Business
• Private & Professional Funds –
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one of a fund’s functionaries (for
example, fund manager or fund
administrator)
Public Funds – one of a fund’s
functionaries (for example, fund
manager or fund administrator)
Financial Services Commission
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Compliance Oversight Investment Business
• Recognised Managers –
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responsible licence-holder
Managers &/or Administrators –
an approved BVI resident
individual unless the manager or
administrator is non-resident, in
which case the compliance
function may be performed by a
non-resident individual
Financial Services Commission
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Compliance Oversight Notification
Where an individual is not required
to be approved, notification of the
individual with responsibility for
oversight of the compliance
function must be submitted to the
Commission
Financial Services Commission
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AML Code of Practice
The AML Code of Practice is to be
amended in line with proposed
new Section 34 FSCA
Financial Services Commission
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Implementation
• Financial Services Commission
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(Amendment) Act, 2006
Distribute answers to FAQ
Distribute Guidance Notes
Distribute Application Forms
Advise implementation date of
regime
Financial Services Commission
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Contact details
• compliance@bvifsc.vg
• enquiries@bvifsc.vg
Financial Services Commission
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