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29 July 2010
BVI - Extended Transition Dates for Investment Business Legislation
On July 29, 2010, the British Virgin Islands Financial Services Commission (FSC) announced an extension to the transition dates under the new Securities and Investment Business Act, 2010 (“SIBA”) and Mutual Funds Regulations, 2010 (the “Regulations”).
Through the Securities and Investment Business (Amendment of Schedule 8) Order, 2010 and the Mutual Funds (Amendment) Regulations, 2010, the Cabinet of the Virgin Islands recently amended the transitional provisions under SIBA and the Regulations.
SIBA and the Regulations, which replaced the Mutual Funds Act, 1996, came into force on May 17, 2010, and are the legislative framework under which the FSC regulates mutual funds and other investment-related entities conducting business in and from within the Virgin Islands.
The transitional provisions apply to existing public, private and professional mutual funds previously authorised under the repealed Mutual Funds Act. They specify the transition dates and relevant or specified periods in which these funds are to comply with certain sections of SIBA. These provisions also apply to existing investment-related business that now falls within the scope of SIBA.
SIBA previously specified two transition dates:
August 3, 2010 relevant period of May 17, 2010 to August 2, 2010.
October 12, 2010 specified period of May 17, 2010 to October 11, 2010.
With the amendment, SIBA now specifies a single transition date of December 31, 2010, with a specified period of May 17, 2010 to December 30, 2010.
Similarly, the first transition date of August 3, 2010, which was specified in the Regulations, has also been extended to December 31, 2010.