Securities and investment business is regulated in the BVI by the Securities and Investment Business Act 2010.
If your activities are merely limited to Forex brokerage, Dealing in Investments would be an appropriate license. Dealing in Investments would mean buying, selling or subscribing for an investment.
There is a distinction between dealing in investments as an agent (whereby one merely acts as a broker between the buyer and seller) and dealing in investments as a principal, whereby a person (the principal) is acting on his own account, in other words he is trading against proprietary capital by buying and selling financial instruments at prices determined by him. Accordingly, there are two sub-categories of this License:
• Sub-Category A: Dealing as Agent
• Sub-category B: Dealing as Principal
The license application requirements can be briefly summarized as follows:
a) The applicant for a license must be a body corporate established in the BVI.
b) The applicant company must have at least two directors and such directors, and/or any other senior officer, must have first been approved by the BVI Financial Services Commission (FSC).
c) The application must be supported by:
i. a business plan outlining the background of the applicant, planned areas, business development and objectives, management structure and operations and financial projections;
ii. compliance manual including AML manual, client acceptance procedures and know-your-customer polices.
iii. operating policies and internal controls manual;
iv. due diligence documents in respect of the applicant’s shareholders, beneficial owners and proposed directors and managers/officers;
v. shareholder’s undertaking in writing to contribute capital before or at the time the business is commenced;
vi. confirmation of appointment of local auditor and solicitor
The licensee will have to maintain adequate capital resources having regard to the nature and extent of the investment business to be carried on. The regulation requires that the board of directors and senior management of a BVI licensee make their own determination of the capital resources that are reasonably required to support the licensee’s business, taking into account its risk profile, and ensure that the licensee’s capital resources are increased beyond the minimum required where appropriate. It should be noted, however, that section 8(2) of SIBA expresses that it is within the Commission’s power, if it considers it appropriate, having regard to the nature and extent of the investment business carried on, or proposed to be carried on, by a licensee, to direct a licensee to increase its capital resources to an amount higher than the prescribed minimum or to maintain its capital resources in an amount not less than the amount specified in the direction. Size, and nature of proposed investment business, and the adequacy of capital resources are all considered as part of the application process.
a) application processing fee.
b) license fee.
c) Registrar of Companies fee: US$300 for a company with the authorized share capital of up to US$50,000 and US$1,100 for a company where the authorized share capital is above US$50,000.
d) approval of a director, manager, shareholder, senior officer: US$400 per person.
A basic package fee, which covers the following services:
a) attending to compliance and due diligence procedures in respect of the applicant’s shareholders, beneficial owners and directors;
b) formation of a BVI company;
c) one set of original corporate documents and rubber seal;
d) provision of the company registered agent and registered address during the first year;
e) compiling a due diligence file for each director, shareholder and senior officer for the company;
f) assistance with drafting a license application;
g) collecting license application supporting documents from the client, verifying same against the check-list, advising the client of obvious deficiencies;
h) formation of the application pack;
i) submitting the application pack to the FSC and following up until it is finalized
The below services, if needed, are charged on top of the basic package fee:
1. detailed review and correction of the license application supporting documents as prepared by the client, mentioned in points 2(c)(i, ii, iii and v) above;
2. drafting a business plan;
3. drafting the compliance manual including client acceptance procedures and know-your-customer polices;
4. drafting operating policies and internal controls manual;
5. assistance with locating and nominating an auditor or solicitor;
Our professional fees are exclusive of any government fees and disbursements.
We reserve the right to levy extra charges in the case of a complex corporate structure of the applicant (if there are chains of companies leading to the ultimate beneficial owner), as this increases the volume of work substantially.
A complete license application is normally reviewed by the FSC within 4-5 months after being submitted to the Commission.