compliance regime

Financial Services Commission 1

Compliance Regime

Kenneth Baker

Deputy Managing Director


What is a Compliance Regime?

• Appointment of an individual to oversee the compliance function

• Development & application of compliance policies and procedures

• Review of compliance policies & procedures to test effectiveness

• On-going training for employees


Current Regime – Compliance Officer

• Regulated Person designates one 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


New Regime - Individual with Responsibility for Compliance

Oversight• Licensee shall designate one of his

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


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.


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.


New S.34(2) FSCA

Licensee shall establish and maintain a compliance procedures manual complying with the requirements specified in Regulatory Code


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.


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.


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.


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.


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


Who will Oversee the Compliance Function?

• Banks

• Company Managers

• Insurance Companies

• Insurance Intermediaries

• Private & Professional Funds

• Recognised Managers

• Managers and /or Administrators

• Public Funds

• Trust Companies


Compliance Oversight -Banks

• General bank licensee – BVI resident individual

• Restricted bank licensee – BVI resident individual


Compliance Oversight - Fiduciary Services

• Company Managers – BVI resident 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


Compliance Oversight - Insurance

• Captive insurer – Insurance Manager, otherwise an approved, BVI resident individual

• Credit Life re-insurer – Insurance Manager, if one exists, or an approved, BVI resident individual



• Locally incorporated Domestic 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



All of the following must appoint an approved BVI resident individual:

• Agents;

• Brokers; and

• Insurance Managers.


Compliance Oversight - Investment Business

• Private & Professional Funds – 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)


Compliance Oversight - Investment Business

• Recognised Managers – 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


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


AML Code of Practice

The AML Code of Practice is to be amended in line with proposed new Section 34 FSCA


Implementation

• Financial Services Commission (Amendment) Act, 2006

• Distribute answers to FAQ

• Distribute Guidance Notes

• Distribute Application Forms

• Advise implementation date of regime


Contact details

• [email protected]

• [email protected]

compliance regime

Documents

fscathe commission

compliance oversightindividual

compliance oversightlicensee

new regime individual

new section

fscaindividual responsible

fsca licensee

andevery licensee