1. Deputy Managing Director
Compliance Regime
Kenneth Baker
Deputy Managing Director
Financial Services Commission

2. 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
Financial Services Commission

3. 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
Financial Services Commission

4. 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
Financial Services Commission

5. 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

6. Financial Services Commission
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

7. Financial Services Commission
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

8. Financial Services Commission
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

9. Financial Services 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.
Financial Services Commission

10. Financial Services Commission
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

11. Financial Services Commission
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

12. Financial Services Commission
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

13. 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
Financial Services Commission

14. Compliance Oversight -Banks
General bank licensee – BVI resident individual
Restricted bank licensee – BVI resident individual
Financial Services Commission

15. 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
Financial Services Commission

16. 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
Financial Services Commission

17. Compliance Oversight - Insurance
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
Financial Services Commission

18. Compliance Oversight - Insurance
All of the following must appoint an approved BVI resident individual:
Agents;
Brokers; and
Insurance Managers.
Financial Services Commission

19. 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)
Financial Services Commission

20. 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
Financial Services Commission

21. 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

22. Financial Services Commission
AML Code of Practice
The AML Code of Practice is to be amended in line with proposed new Section 34 FSCA
Financial Services Commission

23. Financial Services Commission
Implementation
Financial Services Commission (Amendment) Act, 2006
Distribute answers to FAQ
Distribute Guidance Notes
Distribute Application Forms
Advise implementation date of regime
Financial Services Commission

24. Financial Services Commission
Contact details
Financial Services Commission