Whether you are an individual or business, enrolling the assistance of an expert consultancy firm will assist you in facilitating the procedure towards securing a British Virgin Islands forex license and essentially speed it up. Obtaining a British Virgin Islands forex license is anything but a direct method as it includes submitting a broad scope of documents and accreditations.
It is accordingly advisable to look for proficient counsel and direction to help you with the whole cycle. This will empower you to comprehend the British Virgin Islands' forex license strategy and guarantee that you capitalize on your BVI forex license.
Nowadays, BVI Forex broker licenses are extraordinary interest bargains for some forex brokers.
As indicated by the Securities and Investment Business Act(2010), every one of the companies enrolled under the BVI Financial Services Commission (FSC) require to abide by each of their norms. Even for new forex brokers who are regulated under BVI FSC and have explicit laws and guidelines which are relatively new to the financial activity.
BVI Financial Services Commission
The British Virgin Islands Financial Services Commission is answerable for all financial administrations that are done inside the British Virgin Islands, including investment business, banking, insurance business, and insolvency administration. Likewise, the BVI FSC is liable for company development, company management, and intellectual property in the British Virgin Islands.
At last, the BVI FSC is additionally answerable for issuing BVI broker licenses for use in the BVI forex industry.
Today there is a lot of enthusiasm from forex brokers searching for BVI broker licenses. The BVI Financial Services Commission, in 2010, framed and merged into law the Securities and Investment Business Act of 2010.
This gave recently assessed a set of rules and guidelines for forex brokers and other investment business firms to comply with, that are independent of past acts. The new demonstration has brought all financial action up to the right degree of guideline for all investment business.
Today, all BVI broker licenses are controlled by the BVI FSC.
Icing over the cake would be to set up an offshore company and opening an offshore bank account simultaneously for the forex trading activity. Below mentioned are ten reasons to start an offshore forex trading company.
[Read: 10 Benefits of Forex Trading.]
Flexibility in fundamental requirements of a licensee under SIBA is as mentioned below:
- At least two directors are required. There are no nationality limitations.
- Prepare yearly inspected financial proclamations(i.e., appoint an auditor).
- Keep up sufficient capital assets to operate the business (No minimum is mentioned in SIBA. This is done on a case-by-case situation).
- Keeping up the Professional Indemnity Insurance (PII) or to give a detailed self-exemption to PII.
Compliance Officer Exclusion
The prevailing norm is that a licensee must appoint a compliance officer. Although the Financial Services Regulations(2010) excluded certain licensees from the commitment to establish a compliance officer given:
- the licensee doesn't have a physical presence in the British Virgin Islands and
- that it is either directed in the jurisdiction where its business is operated or is part of a group of companies that is dependent upon regulatory supervision.
License Application Forms
The practical forms you have to record as a component of the application are as follows:
- General Part- This is an objective(tick) style form wherein you demonstrate the kind of license required.
- Part 1- Here in this form, you have to highlight details of the candidate applying for the license and the key parties, your involvement with the business, compliance systems, financial assets, business strategy, fitness, ownership, and so on.
- Part 4- Address of the candidate's place of business in addition to the approved representative's details.
- Part 5- This form isn't necessary; however, it can be utilized to give any extra data that you wish to submit with the company's license application.
- Part 6- A statement that, to the candidate's information, all facts are valid and precise.
- Form B1- This application form is for the endorsement of external auditors.
- Form A- Application for endorsement of Directors, Compliance Officers, and Senior Officers. Every one of these people should provide, amongst other things:
- Affirmed copy of passport
- Financial, professional, and individual references
- An individual statement as to suitability for the job, and
- CV and confirmed copies of qualifications
Documentation to Be Provided by the Company
Here is a rundown of documents that should be given by the company as a component of the application:
- Articles of Association & Memorandum/ Certificate of Good Standing/ Certificate of Incorporation(Paragraph 5, Part 1)
- Letter clarifying the experience, fitness, and expertise that the company needs to maintain its business(Paragraph 6, Part 1)
- Form A should be finished by every shareholder/regulator, director, the compliance officer, and every senior official(Paragraph 8.1/9.1, Part 1)
- Letter from the company's auditor affirming its eagerness to represent the company (Paragraph 10.2, Part 1)
- Letter from our Lawyers of the BVI affirming their ability to represent the company (Paragraph 11, Part 1)
- Duplicate of the company's compliance manual, including customer acceptance procedures and know-your-client policies(Paragraph 12, Part 1)
- Capital prerequisites(Paragraph 13.1, Part 1)
- A statement of the capital of another company held, legitimately or through a subsidiary, as an asset of the Company (Paragraph 13.2, Part 1)
- Articulation of assets and liabilities of the company affirmed by a director(Paragraph 13.3, Part 1)
- In the event that the company has recorded audited accounts for as long as three years, copies to be provided(Paragraph 13.4, Part 1)
- Outline of insurance policy and a duplicate of the policy schedule. Every licensee is needed to obtain professional indemnity insurance(Paragraph 13.5, Part 1)
- Business strategy(Paragraph 14 of Part 1)
- Two references(if relevant) regarding the company, one of these references to be from a regulated company(Paragraph 18, Part 1), and
- Application to be submitted for the applicable license fee.
Type of License
The yearly licensing expense because of the BVI Financial Services Commission will rely upon what investment business you wish to embrace. Thus you should indicate precisely what services you be will giving.
Specifically, it will be useful if you can develop the scope of the forex trading services that will be given. Generally, it is helpful to know whether the customer will be:
- affecting trades in the capacity as an operator or is it going about as a market maker
- giving clients investment advice, and
- practicing their attentiveness and managing client portfolios.
Generally talking, there is an application expense of US$1,000 per class and a progressing yearly charge of $1,500 per class/subclass.
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