With its high quality financial services, sound regulatory framework and political stability, the British Virgin Islands is proud to uphold its reputation as one of the world's pre-eminent corporate domiciles.

Since the adoption of its pioneering International Business Companies (IBCs) legislation in 1984 to the introduction of the new BVI Business Companies Act (BVI BCA) in 2004, the BVI has consolidated its position as a high-quality international financial centre, regularly undertaking programmes to expand its financial services in order to meet the demands of international financial markets.

Such an approach means that there are many advantages to conducting business in the BVI. First among them is the excellent partnership that exists between the private and public sectors and the commitment of both to creating a centre that is a leader in the provision and regulation of financial services.

International Business Companies
The BVI has earned a solid reputation as one of the world's premier domiciles for International Business Companies. The new BVI Business Companies Act of 2004 went into effect on January 1, 2005 taking the virtues of the previous Act and combining them with a range of flexible and forward looking features to meet the requirements of today's international business community. Many experts have described the BVI BCA as a world-leading example of progressive and modern legislation.

Mutual Fund Administration
The Mutual Funds Act passed in 1996 provides a modern regulatory regime for mutual funds. Crucial and in tune with the BVI's regulatory focus, the law covers both funds that are registered in the BVI but operate elsewhere, as well as funds registered elsewhere but operating in the jurisdiction. The BVI's attractiveness to international business is obvious from the growth in its sector, with more than two thousand active recognised or registered funds and over five hundred managers and/or administrators licensed at the end of 2004. The BVI is a serious contender in the offshore world for the establishment and regulation of mutual funds and their functionaries.

Insurance Management
The British Virgin Islands has also developed into a major international insurance centre in recent years. With steady year on year growth, the BVI has firmly placed itself on the insurance domicile map and has consolidated its position as the third largest "offshore" domicile in the world with more than 543 captive insurance companies based in the jurisdiction.

Trust Settlement
With the recent enactment of the Virgin Islands Special Trust Act, 2003 (VISTA), the British Virgin Islands has consolidated its position as the location of choice for international trust settlements and operations. VISTA has generated a substantial amount of interest from the legal community and corporate professionals and business entrepreneurs alike. In the relatively short period since the enactment of the legislation, more than 100 VISTA trusts are estimated to have been created, with the take up rate increasing substantially in 2005. VISTA has been acknowledged by leading trust and estate practitioners to be a pioneering piece of legislation that provides an innovative and groundbreaking alternative regime for the fiduciary services industry.

Accounting and Legal Services
The world's largest accountancy firms all have a presence in the BVI and there are clear signs of a growing demand for their services, particularly in the areas of mutual funds, auditing and insolvency. In addition, legal services continue to expand on the Island nation with the recent influx of several prominent international law firms into the Territory. BVI lawyers are widely respected throughout the international financial services sector and several BVI law firms have opened offices in Europe and Asia, all of which work closely with their offices in the BVI.

Banking & Asset Management
The BVI offers investors comprehensive banking services of the highest standard. The Territory is able to offer current accounts and deposits in all major convertible currencies, foreign exchange trading, securities and commodities trading, international remittance, asset backed lending and collateral credits, corporate finance and custodian bank services.

As with the other services, investment management is also a growing business in the BVI, largely supported by the banks that are based in the jurisdiction. In particular, the BVI has seen a consistent growth in the number of hedge funds that have registered as a result of the professional support and specific expertise that firms in the jurisdiction provide in this area.

Regulatory Framework
Collaboration between the government and the private sector from the very early stages has ensured a systematic, strategic and effective approach to the development of financial services and there is legislation in all the key sectors.

The focus of the legislation has always been to provide an attractive operating environment for business while safeguarding the integrity of the jurisdiction. To achieve this objective the Government of the BVI has ensured that the Territory remains ahead of the curve as far as legislation and regulation is concerned and, as a result, the jurisdiction is widely recognised as one of the best regulated international financial centres in the world.

Furthermore, the collaborative approach between the government and the private sector has ensured the robustness of the new legislation that has recently been passed, including the Insolvency Act, 2003, and the aforementioned VISTA trust legislation. This approach has enabled the BVI to offer clear advantages for the international business community. These include:

• Enduring political and economic stability
• A legal system based on English Common Law
• Status as a British Overseas Territory, carrying additional security
• A cost-effective and business-friendly operating environment
• A pool of experienced and knowledgeable professionals
• A strong currency (US$) with no exchange controls
• A political commitment to enact policies and legislation that meet business needs and protect the integrity of the BVI

The BVI International Finance Centre
As part of its growing commitment to the financial services industry, the government of the BVI established the BVI International Finance Centre (BVI IFC) in 2002. The BVI IFC is a dedicated unit within the Ministry of Finance & Economic Development with the remit to enhance and promote the reputation of the BVI as a premier international finance centre to all current and future stakeholders and to provide assistance and advice to those seeking to utilise the facilities and capabilities of the BVI as an international centre for financial services. Its aim is to give a voice to the Territory's financial sector and ensure that the BVI retains the unique balance it has created in having a sound regulatory framework, an entrepreneurial business community and a government that is committed to developing innovative legislation.

The launch of the Centre marked the final stage in the government's plans to separate the marketing and regulatory functions for the financial services sector. Regulation is now the sole responsibility of the BVI Financial Services Commission, which was also established in 2002.

For more information about financial services opportunities and offerings in the British Virgin Islands, please contact Humphry Leue, Chief Operations Officer of The BVI International Finance Centre, at (+1 284) 494-1509, fax (+1 284) 494-1260 or via e-mail at hleue@gov.vg.

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