Monday, 1th February 2010New Insurance Act and Regulatory Code

Codes Come into Effect

Several new pieces of BVI financial services legislation will come into effect shortly, including the Insurance Act, 2008 , the Financing and Money Services Act, 2009 and the Regulatory Code, 2009.  Effective dates are as follows:

The Insurance Act, 2008 replaces the Insurance Act, 1994 and the Insurance Regulations, 2009, which were gazetted on 22 December, 2009, replace the Insurance Regulations, 1995. 

The Regulatory Code, 2009, has been issued by the British Virgin Islands Financial Services Commission.  The Code contains detailed requirements that support the general framework established by the primary financial services legislation and will affect the operations of service providers licensed in the British Virgin Islands as banks, trust companies, company managers, insurers and money service businesses.

It should be noted that non-compliance with the requirements of the Insurance Act 2008, carries far more significant penalties than the previous Act.  These penalties, which range from USD10,000 to USD75,000, apply to offences committed by Insurers, Insurance Managers, Insurance Intermediaries, Actuaries and Auditors.   The BVI Financial Services Commission has exercised it's powers to apply administrative penalties. Both Insurers and functionaries must recognise this as a clear signal that the BVI Financial Services Commission will treat non-compliance with the Insurance Act 2008 seriously.  For further information, please contact Andrea Douglas.