BVIFSC Regulatory Entity

BVI Regulatory Entity
1.
4.8 stars from 350 ratings

Broker Verified

Trade Nation is a truly Multi-Regulated Forex and CFD broker with offices located globally. They offer 24/5 support from market open to close.
CFD service. Your capital is at risk.
Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread trading works and whether you can afford to take the high risk of losing your money.
2.
4.7 stars from 509 ratings

Broker Verified

Markets.com provides a unique trading experience for forex and stock traders alike. They are a global multi-regulated CFD broker regulated in SA.
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
4.6 stars from 785 ratings

Broker Verified

AvaTrade is truly a global broker, regulated across 5 continents. Their Cryptocurrency markets are available for trading 24/7. Local support.
CFD service. Your capital is at risk.
71% of retail investor accounts lose money when trading CFDs with this provider.

BVIFSC is the abbreviation of the British Virgin Islands Financial Services Commission. This commission entity works as the autonomous regulatory authority responsible for supervising, regulating, and inspecting different financial services within the BVI.

Different activities are part of the BVIFSC inspection at the financial service. This includes trustee business, insurance investment business, and banking as well as insolvency services. It even accompanies the registration of the companies, as well as limited partnerships and intellectual property.

The BVI regulatory entity was introduced in the year 2002. Since 2002, this commission has been accountable for carrying out all those functions that the government handled through the Financial Services Department. Being the financial service regulator, the commission is also accountable for promoting public understanding in handling the financial system.

As a result, it reduces financial crime and even prevents any significant market abuse.

With time, the BVI entity has strengthened its system functioning and is now associated with few extensive international agreements.

Structure

The primary mission of BVIFSC is to uphold the integrity of the British Virgin Islands, being a well-regulated centre of international finance. It even protects the varied economic interests of the Territory by:

  • Protecting all the interests associated with market participants or the general public.
  • Ensuring proper industry compliance with the highest international regulatory standards as well as excellent business practices.
  • BVI plays a significant role against cross-border and white-collar crime. It even safeguards the confidential and private details of legitimate business transactions.

Core functions of BVI

A few of the core functions performed by BVIFSC are discussed below:

  • Protect the consumers by ensuring that all the individuals and firms are fully authorized to provide some financial services. These services need to be within the BVI, and they should be financially sound and competent.
  • They police the overall perimeter of the regulated activities and hence pursue enforcement actions against any business or the individual. Strict action will be taken against someone who is violating the BVI financial services laws.
  • Detecting and monitoring the financial crime to assist someone in the prosecution of such sort of crime.
  • Sustain the international and domestic confidence within the industry of BVI financial services. Therefore, they do even contribute towards the development and growth of the industry.
  • Ensure that a proper and fit regulatory environment is being carried out. In this environment, all the financial institutions should be providing quality services and products to gain some economic benefit from the BVI.
  • Brings an improvement in the public understanding related to the risks and benefits of any financial product.
  • Consulting the government and industry on the financial services legislation, basic regulations, broad supervisory policy and vast practices.
  • Providing a proper system for continuing the education for the financial service practitioners.
  • Monitoring the overall effectiveness of the financial services legislation.
  • Facilitate innovation in various financial services.
  • Taking into consideration the international scenario of financial regulation and the financial service business. This will also include maintaining regular contact with the authorities of foreign regulations.

What are the pros of the BVI entity?

  • BVIFSC works as the legal entity where they function in a completely separate zone compared to their members. Therefore, they have a legal capacity to sue anyone or even get sued in their name under the BVI law.
  • BVIFSC does not uphold any corporate tax. Only those taxes are involved, which are paid by the local companies having local employees. Therefore, there is no need to pay any tax if you are linked with BVI but have no local operations.
  • There is a need for just 1 shareholder and 1 director. A corporate shareholder is also allowed.
  • Capital requirements are not part of it.
  • BVIFSC is not based on any corporate income tax or customs duties as well as wealth tax. Therefore, it does not include VAT. But the companies should maintain a proper record and should prepare their annual accounts. There is no need to audit or file the accounts. But the companies should have the account copies for the inspection process.

BVI Regulatory Entity

Broker
Rating
Regulated
Bonus
Min. Deposit
Max. Leverage
1.
Trade Nation Broker Review
4.8 stars from 350 ratings

Broker Verified

FCA, FSCA, ASIC, SCB

N/A

USD 1

1:200

Review Sign up Sign up
CFD service. Your capital is at risk.
Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread trading works and whether you can afford to take the high risk of losing your money.
2.
Markets.com Broker Review
4.7 stars from 509 ratings

Broker Verified

FCA, ASIC, CySEC, FSCA, BVIFSC

up to 25%

USD 100

1:300

Review Sign up Sign up
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
AvaTrade Broker Review
4.6 stars from 785 ratings

Broker Verified

FSCA, ASIC, B.V.I FSC, FSA

up to 20%

USD 100

1:400

Review Sign up Sign up
CFD service. Your capital is at risk.
71% of retail investor accounts lose money when trading CFDs with this provider.

What are the cons of the BVI entity?

A few of the common cons of the BVI entity are discussed below:

Costs

The cost of the BVIFSC is quite a lot higher compared to the rest of the IBC jurisdictions. But still, it is considered to be competitive. It would be rare to look for the BVI incorporation fees, which are under USD 1,000. You can probably expect something closer to $1,500 to $3,000 to acquire reputable services of a provider. Hence, annual renewal fees will be around $800 to $1,500 in the majority of the cases.

Limited activities

Few activities are not permitted to be undertaken in the BVIFSC entity. This includes providing investment or banking services to the third parties, casino/betting services, providing trust services or any reinsurance or insurance services to the third parties.

Repute

BVI’s international reputation has been strongly impacted in the market as a part of tax evasion or the money laundering controversial cases. Some organizations such as OECD have also given BVI an unfavourable rating.

Complex

It would be a little complicated to set up an IBC in BVIFSC. All the activities need to be on legal terms within your home country and in BVI. Compliance screening is generally followed up with some questions and the details of business which are clearly outlined. Few providers even demand a complete business plan.

BVI offshore banking

The last disadvantage is linked with the offshore banking of BVIFSC. BVI has a relatively small banking sector. Accounts can be opened either remotely or by visiting the bank branch in your country. Some of the banks even prefer calling the account holder in person for better verification.

Bottom line

To end the discussion, the BVIFSC entity works as a perimeter where it monitors and regulates all the activities that are part of the financial service industry. In addition, it safeguards the public from any unauthorized or illegal business operation within BVI. In short, they facilitate the provision of regulatory and legal assistance for the law enforcement agencies according to the BVI laws.

Relevant Posts

Leave a Reply

Trade Nation TN Logo

$1 Minimum Deposit

Trade Nation TN Logo

$1 Minimum Deposit

South Africa's Top 3 Brokers

Minimum
Deposit

USD1

Welcome Bonus

N/A

Minimum
Deposit

USD100

Welcome Bonus

25%

Minimum
Deposit

USD100

Welcome Bonus

20%

South Africa's Top 3 Brokers

Trade Nation TN Logo

Minimum Deposit

USD1

Max. Leverage

1:200

Welcome Bonus

N/A

Markets.com Logo

Minimum Deposit

USD100

Max. Leverage

1:300

Welcome Bonus

up to 25%

AvaTrade Logo

Minimum Deposit

USD100

Max. Leverage

1:400

Welcome Bonus

up to 20%