As of 2012, Financial Services Authority St. Vincent and the Grenadines operates under an Act of Parliament, the Financial Services Authority Act. Several entities or businesses within the financial sector are regulated by it as a single regulatory unit.
As a result, it provides guidance and supervision for a wide range of regulated matters.
The Financial Services Authority was established by Parliament as a new institution for managing, monitoring, and controlling international financial services. Moreover, it supervises both international and domestic non-bank institutions in this country.
The International Financial Services Authority (IFSA) and the Co-operatives Division of the Ministry of National Mobilization, the Department of Social Development, and the Supervisory and Regulatory Division within the Ministry of Finance are all part of this regulatory entity.
This regulatory body plays a major role in streamlining the functions, consolidating the resources and optimizing the efficiencies.
Main role and function
The FSA is fully responsible to the Government of St. Vincent and the Grenadines for the proper enforcement and administration of those enactments that fall within their governing legislation. There are several requirements and compliances generated by the FSA Act and a few other laws. To get registered under the FSA, an organization must adhere to all regulations and guidelines.
Additionally, this regulatory body is responsible for ensuring that each of the licensed financial entities is managed according to the rules and regulations. As a result, they ensure that all the organizations are financially sound. In addition, they also have the power to intervene in all affairs governed by the regulatory entity to protect customers.
Offer professional services to financial sectors
The Financial Services Authority provides professional and efficient services in non-banking and IFS financial sectors. Limited liability companies and international trust organizations can be registered within one business day.
The transactions associated with the international business are handled by the service assistance of ‘Registered Agent & Trustee’. Registered Agents & Trustees are fully licensed.
They are regulated by the regime under the supervision of the Registered Agent Trustee (Licensing) Act, Chapter 105 of the Revised Laws of St. Vincent and the Grenadines 2009.
The FSA aims to provide accurate and timely information on international initiatives in a proactive manner. Therefore, they provide information about those areas that may have an impact on the financial sector.
The Authority has been the major designated representative of the Minister of Finance on various international initiatives, including the OECD.
Minimum paid-up capital for insurance and pension plans
There are few basic capital requirements of minimum paid-up share for any long-term insurance business. They should be working as a local company with a maximum share of $2Million.
A foreign company should have a share of at least $5million as the fully paid up in cash. The mutual company should have uncommitted reserves of a maximum of $5M.
Other businesses that are not into long-term insurance should have a minimum share capital of $1million as a local company. It should not be less than $2.5 million for foreign companies and the same for mutual companies.
How to avail international banking license from SVGFSA?
To obtain an international banking license from the Financial Services Authority, the company needs to ensure that it is performing its operations following the banking organization’s instructions.
Before engaging in any banking business, the company should obtain a license from the FSA. The two main categories of international banks are Class-A international banks with capital requirements of US$3 million and Class-B international banks.
In addition, they should have a statutory deposit of around US$500,000.
A Class B international bank should have capital requirements of around US$0.5M and a statutory deposit of US$100,000.
If the bank maintains a fully paid-up capital of approximately US$500,000, the Class B banking license will be issued. In addition, the license holder should invest or deposit a maximum of $100,000.
Furthermore, all international banks should have a physical presence in St. Vincent and the Grenadines so that they can conduct business there
Details about Class A and Class B are discussed below:
Class A
- Application for the non-refundable fee is around US$1,000.00, which is payable.
- Each bank that is part of Class A should be maintaining an approximate capital fund which should be three million US dollars (US$3,000,000.00).
- All the banks in Class A should be holding an investment or a deposit of at least five hundred thousand US dollars (US$500,000.00).
- The license fee of Class A is US$10,000.00.
- Annual renewal fees are US$10,000.00
Class B
- Application for the non-refundable fee is around US$1,000.00, which is payable.
- Each bank that is part of Class B should be maintaining an approximate capital fund which should be three million US dollars (US$5 00,000.00).
- All the banks in Class B should be holding an investment or a deposit of at least five hundred thousand US dollars (US$100,000.00).
- The license fee of Class B is US$10,000.00.
- Annual renewal fees are US$5,000.00
FSA international fees structure (USD)
1. For business companies
| Registration | $125.00 |
| Annual Fee | $100.00 |
| Other Application | $50.00 |
2. For trust
| Registration | $300.00 |
| Annual Fee | $150.00 |
| Other Application | $50.00 |
3. International insurance companies
| Application fee | $125.00 |
| The annual fee for Classes: I, II, III | $3000.00 |
| The annual fee for class: IV, V | $2,000.00 |
| Annual Fee For Agent/Broker/Manager | $500.00 |
| Any Other Application | $50.00 |
4. For registered agents
| Application fee | $500.00 |
| Annual license fee | $1,200.00 |
| Other Application | $50.00 |
5. International banks
| Application fee | $125.00 |
| License Fee-Class A | $10,000.00 |
| License Fee-Class B | $10,000.00 |
| Annual Fee-Class A | $10,000.00 |
| Annual Fee-Class B | $5,000.00 |
6. Single LLC
| Registration of a new LLC | $125.00 |
| Registration of an LLC from another jurisdiction | $50.00 |
| Annual fee | $100.00 |
| Issuing a certificate of dissolution or discontinuance | $250.00 |
Bottom line
SVGFSA, in summary, plays an important role in regulating and supervising the financial businesses associated with the financial market.
To get registered under this regulatory body, your organization must adhere to all the rules and regulations described by the SVGFSA. SVGFSA’s official website provides detailed information about license regulations and fees.