The Vanuatu Financial Services Commission is a regulatory organisation that supervises and regulates Vanuatu’s finance industry. It plays the role of an efficient registry so that the finance industry professionals may be satisfied. VFSC was previously known as the Registrar of Companies and the Official Receivership Department of the Treasury.
After independence, it became the Ministry of Finance and Economic Management. The commission was formally established in 1993 under the Vanuatu Financial Services Commission Act No. 35. The VFSC was introduced to provide licenses for financial service corporations.
Its main aim is to prevent money laundering and to maintain the reputation of Vanuatu’s financial market. VFSC is responsible for administering the legislation of financial markets in Vanuatu.
History of VFSC
Before its formal establishment, the authority was known as the Registrar of Companies and the Official Receivership Department of the Treasury.
It was established under British Administration way back in 1971. After independence in July 1980, the commission formed in Vanuatu was known as the Ministry of Finance and Economic Management. The Vanuatu Financial Services Commission was officially created in December 1993.
VFSC holds its main office in Port Vila, Vanuatu. Another office is located in Santo, Vanuatu.
Aims of VFSC
The Vanuatu Financial Services Commission strives to regulate and supervise the finance market. The main aim of VFSC is to protect the integrity of the financial industry of Vanuatu.
Additional objectives of the commission include:
- To formulate and implement the appropriate strategies to achieve the desired effect on the finance industry.
- To work as a team to improve the outcomes.
- To provide an impressive extent of customer service.
Responsibilities of VFSC as a regulatory entity
The Vanuatu Financial Services Commission serves as a regulatory entity for the financial market of Vanuatu. The commission is responsible for enabling its clients and implementing strategies to ensure a high level of industry compliance. The responsibilities of VFSC are:
- To adopt technology that will facilitate and encourage online servicing of the clients.
- To have efficient, complete and up-to-date legislation related to the financial market.
- To be recognised for their administrative jurisdiction.
- To have sufficient levels of human resources in each of their main functional areas.
- To implement methods that will ensure a high level of industry compliance.
- To promote the finance centre at an international level.
- To provide supervision of the financial businesses.
- To protect the public in Vanuatu against financial loss and dishonesty.
- To assist the Government on matters about any Act or Regulation relevant to financial business.
- To be accountable for the general administration and the collection of payments.
- To meet our customers’ needs and be fair to all the clients.
- To make the best use of technology to improve the benefits.
- To maintain the integrity and reputation of the financial market.
VFSC legislation
Along with the Reserve Bank of Vanuatu, VFSC is responsible for enacting legislation and supervisory activities on the following subjects:
- Anti-Money Laundering
- Counter-Terrorism Financing
- Business Names Act
- Company and Trust Services Providers
- Charitable Associations (Incorporation)
- Credit Unions
- Dealers In Securities (Licensing)
- Electronic Transactions
- E-Business
- Financial Institutions
- International Banking
- International Companies
- Mutual Funds
- Offshore Limited Partnerships
- Personal Property Securities
- Trade Unions
- Unit trusts
Other companies, institutions or clients related to the financial market can also be included in this list.
Governance
The Vanuatu Financial Services Commission is headed by a Commissioner as its Chief Executive Officer. The Commissioner reports to a Board of Directors.
This board is appointed by the Minister of Finance and Economic Management. The Board of Directors is composed of 7 members who serve a term of 5 years. The Commissioner is assisted by a Deputy Commissioner. Departments that report to them include Supervision, Registration, Corporate Service, and Legal Enforcement & Insolvency.
Members
Members of the VFSC include most companies that are related to the financial market. Other VFSC members are company providers, financial institutes, and E-Businesses.
The investors or members of the finance industry must be registered under a regulatory body. Customers that need to register their company in Vanuatu are mandated to be licensed by the VFSC.
Facilitating clients
Various departments of the Vanuatu Financial Services Commission work diligently to facilitate members and protect market integrity.
For example, the Corporate Services Department of the VFSC works to facilitate improved individual and executive performance. It also seeks to meet statutory obligations and ensure the current and future survival of the commission. In addition, VFSC ensures that they have technology that will facilitate and enable online servicing of customers.
Requirements for the registration
The clients wanting to be registered by the VFSC have to fulfil some important requirements. Accordingly, the following submissions are required for authorised persons associated with the applicant, all directors and officers, shareholders and the ultimate beneficiary.
– Resume or CV summarising the experience in brokerage activities and qualifications.
– Notarised copies of the permit.
– Evidence of residential address.
– Original bank references.
– Certificate of no criminal record.
– Declaration of no history of bankruptcy.
The clients that meet the requirements are registered under the commission.
Financing of NFSV
VFSC is primarily financed by the payment made by the clients. This includes the fee paid by the clients during the registration and consultation. These payments comprise of the following:
- The regulatory application fee
- The governmental fee
- The regulatory consulting fee
- The legal fee
The members are also required to pay the entry fee while registering. The amount of the dues vary for each company, provider or client. This amount depends on the following:
- The number of assets.
- The number of personal funds.
- The kind of activities of that particular client.
Securities license
A license issued by the Vanuatu Financial Services Commission is known as a ‘Securities License’. This license enables the client to buy, sell and trade in the following securities:
- forex
- commodities
- future
- shares
- bonds
The companies or providers having this license are authorised to conduct their respective businesses in the finance industry.
Bottom line
To sum it all, the Vanuatu Financial Services Commission was created to improve and protect the integrity of the financial markets. In addition, the commission facilitated its clients by providing them good customer service. VFSC also works to protect the environment of Vanuatu against financial loss and deception.