RoadTown, Tortola - Premier and Minister of Finance, Honourable Ralph T. O’Neal, OBE, said that the recently passed Securities and Investment Business Act will modernise current business regimes.

The bill received its second and third readings at the Eighth Sitting of the Third Session of the First House of Assembly on Monday and was subsequently passed; becoming an Act.

“The objective of this bill is essentially to modernise the Territory’s mutual funds and investment business regimes, and introduce appropriate legislative provisions in relation to securities business,” said Honourable O’Neal.

He continued, “This process takes into full account current and emerging international standards of regulation as they relate to the regulation and administration of hedge funds and securities business.”

The Minister of Finance explained, “It had become necessary for the Territory to review its laws and regulatory and supervisory frameworks to ensure appropriate synergy with its obligations as a full member of International Organisation of Securities Commissions (IOSCO).”

According to the Premier, the Virgin Islands became a member of the IOSCO, “on the basis of its full compliance with that organisation’s Multilateral Memorandum of Understanding.”

“It is therefore considered the duty of the government, the Financial Services Commission, this Honourable House, and indeed the entire Territory, to ensure the momentum gained by such a membership is not lost,” said Honourable O’Neal.

The Minister of Finance also explained that when the act is fully in place, it is intended, “to ensure that the Territory is compliant with the ‘Objectives and Principles of Securities Regulation’ issued by the IOSCO, as well as other internationally accepted standards and best practises.”

“As one of the premier financial centres, the Territory must necessarily subscribe to establish international standards of regulation and supervision in all the key sectors of the economy,” he added.

Honourable O’Neal referenced the global economic situation. He said, “The recent global financial crisis is a stark reminder of the significance for better, as opposed to more regulation and policing of the financial services perimeter.”

“The approach is consistent with government’s policy of strengthening and safeguarding the Territory’s financial services sector. While at the same time buttressing its international cooperation regime and balancing the established standards against the needs of the Territory,” he said.

The act is divided into six parts, specifically part 1, which deals with investment business and details the categories of licences and the requirements for being granted a licence by the commission; part 2, which addresses the public issuance of securities; part 3, which covers mutual funds; part 4, which outlines the provisions of the general application; part 5, which addresses miscellaneous provisions; and part 6, which provides six schedules.

The Securities and Investment Business Act is in keeping with the Government’s goal to strengthen the financial services sector and to maintain the Territory’s position as a world-class jurisdiction by enacting cutting edge financial legislation.