27/01/22

From Features

BVI Report 2022

For nearly 40 years, the British Virgin Islands has been one of the world’s leading international finance centres; and is the go-to jurisdiction for the incorporation of companies to facilitate cross-border trade, investment and business.

Simon Gray from BVI Finance discusses how the financial services industry has continued to operate successfully during the course of the pandemic; and how the jurisdiction is taking advantage of new market opportunities in the African and Asia-Pacific regions.

We speak with Kenneth Baker, Managing Director of the BVI Financial Services Commission, who provides an overview of recent regulatory developments and initiatives in the jurisdiction; and discusses what the Commission will be focusing its efforts on in 2022 to ensure the BVI remains compliant with international standards. We also hear from Lorna Smith OBE from LGS Associates, who looks at the impact of the minimum corporate tax proposals on IFCs, with a particular focus on the BVI.

Our sector focus provides an overview of the latest trends and developments in the BVI's key industries. Martín A. Litwak from Untitled Strategic Legal Consulting discusses recent legal developments that have affected the BVI's investment fund regime; while Robert Lindley from Conyers looks at why the BVI remains a leading offshore jurisdiction for the establishment, administration, and maintenance of trusts.

Elsewhere, Richard Grasby from RDG Fiduciary Services examines what kind of entities are covered by the current Economic Substance rules and the types of activity requiring substance, as well as considering the impact on private wealth in the BVI.

Finally, the BVI is positioning itself as an attractive and advantageous jurisdiction for international commercial dispute resolution. Tim Wright and Izabella Prusskaya from Carey Olsen look at the BVI's wider role in the field of international arbitration; while Dancia Penn OBE QC discusses recent updates to the BVI IAC Arbitration Rules.

 

BVI

Future-Proofing For Continued Growth And Success

Simon Gray
Agora Consulting

In just over 30 years the British Virgin Islands (BVI) has firmly established itself as one of the world’s leading international finance centres and the go-to jurisdiction for the incorporation of companies – especially those created to facilitate cross-border trade, investment and business.

The foundations of the BVI’s success are its modern, flexible and efficient company, trust, and funds legislation which has been tailored to the needs of global business; its sound and stable government and respected financial regulation; and its cost effectiveness in addition to its tax neutrality. An important element remains the culture of collaboration that exists between regulator and regulated alike, leading to regulatory changes that are practical, proportionate and workable.  Perhaps this is best evidenced via BVI Finance’s many Working Groups which pool experts from all elements of financial services. 

The BVI has attracted a global talent pool with world-class expertise across the spectrum of international finance, from company incorporation through to mergers and acquisitions and advisory services on a range of complex global cross-border deals.

Are IFCs Collateral Damage?

The Global Minimum Tax and Its Impact

In October last year, I wrote an article ‘Are IFCs Collateral Damage? The Global Minimum Tax and Its Impact’ shortly after what the OECD referred to as ‘a groundbreaking tax deal for the digital age’[i].

The article referred to the ongoing intense negotiations between the OECD and members of the Inclusive Framework in the lead up to the October accord. This article updates the previous article, providing some thoughts on the latest developments.

Roughly three months after the US Treasury Secretary Janet Yellen had described the fact that for over 18 years US companies booked half of all foreign profits in just seven low tax jurisdictions as a race to the bottom; as a prime mover behind the final tax deal, she could change her tune to ‘…this deal will remake the global economy into a more prosperous place for American business & workers’.[ii]