The change follows an amendment to schedule 1 of SIBA which came into effect earlier this year, as part of BVI’s implementation of its National Action Plan. The amendment adds “Instruments for foreign exchange”, i.e. contracts to exchange one currency for another, to the list of “Investments” regulated by SIBA. As a result, dealing or arranging deals in Forex contracts, or providing advice on, administering or managing Forex contracts (among other activities) are now regulated “investment activities” under schedule 2 of SIBA.
BVI companies carrying out investment activities in relation to Forex contracts are required to obtain the relevant class of SIBA licence from the BVI Financial Services Commission, unless an exemption applies. Unlicensed Forex activities are unenforceable and constitute an offence.
Unauthorised companies may not solicit investment business, including the provision of Forex services.
