The Commission published the Lending, Credit and Finance Rules and Guidance, 2023 (the "LCF Rules") on 19 January 2023. Part 6 (Consumer Protection and Unfair Agreement Terms) of the LCF Rules applies to: all regulated agreements1 between customers and credit providers; and all agreements to provide ancillary services in connection with regulated agreements. Any clauses of such agreements which contain "unfair" terms are unenforceable ...
Overview Persons undertaking "credit business" will need: a licence to do so (a "Part II Licence"); and to be regulated by the Guernsey Financial Services Commission (the "Commission") ...
Any dog owner whose hound has ever become stuck down a rabbit hole will appreciate the aphorism, “Never get into anything you don’t know how to get out of”. Like a rabbit hole, getting out of the insurance business tends to be less straightforward than getting in. For that reason, specialist “run-off” carriers offer exit solutions to insurers who have ceased writing new business ...
The Proposed VASP Bill primarily: (i) defines the virtual assets activities that require registration; (ii) prescribes the criteria for a virtual assets service provider (“VASP”) to register; (iii) sets out the ongoing requirements and obligations of VASPs; and (iv) specifies the enforcement and general powers of the Commission as well as the penalties for contravening or failing to comply with, a provision of the Proposed VASP Bill ...
BACKGROUND Complexities arise when arranging financings to co-investment structures, especially if the credit support includes security over shares granted by some (but not all) of the shareholders ...
What is your outlook for Chinese businesses and investment as we approach the end of 2021? China is, and will continue to be, the strongest market for offshore law firms in Asia. China's outbound investment activity has been subdued since 2016, due to domestic constraints on outbound capital flows and tighter scrutiny of Chinese investments abroad ...
Nothing lasts forever... or does it? New perpetuities legislation introduced in the Cayman Islands The "old" rule The rule against perpetuities currently applicable in the Cayman Islands is derived from English law and is aimed at preventing individuals from 'tying up' their assets in trust indefinitely. Broadly speaking, the rule prescribes a set period – the perpetuity period – within which time the interest of each beneficiary must vest (i.e ...
Norwich Pharmacal applications against BVI registered agents: BVI Commercial Court provides new guidance In its recent judgment, the BVI Commercial Court has provided clarification and guidance on Norwich Pharmacal applications against BVI registered agents ...
Introduction In recent times, the Court has been asked to hear cases where a General Partner ("GP") has failed to discharge its duties in relation to the affairs of an ELP. Without the co-operation of the GP, Limited Partners are often left bereft of information relating to assets of the ELP. They cannot properly realize their investments under the ELP and, even if they can, there is a spectre of doubt over whether the distributions represent their full entitlement in the assets of the ELP ...
As we enter the new year, we also welcome the implementation of the British Virgin Islands ("BVI") Business Companies Act (the "Act") amendments which came into force on 1 January 2023. The amendments update several parts of the Act and continues to conform with best practice and international standards ...
What is the intention of the new regime? By replicating and improving upon successful asset holding structures adopted by fund managers in jurisdictions like Luxembourg, the QAHC regime is intended to bolster the UK funds industry by facilitating greater UK-based fund activities, amending certain aspects of the UK tax system which have hitherto made UK vehicles unattractive as asset holding companies ("AHCs") ...
The current prospectus rules The current Jersey definition of “prospectus” has often meant that a securities offer by a Jersey company is a prospectus for Jersey law purposes, even where an exemption from the obligation to produce an approved prospectus is available in other jurisdictions in which the offer will be circulated ...
The ESG Disclosure Rules have been introduced in response to the increased investor appetite for socially and environmentally responsible investments and to ensure that Jersey maintains its high regulatory standards amid global concerns regarding ‘greenwashing’ (firms marketing investments which appear more environmentally and socially focussed than they are in reality) ...
This typically involves (i) the manager/advisor performing investment business activities being registered with the Cayman Islands Monetary Authority (CIMA) under the Securities Investment Business Act (as amended) of the Cayman Islands as a registered person (registered person), or (ii) the fund being registered with CIMA as a mutual fund or private fund (Registered Fund and collectively with registered persons, regulated fund entities) ...
Muted voices: can beneficiaries of a STAR trust be empowered to play "devil's advocate" In In the Matter of the G Trust[1] the Grand Court of the Cayman Islands was asked by the trustee of a Cayman STAR trust to give directions in relation to the question of who should participate, and in what capacity, in an application for rectification of a deed supplemental to the trust (the "rectification application") ...
The Process Migration is the process which allows an overseas company to be registered as a Guernsey company in accordance with the provisions of The Companies (Guernsey) Law, 2008 (as amended) (the "Law") ...
A key concern for shipowners and lenders will be where to register these new vessels. In this briefing, we consider three factors that usually influence the choice of flag state: (1) financing considerations, (2) recognition for the flag and (3) speed, responsiveness and certainty. Introduction Choosing the flag state where a ship will be registered requires balancing different factors ...
For those considering such a move, there are various options open to them to make their relocation a reality: Residency Certificate for Persons of Independent Means Certificate of Permanent Residence for Persons of Independent Means Certificate of Direct Investment Residency Certificate (Substantial Business Presence) Residency Certificate for Persons of Independent Means A person can apply for a Residency Certificate for Persons of Independent Means ...
Carey Olsen’s Singapore team has considered the first reported British Virgin Islands (BVI) case on the court’s jurisdiction to determine a just and equitable winding-up application when faced with an arbitration agreement between parties. The authors also examine the trend in the Cayman Islands and in Hong Kong on this issue ...
Licensing under the POI Law “Controlled investment business” Carrying on controlled investment business involves three elements: engaging in a “restricted activity”; which is in connection with a “controlled investment”; and which is done by way of business ...
Introduction Parts of the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (“Law”) came into force on 1 January 2023.The Law introduces new licensing regimes for lending, credit and finance activities and provides UK-style consumer protection for retail and home borrowers. The Law replaces the registration regime under the Registration of Non- Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008 (“RNFSB”) ...
AML/ATF and Sanctions The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 provide that the Bermuda regulated sectors and relevant persons must apply enhanced customer due diligence to customers in high-risk jurisdictions ...
AML/ATF and Sanctions The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 require the Bermuda regulated sector and relevant persons to put in place policies and procedures in order to prevent activities related to money laundering and terrorist financing and to apply enhanced customer due diligence to high-risk jurisdictions ...
Directors Publicly available names of directors In 2016, the BVI Business Companies Act, 2004 introduced a requirement for all BVI companies to file the names of directors with the Registrar of Corporate Affairs (the “Registrar”). To date, the contents of the private register of directors have not been available for inspection by the public ...
What are Digital Assets? The Official Bermuda Definition The definition of "digital asset" under Bermuda's Digital Asset Business Act 2018 ("DABA") is: "anything that exists in binary format and comes with the right to use it and includes a digital representation of value that – (a) is used as a medium of exchange, unit of account, or store of value and is not legal tender… &nbs