Category Archives: Client Advisories

Following our client advisory issued on 11 January 2023, the BVI Virtual Assets Service Providers Act, 2022 (the “VASP Act”) will come into force on 1 February 2023. 

BVI has become one of the leading jurisdictions for the establishment of virtual asset legal structures over recent years, and the enactment of the VASP Act demonstrates the BVI’s commitment to the virtual asset sector. 

This advisory discusses a recent decision of Mr Justice Doyle, who has provided welcome guidance in relation to the scope and extent of sanction applications brought by official liquidators.

CIMA has recently issued an updated rule and regulatory procedure in respect of the cancellation of licenses or certificates of registration for regulated mutual funds and registered private funds respectively.

The Supreme Court in England in BTI v Sequana [2022] UKSC 25 has clarified when directors owe duties to the company that should take into account creditors’ interests. The decision will be highly persuasive in the Cayman Islands on directors’ duties.

The issue which the General Licence addresses is where a Designated Person owns more than 50% of an investment fund which has hitherto meant that the fund is paralysed and all of its assets are frozen. This provides relief from aspects of the financial sanctions imposed in the Cayman Islands by the Russia (Sanctions) (Overseas Territories) Order 2020 (the “Order”).

With effect from 1 December 2022, all BVI entities that fall within the definition of a virtual asset service provider (a “VASP”), as set out in the recently amended BVI Anti-Money Laundering Regulations (the “AML Regulations”) and Anti-Money Laundering and Terrorist Financing Codes of Practice (the “Code”), will be required to comply in full with BVI anti-money laundering, counter-terrorist financing and anti-proliferation finance legislation (together the “BVI AML Laws”).

The British Virgin Islands (“BVI”) continues to demonstrate its commitment to ensuring that its financial services industry is aligned with international best practices, as set by bodies such as the Global Forum on Transparency and Exchange of Information for Tax Purposes and the Financial Action Task Force. To this end, the BVI Business Companies Act and the BVI Business Companies Regulations were recently amended by the BVI Business Companies (Amendment) Act, 2022 (the “Amending Act”) and the BVI Business Companies (Amendment) Regulations, 2022 (the “Amending Regulations”).

The Courts of the Cayman Islands have introduced new measures concerning the judicial mediation of disputes, which continues a trend towards the increasing use of alternative dispute resolution methods.

This advisory discusses the judgment in the matter of Green Asia Restructure Fund SPC which provides further clarity regarding the relatively untested jurisdiction for creditors to appoint receivers to wind up a SP, and builds upon the judicial guidance provided last year in Re Obelisk Global Fund SPC, uncertainty still lingers.