Changes in BVI Law Affecting Private Trust Companies

We wish to draw to your attention certain changes in BVI law which affect unlicensed private trust companies. This issue will not affect you if your company does not act as a trustee or protector of a trust and it will not affect you if it acts as a trustee or protector of a trust and is already licensed under the Banks and Trust Companies Act of the BVI. In broad outline, if you or your clients are responsible for a company which acts as trustee or protector of a trust but does not hold a licence under the Banks and Trust Companies Act, it will be necessary for you to take steps to ensure that the company complies with subsidiary legislation known as the Financial Services (Exemptions) Regulations, 2007, by 31st July 2008. In most cases these steps will include amending the company's memorandum and articles and paying increased annual fees, so as to ensure that the company falls within the requirements for a "private trust company" set out in the Regulations and thereby continues to avoid the need to obtain a licence under the Banks and Trust Companies Act. There may however be a few instances where clients will find it preferable to obtain a licence. You may view a general guide to the Regulations which provides additional information here. If you believe that you or your clients have a company which may be affected by the changes mentioned above, please contact us as soon as possible either by clicking on the link at the end of this notice, or through your usual contact person at Harneys Corporate Services. We will then let you have further information. HARNEYS CORPORATE SERVICES LIMITED 14 March 2008 hcsl@harneys.com