BVI seeks to attract new business
Thursday February 03 2011 | 02:43 AM

The year 2011 will see the British Virgin Islands continue its work to promote the jurisdiction on the global stage and increase its own future business as the world moves tentatively towards recovery, according to Sherri Ortiz, Executive Director of the Territory’s International Finance Centre (IFC).

Ortiz explained there are ‘excellent prospects for increased business development’ in the year ahead, but given the changes throughout the global financial landscape, the BVI is ‘working to position ourselves sufficiently to address these challenges in the way that is needed’.

Ortiz spoke at last week’s BVI Business Outlook conference held at Scrub Island Resort, which addressed ways in which the BVI could rise to the challenge of a more competitive and diversified economy.

According to Ortiz, the BVI is right in the centre of a bright future for financial services and stressed that the obstacles must be overcome in order to reach this future.

She said that in 2010, the Virgin Islands Government passed into law a series of legislative moves to further strengthen and protect the BVI’s robust reputation, including the Finance and Money Services Act, the new Regulatory Code and the Securities and Investment Business Act, which fine tunes the framework for investment funds.

“The Territory is adapting to meet the changing world environment and we are taking important steps to ensure that we remain competitive in the months and years ahead,” she added.

“In response to the demands for greater transparency in tax matters, the BVI has now signed a total of 19 Tax Information Exchange Agreements, comfortably meeting and well exceeding the international benchmark of 12,” she told the conference.

“We are listed on the OECD’s “white list” of compliant jurisdictions since August of 2009 and will be signing our 20th TIEA with India next month in London. It is the Government’s intention to continue these steps to underscore our commitment to the international community, while protecting our reputation as a capable and innovative jurisdiction.”

Ortiz noted that crucially, the VI economy – with its twin pillars of financial services and tourism - has proved to be more stable than many of our competitors. As 2011 begins, therefore, the BVI’s place as a hub to facilitate access to capital and to support the smooth functioning of the global financial system remains intact.

Ms. Ortiz outlined three key themes for the year ahead.

First, the BVI will face increased competition for business.

“All tax neutral jurisdictions are moving from a defensive to an offensive mode, fighting harder to increase their share of the global business,” she said.

“As the world continues to inch its way out of the downturn, the BVI will have to redouble its efforts to stave off greater competition and increase its own future business.”

Second, the BVI IFC will continue to ensure the Territory’s message is heard in key markets. Later this year the BVI will stage conferences in Brazil, Argentina, the US and Europe as the Territory aims to attract the attention of individuals who have renewed opportunities to invest outside their countries.

Third, the BVI can expect the focus of regulators to shift to how new tax standards are actually being implemented. The BVI is due to be reviewed in 2011.

“We will continue to ensure that the BVI retains a unique balance between having a robust regulatory framework and an entrepreneurial financial community,” said Ms. Ortiz.

“The liveliness of our business community and its constant willingness to adapt to new challenges, coupled with the IFC’s determination to spread the word about the BVI as far and as wide as possible, means we are well placed to compete with our rivals.”