Changes in BVI Regulations and Court System Attractive to Global Businesses

TORTOLA, British Virgin Islands, March 19 /PRNewswire/ -- On the heels of big changes from the Virgin Islands Special Trusts Act 2003 and the BVI Business Companies Act 2004, the British Virgin Islands continues to enhance the business environment for financial institutions and corporations. Walkers, the leading global offshore law firm, reports that new legislation that is on the horizon, specifically private trust company legislation and the Legal Profession Bill, along with the development of the Caribbean's first Commercial Court and the appointment of a Managing Judge for the Eastern Caribbean Supreme Court, will all contribute to the BVI's position as a leading offshore financial centre.

The substantive private trust company legislation came into force on 15 January 2007 and the enactment of subsidiary regulations specifying which companies will be exempt is imminent. Under the newly enacted legislation, certain private trust companies may be exempted from licensing requirements and other provisions of the Banks and Trust Companies Act, under procedures implemented by the Financial Services Commission. Unremunerated BVI private trust companies which do not offer their services to the general public will be able to apply for these exemptions, according to the Commission.

"These regulatory changes will enhance the BVI's attractiveness as a jurisdiction for the incorporation and use of private trust companies," Christopher McKenzie, Partner and head of Walkers' private client department in the BVI, said. "These developments are extremely positive news for estate planners and will promote more structures that use both a trust governed by BVI law and a BVI private trust company as trustee by striking the right balance between the level of regulation versus the level of exemption."

Private trust companies enable family-controlled structures to be established, offer trustees the benefits of limited liability and perpetual existence which are usually the features of corporate vehicles, and can lessen the tax burden by moving the liability from the settlor to the trust company. These vehicles have become increasingly popular in offshore financial centres in the last 15 years.

"Walkers is particularly well-positioned to advise private trust companies on these changes, since partners Chris McKenzie and Jack Husbands were leading members of the committee of the Society of Trust and Estate Practitioners (STEP) which proposed the reforms," Heidi de Vries, managing partner of Walkers' BVI office, said. "Chris has been advising on trust regulations locally for more than 10 years, and associate Lisa E. Penn-Lettsome served as Deputy Managing Director of the BVI Financial Services Commission when these reforms were originally considered."

Another important step that the BVI Government is taking is the development of the first Commercial Court in the Caribbean, as part of the Eastern Caribbean Supreme Court, which celebrated its 40th anniversary last month. Mr. Justice Gordon of the Court of Appeal, who is helping to co- ordinate the creation of the Commercial Court, met with heads of the litigation departments of the BVI law firms, including Walkers, last month to outline the court's plans.

"The appointment of a dedicated judge of the Commercial Division of the High Court, coupled with the recent appointment of a Managing Judge for the Eastern Caribbean Supreme Court, illustrates the court's commitment to increased efficiency," said Jack Husbands, the head of Walkers' BVI litigation department. "These enhancements will, in turn, help attract business and legal matters to the BVI."

The BVI Government has also introduced the Legal Profession Bill, which makes provision for the fusion of the barrister and solicitor branches of the legal profession and which promotes legal education and the discipline of legal practitioners. This Bill models legislation that onshore jurisdictions have used to regulate their legal professions, and is yet another example of the BVI's focus on providing unparalleled legal services.

Walkers has already seen the impact of these changes through an increase in major institutional work for the BVI office, including sophisticated, high- value corporate transactions and complex international litigation cases. As a result of a significant increase in litigation work, the firm has recently added three members to its BVI litigation department: Annabel Gilham, an English solicitor who previously practiced at Herbert Smith in London; Oliver Clifton, an English barrister; and Jerry Samuel, who originally qualified as an English barrister and trained with Walkers BVI office. Walkers now has one of the largest teams of specialist BVI litigation lawyers and has grown to become the second-largest law firm in the BVI.

"We anticipate that the changes to the BVI court system and the introduction of private trust company legislation will fuel the rise in the number of legal matters with global impact that we see," Ms. de Vries added. "Through Walkers' network of offices worldwide, our BVI clients can also benefit from a broad view of regulations and legal systems in others offshore centres to decide what is the best solution for them."

About The Walkers Group

From offices in the Cayman Islands, the British Virgin Islands, Dubai, Hong Kong, Jersey, London and Tokyo, the Walkers group provides legal and management services to leading FORTUNE 100 and FTSE 100 global corporations and financial institutions, capital markets participants, investment fund managers, and growth and middle-market companies.

The Walkers group is comprised of leading offshore law firm, Walkers; fund services provider, Walkers Fund Services Limited; and SPV and corporate services providers, Walkers SPV Limited, Walkers (Jersey) Limited, and Walkers (BVI) Limited.

In 2006, Walkers was named as the Who's Who Legal Law Firm of the Year: Cayman Islands, the PLC Which Lawyer? Yearbook Leading Cayman Islands Law Firm, The Lawyer's Offshore Law Firm of the Year, and was one of two firms honored as "Offshore Legal Team of the Year" by STEP.

For more information on Walkers or Walkers (BVI) Limited, contact our BVI office by phone at 284-494-2204, by e-mail at info@walkersbvi.com or on the Web at http://www.walkersglobal.com/.