By Nick Careless
October 2009
With continuing gloom in the UK economy and winter now approaching, I was recently speaking to an expat business contact in the BVI and was prompted to spare a thought for those private client practitioners working in the sunnier climes of the Caribbean. ’I’m sitting here enjoying a happy hour smoothie at my local beach bar after a good day’s work earning a handsome tax-free salary in a job I love and I’m wondering, where did it all go wrong?’ she laughed. ’Life is good.’
The British Virgin Islands is one of a number of attractive alternative financial centres for today’s qualified professional interested in gaining international experience. As a United Kingdom overseas territory with a reputation as the world’s leading offshore corporate domicile, in addition to a growing reputation for product innovations including trust, insurance and funds, the islands have a politically stable environment and a business-friendly regime with legislation developed in close consultation with the private sector.
Some of the territory’s other key benefits include: a clear and practical legal framework based on the English legal system, with a final right of appeal to the Privy Council in the UK; strict confidentiality practices; no wealth, capital gains or estate taxes and the protection of wealth benefits, inheritance wishes and trust interests; asset security; no taxes on IBCs and a low-tax rate for domestic companies; the codification of banking, mutual fund, insurance, trust and company laws; the absence of exchange controls; and its cost-effectiveness as a place to do business.
In our world, where reputation and compliance are increasingly relevant, it is worth noting that the BVI appears on no black lists and is well viewed by organisations such as the OECD and FATF. The BVI has an excellent record for due diligence in its practices and is the only British overseas territory to which the UK has devolved full responsibility for its own financial sector – a clear testament to the confidence in the BVI.
Dawn Smith, former BVI Government representative to the UK and now a lawyer at Conyers Dill & Pearman, enthuses: ’The British Virgin Islands offers challenging, high-calibre work coupled with a superb quality of life, particularly if you like to spend time out of doors.’
So the BVI is a premier international business centre, home to a number of highly regarded trust and fiduciary companies, banks, international law firms and accountancy practices. Who works there and how does one effect a move there?
In a territory with a need to remain globally competitive as a business centre, yet one with finite human resources, it is clear that a balance must be found between welcoming expatriate workers and protecting the privileges afforded to BVI citizens, or ’belongers’, as they are known. Working in the BVI is subject to restrictions to prevent the island becoming overcrowded, and immigration is strictly controlled. Qualified and experienced professionals with skills in relevant disciplines, i.e. legal, accountancy, funds, private client and corporate administration, are in demand globally, and the BVI is no exception. Competition is stiff and the selection procedure for immigration is stringent. In order to work in the BVI, a work permit is required, except for belongers, naturalized citizens and holders of a certificate of residency. Work permits are issued only when there is no suitable local applicant for the job, and employers need to demonstrate that they have taken all necessary measures to fill the position locally prior to looking elsewhere. In a territory with a need to remain globally competitive as a business centre, yet one with finite human resources, a balance must be struck between welcoming outsiders and protecting the privileges afforded to BVI citizens. The BVI’s Labour Code Lawis under constant review, with plans to streamline immigration procedures, entry and work permits.
Other important legislative revisions in the BVI, such as
the Insolvency Act, 2003 and the Virgin Islands Special Trusts Act of 2003 (VISTA) in conjunction with the changes made in the Trustee (Amendment) Act, 2003, make the BVI one of the most competitive jurisdictions for commercial transactions as well as traditional private family trusts.
Chairman of the BVI branch of STEP Hélène Anne Lewis says: ’The BVI presents a unique opportunity for lawyers and other trust professionals to work with a corps of colleagues who are best in class, in a financial centre which remains ahead of the curve not only in its compliance culture, but in its offering of financial services products and in an environment that is at least as beautiful as the most idyllic vacation destination on your bucket list’.
For further information on living and working in the BVI email nick.careless@ap-executive.com
Nick Careless is managing director of AP Executive, a specialist global private wealth management recruitment consultancy.
First published in Private Client Practitioner magazine - October 2009