British Virgin Islands - "Nature's Little Secret" is also "Finance's Big Noise!"

"Nature's little Secret" is the slogan used by the Tourist Board of the British Virgin Islands. In tourism terms, that may remain true, with the delights of over 60 beautiful islands remaining as attractive as ever, particularly for sailing holidays. For the financial services industry, however, BVI is no secret, nor is it little. Instead, the jurisdiction has developed in recent years into one of the world's prime locations for financial services, and this growth is set to continue.

The BVI's financial strategy has been to diversify from its historical
role as a domicile for International Business Companies (IBCs) and into
trusts, captive insurance, and funds. It has achieved this objective
with great success, but the body responsible for marketing and
developing the financial services industry in BVI, the International
Finance Centre (IFC), is under no illusions as to the long term nature
of the task.

"We have made great strides in the past decade in providing an
environment which the international financial industry wants to invest
in and co-operate with," says Lorna Smith, Executive Director of the
IFC. "But we realise that, in an increasingly global industry, we
cannot rest on our laurels. We must strive to achieve continuous
improvement in the environment in BVI for the industry - only then will
we confirm and consolidate our pre-eminent status. The trusts industry
is one of the most important to us: a branch of the Society of Trusts
and Estates Professionals was formed here in 1997, and the government
and regulator are united in their wish to make BVI the jurisdiction of
choice for the industry."

The jurisdiction has regulated trust and company service providers since
1990, whereas others, such as the Channel Islands and Isle of Man, only
started doing so in the last couple of years. The Banks and Trust
Companies Act was passed in 1990, and the first Trustee (Amendment) Act followed in 1993. BVI also expects that three pieces of legislation
passed in 2003 will increase its attractiveness as a jurisdiction for
trusts. These are the Virgin Islands Special Trusts, Trustee (Amendment) and Property (Miscellaneous Provisions) Acts.

Christopher McKenzie, of BVI law firm Harney, Westwood and Riegels, says the Act will enable Virgin Island Special Trusts (to be known as VISTA Trusts) to hold shares of an IBC, and allow trustees to be absolved by settlors from the usual management responsibility under English law.This enables shares in companies to be passed from one generation of a family to the next.

"We are seeing great interest in this development from practitioners in
BVI and from around the world," adds Lorna Smith. "VISTA Trusts are set to become our "new IBC", in that this is a piece of legislation that
will position BVI front of mind for investors globally."

Add to this the burgeoning funds industry in BVI, with both mutual funds
and hedge funds having seen an explosion in growth in recent years,
along with BVI's status as a world centre for Captive Insurance, and it
is clear that BVI has developed into a world class centre for wealth
management and asset protection.

The last word is with Lorna Smith of the International Finance Centre:
"BVI is today the preferred location for financial services. Our mission
is to maintain and improve that status. We will do so through continued
best-of-breed regulation and the ongoing partnership between public and
private sector."