Regulatory function for credit
unions and insurance moves to the
Reserve Bank of Vanuatu
On 20 November 2008, the
Vanuatu Financial
Services Commission [VFSC]
received instructions
from the Vanuatu
Government through the
Honourable Minister of
Finance and Economic
Management, Sela Molisa
to make the necessary
arrangements to afford a
transfer of its
regulatory functions for
credit unions and
insurance to the Reserve
Bank of Vanuatu [RBV].
Before such a move can
be effected however, a
few important matters
have to be resolved
including:
a.
Changes to the various
pieces of legislation;
b.
Acceptance by the RBV to
maintain Mr. Bill
McCullough as an Advisor
for the
Insurance Team;
c.
Acceptance by the RBV to
provide for in its 2009
budget sufficient
provisions to maintain
the Insurance Team; and
d.
Acceptance by the RBV to
fund marketing of
insurance products
through the Captive
Insurance Association of
Vanuatu.
All stakeholders have
been advised of the
decision and talks on
logistics are being
between the VFCS and RBV.
It is expected that the
move can be completed by
June 2009.
2008:December
Vanuatu went the polls on 6 September to elect its 52 members of
Parliament
“Vanuatu went the polls on 6
September 2008 to elect its
52 members of Parliament. No
single party won a majority
to form government. The
current coalition government
comprises the three big
parties; the Vanuaaku Pati
(VP), National United Party
(NUP) and the Union of
Moderate Parties (UMP) and a
few Independent Members. The
Minister with responsibility
over the Vanuatu Financial
Service Commission is the
Minister of Finance and
Economic Management. This
time it the Honourable Sela
Molisa, a career politician
who has previously served as
Finance Minister on a number
of occasions.”
2008:Sept
VFSC appoints Expert to provide
advice on Insurance and related
maters
The Vanuatu Financial
Services Commission (VFSC)
is pleased to announce the
appointment of
Mr. William McCullough
as the Commission’s new
Advisor on Insurance matters
effective 15 July 2008 for a
period of 2 years. Mr.
McCullough brings to the
VFSC over 30 years
international experience in
the insurance industry,
regulation and supervision.
George Andrews,
Commissioner of the VFSC
commented: “We are delighted
to welcome Mr. McCullough to
the Commission and we look
forward to the VFSC reaping
the benefits of his wide
ranging experience, skills
and energy as we together
work to ensure that the VFSC
fulfills its statutory
obligations and meets the
challenges that lie ahead.”
The
Honourable
Minister of
Finance and
Economic
Management,
Willie Jimmy
Tapangararua
convened a
meeting on 6
June 2008 at
the Reserve
Bank of
Vanuatu
offices to
discuss the
future of
the Vanuatu
Offshore
Finance
Centre. The
Meeting
brought
together
representatives
from the
government,
regulators
and
industry.
In his
opening
address, the
Minister of
Finance
sought
outcomes on
key issues
including:
a
The
role
of
government;
b
Legislative
framework
of
the
Finance
Centre
and
Regulatory
requirements;
The Commissioner of
the Vanuatu
Financial Services
Commission, Mr.
George Andrews
presented an
analysis of the
current situation in
the Financial Centre
along with options
for a way forward.
A
paper
on economic
situation
and
prospects in
Vanuatu was
presented by
the Governor
of the
Reserve Bank
of Vanuatu,
Mr. Odo Tevi.
A
paper
on how to
best market
the Vanuatu
Finance
Centre was
presented by
the Chairman
of the
Finance
Centre of
Vanuatu, Mr.
Mark
Stafford.
The outcomes of the
Meeting would be
presented to Cabinet
for endorsement and
form the basis for
future direction of
the Vanuatu Finance
Centre.
2008:June
Personal Property Security
Act (PPSA)
Vanuatu
enacted a
PPSA in
March 2008.
Work on
completing
the
Regulations
and the
establishment
of a filing
office for
security
interests to
be
established
within the
VFSC is well
under way.
The new
framework
will be
instrumental
for
enhancing
access to
finance in
Vanuatu.”
The
Commissioner,
George
Andrews
recently
made a power
point
presentation
covering the
PPSA and its
benefits to
the Business
Forum held
at the
University
of the South
Pacific
Emalus
Campus in
Port Vila on
12 June
2008. The
Forum in its
fifth year
is organized
by the
Chamber of
Commerce and
Industry.
Stakeholders
in
attendance
included
representatives
from
government,
regulators,
industry,
diplomatic
missions and
international
organizations.
The aim of
the exercise
is to
provide
policy
advice to
government
in private
sector
development.
Amendments to the
Registration UK
Patents and
Trademarks now means
the VFSC will be
able to register
Patents and
Trademarks from all
member states of the
European Union
2008:January
E-Business
The Vanuatu
Parliament
passed an
amendment to
the
E-Business
Act during
its second
ordinary
session
(November
and
December) of
2007.
The
amendments
to the Act
makes the
‘cybersuite’
an
attractive
and
cost-effective
means by
which
persons
engaged in
e-commerce
can conduct
their
business
operations
through a
legal entity
- without
the need to
meet
relatively
high
establishment
and on-going
maintenance
costs.
The
amendments
place
Vanuatu as a
unique
jurisdiction
in which to
engage in
e-commerce.
The key
amendments
relate to:
a
The broad
parameters
under which
electronic
business,
associated
with
Vanuatu, can
be
conducted.
It
stipulates
that the
good
reputation
of Vanuatu
must be
maintained
and the
principles
set out in
the Code of
Conduct be
observed by
all
stakeholders.
b
It further
establishes
that the
cybersuite,
having its
own legal
entity, is
the
contracting
party for
the purpose
of engaging
in
electronic
business.
The
requirement
of the
International
Companies
Act that a
company
remains
solvent at
all times is
now
reflected
which
imposes a
similar
requirement
on a
cybersuite.
c
The
requirement
that each
company,
engaged in
e-business,
must
maintain
adequate
financial
records in
relation to
its own
electronic
business
activities
and
adequately
separate
records for
each
cybersuite
it manages.
The
reference to
accounting
principles
has been
amended to
‘generally
accepted
accounting
principles
for a
company’ and
therefore
imposes the
same
standard as
applies
under the
International
Companies
Act.
d
The
importance
of
compliance
by
cybersuites
and
requires,
subject to a
code of
conduct
having been
adopted, a
copy of the
Code being
provided to
any
prospective
cybersuite
proprietor.
It further
provides
that, in the
event of any
cybersuite
contract
being
contrary to
the Act or
the Code,
the
contravening
provisions
are to be
severed.
e
It provides
for the
imposition
of a
Cybersuite
Registration
Fee and an
Annual
Cybersuite
Fee for a
cybersuite,
being
payable to
the Vanuatu
Financial
Services
Commission
upon the
establishment
of a
cybersuite
and,
thereafter,
on or prior
to each
anniversary
date of the
initial
registration
of the
cybersuite.
The level of
such fees
has been
tied to the
then current
fees payable
in respect
of an
International
Company. To
encourage
the
registration
of
cybersuites
in Vanuatu,
the level of
fees has
been set at
not-more-than
one-half of
the fees
payable for
an
International
Company
f
It enables a
process to
appoint and
licence an
e-services
provider,
possessing
the
necessary
expertise
and skills,
to undertake
an
e-currency
business.
The
appointment
of an
e-services
provider
would be
subject to a
process of
tendering
whereby a
licence fee
would be
payable to
the
Government
of Vanuatu.
The tender
process
would entail
a close
examination
of the
financial
credentials
and
management
attributes
of the
tenderers.”
