Domestic Non-Bank Sector
A Friendly Society is an entity established for the purpose of:
(i) providing for money to be paid on the death of a member for funeral expenses in whole or in part, by voluntary subscription of members; and
(ii) encouraging savings and thrift among members; and
(a) “Funeral Expenses” shall be deemed to include all reasonable incidental and ancillary expenses which may be incurred in connection with the death of a member.
An application to register a Friendly Society in the form prescribed by the Authority and signed by a majority of the Board members shall be made to the Authority
Fees payable to the FSA
(a) There shall be a non-refundable registration fee of EC$250.00 payable upon registration.
(b) An annual renewal fee of EC$500.00 is payable by December 31st of each calendar year.
(c) A fee of EC$50.00 is payable for any filing by a Friendly Society with the Authority.
There are fifteen (15) registered friendly societies operating in St. Vincent and the Grenadines.
The legislation governing the Money Service Business activities is the Money Services Business Act Chapter 260 of the Revised Laws of St. Vincent & the Grenadines, 2009.
No person shall carry on money services business in Saint Vincent and the Grenadines without first obtaining a license under Section 5 of the Money Services Business Act No. 27 of 2005.
Pursuant to Section 2 of the Act, “Money Services Business” means-
(a) The business of providing any or all of the following services-
(i) transmission of money or monetary value in any form;
(ii) cheque cashing;
(iii) currency exchange;
(iv) the issuance, sale or redemption of money orders or traveler’s cheques; and
(v) any other services the Minister may specify by notice published in the Gazette; or
(b) The business of operating as an agent or franchise holder of a business mentioned in paragraph (a).
A person who wishes to carry on money services business within St. Vincent & the Grenadines must apply for a license. An application must-
(a) be made in writing to the Authority i.e. Financial Services Authority;
(b) contain the information and particulars set out in Schedule 1;
(c) be accompanied by a certified statement showing that the applicant has a net worth of one hundred thousand dollars ($100,000) and;
(d) be accompanied by a non-refundable application fee prescribed in Schedule 3.
(e) No license may be granted to an applicant unless the applicant makes a statutory deposit of one hundred thousand dollars ($100,000) in cash, government securities or any other form approved by the Minister.
Fees Payable to the FSA:
- Application fee $3,000.00
- Annual fee $10,000.00
A license to carry on money services business is valid from the date of first issue until the 31st December of that year and may be renewed by the Authority on payment of the annual fee on or before the 15th day of January of the following year.
The insurance industry continues to be a significant component of the non-bank financial sector in St. Vincent and the Grenadines comprising insurance companies and intermediaries and pension fund plans. Companies conducting business are either indigenous or domestically incorporated companies or incorporated in CARICOM countries and operating through local agencies or branches.
The Registration requirements for insurance companies are enshrined in the Insurance Act, Chapter 306 of the Laws of St. Vincent & the Grenadines, Revised Edition 2009. To facilitate the timely processing of insurance applications, the following guidance is provided together with a list of documents and information required by the Financial Services Authority (“the Authority”). This is not an exhaustive list and the Authority has the right to seek additional information to enable the proper assessment of an application.
Minimum paid-up Capital:
(a) Minimum paid –up share capital requirements for long term insurance business
Local company – not less than $2M
Foreign company – not less $5M to be fully paid up in cash
Mutual company – uncommitted reserves of at least $5M.
(b) Minimum paid up capital for any class of insurance business other than long term insurance business:
Local company – not less than $1 M
Foreign company – not less than $2.5M to be fully paid –up in cash
Mutual company – uncommitted reserves of at least $2.5M
The Authority may require a share capital above the stated minimum.
(a) The following Minimum Deposit must be deposited with the Authority before registration;
Long-term insurance business- $500,000.00.
Motor vehicle insurance business – $500,000.00 or an amount equal to 30% of the gross premium income in respect of motor vehicle insurance business transacted in the State during the financial year last preceding the date of deposit, whichever is the greater.
Insurance business other than long-term insurance or motor vehicle insurance business – $200,000.00 or an amount equal to thirty per cent of its gross premium income with respect to its insurance business other than long-term insurance or motor vehicle insurance business transacted in the State during the financial year last preceding the date of deposit, whichever is the greater.
Please note that, a deposit shall be in the form of cash or prescribed securities or partly in one and partly in the other.
Application & Accompanying Documents
Prior to the making of an application the “conditions for registration” as set out under Section 14 of the Insurance Act, must be satisfied.
- An Application for Registration must be made to the Authority;
- A non-refundable application fee of $1500.00 must accompany the application.
- The names and addresses of one or more persons resident in the State and authorized to accept on behalf of the company service of process in legal proceedings; [Section 9 (1) (b) (ii)];
- A copy of the instrument establishing the company or any other rules of the company incorporation;
- In the case of a foreign company, a Certificate of Registration from the jurisdiction of origin;
- A copy of the Memorandum and Articles of Association or other rules of the Company;
- A copy of the list of shareholders of the company, indicating those who are citizens of Saint Vincent and the Grenadines, and the shareholding of each person;
- Personal Questionnaire Form and recent Police Record for all directors and managers (All officers and shareholders must complete this questionnaire);
- A copy of the latest revenue account and balance sheet;
- A letter from the supervisory authority in the country of incorporation;
- Statement of actuarial basis and certificate of the Actuary;
- A copy of the latest valuation report on the financial position of the company;
- Details of reinsurance arrangements;
- A statement of the rates of commissions;
- A statement of projections of revenue and expenditure, forecast balance sheet and other estimates;
- Specimens of the standard forms of proposal and policy to be used and issued in Saint Vincent;
- In the case of a company applying to carry on long term business, the premium rate book;
- The tariffs to be applied in respect of property (especially fire and allied perils) insurance and motor vehicle insurance business; and
- Any other information requested by the Authority.
Registration and Licence Fees (XCD)
- Application Fee for Registration for Insurers $1,500
- Annual Registration Fees
– Insurance Broker $1,000
– Insurance Adjuster $750
– Insurance Agent $750
– Sales Representative $100
- Annual Licence Fees
- Local Insurer
– Long term insurance business $5,000
– General insurance business $5,000
- Foreign Insurer
– Long term insurance business $5,000
– General insurance business $5,000
- Pension Plan
(a) Registration of a pension fund plan $1,000
(b) Registration of an amendment/change of a pension fund plan $100
- Fees for reinstatement of registration
– Insurance Agent $1,500
– Insurance Broker $1,500
– Insurance Adjuster $1,500
– Sales Representative $1,500
- Fees for inspection of documents $50