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The Financial Services Commission (FSC) of the British Virgin Islands (BVI) is the official regulator for financial services conducted in or from within the BVI, including the licensing of forex and CFD brokers. While it provides a legal structure for registration and enforces some corporate governance standards, the FSC is considered a Tier-3 offshore regulator, primarily due to its light supervisory approach, absence of core retail protections, and limited enforcement visibility.

To operate legally under the BVI FSC, brokers must obtain an Investment Business Licence under the Securities and Investment Business Act (SIBA). Basic requirements include:

• Incorporation in the BVI
• Appointment of local directors and a compliance officer
• Minimum capital requirements (typically around $100,000 USD)
• Submission of AML/KYC and operational documentation

However, the BVI FSC does not impose leverage limits, does not restrict deposit bonuses, and does not mandate client fund segregation with strict controls. There is also no retail investor compensation fund, and no structured dispute resolution system for retail clients.

Although the FSC maintains a public registry of licensees and occasionally issues public warnings, it does not actively monitor brokers’ conduct or ensure compliance with risk disclosures and execution standards. As a result, many offshore brokers use the FSC registration to operate globally without facing the strict rules imposed by regulators such as the FCA or ASIC.

While some BVI FSC-regulated brokers operate transparently and are part of larger, well-regulated groups, retail traders should exercise caution and confirm that any BVI-registered broker also holds a Tier-1 licence for client protection and recourse.