Turks and Caicos Islands
Answer ... The principal statute governing restructurings, reorganisations and voluntary liquidation proceedings is the Companies Ordinance 2017 and the accompanying Companies Regulations. Insolvency proceedings are described in:
- the Insolvency Ordinance 2017 and the accompanying Insolvency Rules 2019;
- the Insolvency Practitioners Regulations 2019;
- the Insolvency Practitioners Code 2019; and
- the Insolvency (Transitional Provisions) Regulations 2019.
The Turks and Caicos Islands (TCI) insolvency regime is largely based on equivalent and successful insolvency legislation of the British Virgin Islands.
The insolvency regime also provides for a compulsory licensing regime for insolvency practitioners. The Financial Services Commission (FSC) has approved licensing of insolvency practitioners based and practising in the TCI, and the authors anticipate more licences being issued in the near future.
Although there are no statutory restructuring and insolvency regimes which are applicable to a specific type of entity or business, an entity operating in the TCI financial services industry – and thus a ‘regulated person’ or ‘licensee’ such as an insurer – is closely supervised and regulated by the FSC.
The prior written consent of the FSC is required for a regulated person/licensee to be placed into voluntary liquidation or to enter into a company arrangement. In an insolvent liquidation, the FSC must be notified by the members of a regulated person/licensee prior to the appointment of a liquidator. Further, the FSC may apply to court for the grant of an administration order or for a liquidator to be appointed under the Insolvency Ordinance.
The FSC also has wide-ranging powers in relation to the appointment and removal from office of an insolvency practitioner.