Overview
BVI’s Data Protection Act, 2021 (the “Act“) was brought into force in the BVI with immediate effect on 9 July 2021 and introduces, for the first time in the British Virgin Islands, a legislative framework for data protection based on a set of internationally recognised privacy principles.
Here are some highlights from an article published by mondaq.com.
Privacy Notice
A privacy notice enables a fund to comply with the requirement that data subjects (investors) are entitled to be informed of the identity of the data controller and the purposes for which their personal data are processed. This would be inserted in a fund’s subscription agreement, but should also be available as a standalone document to existing investors.
Offering Memorandum
The offering memorandum should be amended to include a brief description of the Act, investor personal data rights, and lawful purposes for processing. If the fund is not actively offering interests, this step may be undertaken at a later date to include provisions related to data protection.
Third-Party Service Providers Handling Personal Data Provided by the Fund
Data processing agreements with third-party service providers (data processors), such as the administrator and investment manager, should be amended to explicitly provide for respective obligations under the Act. Funds should check their administration agreements and investment management agreements to determine whether such agreements contain adequate obligations to comply with the Act or similar measures.
GDPR
The European Union’s General Data Protection Regulation ((EU) 2016/679) (“GDPR”) establishes a regulatory framework for the protection of personal data in European Economic Area (EEA) countries. If the fund or investment manager comply with the GDPR or another adequate national data protection standard such compliance may also suffice for the purposes of the Act, but advice in this regard should be sought.
Every affected fund and investment manager should consider the aforementioned requirements (albeit recognising that so far as internal policies and procedures are concerned, these can be developed over a period of time). The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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