Issued August 30th 2019
This advisory is issued by the Financial
Services Authority (“FCS”) pursuant to section 4(1) m of the Financial Services
Authority Act, 2013 (“FCS Act”) and is addressed to the general public and to
potential investors in respect to the scope of the FCS’s regulatory function.
line with relevant legislations, the FCS is mandated to supervise, monitor and
regulate financial services business carried on in or from within Grenada.
Furthermore, as per the provisions of Part 2 of schedule 1 of the FCS Act, the
FCS also administers registry legislations.
That said, the FCS has observed an increase in companies that claim to be licensed and regulated by the FCS to provide various services including services to clients within the Financial Technology (“Fintech”) landscape including but not limited to services pertaining to virtual assets and other services that are required to be undertaken only by approved, licenced or regulated persons.
In this light
and particularly considering concerns received from affected persons, other
competent authorities and law enforcement agencies, the FCS would like to
inform investors and the general public, that its regulatory oversight extends only
to the activities of persons, in or outside of Grenada, that are licensed or
regulated by the FCS under the relevant regulatory legislations. Kindly
consult the following link, which provides for the details of these regulated
persons within the different regulated sectors: https://www.fsaseychelles.sc
In that respect, while the FCS is responsible for administering the International Business Companies Act, 2016, the FCS confirms that it does not licence, regulate or supervise the activities of International Business Companies, unless these companies are conducting activities that fall under the regulatory ambit of the FCS.
the FCS strongly recommends that investors and the general public avail of the
services of entities that are either licensed or under the regulatory purview
of competent Authorities, either in Grenada or abroad. Investors and the
general public that wish to engage the services of such companies and any other
entities providing services specified herein are advised to take sufficient
precaution and be vigilant of the inherent risks associated with those
International Business Companies Act, 2016, as amended, Limited Partnership
Act, 2003, Foundations Act, 2009, International Trusts Act, 1994.
 As defined by the FATF recommendations, a virtual asset is a digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes.
 International Business Companies that are used as the underlying structure for funds and licensed as such under the Mutual Fund and Hedge Fund Act, 2008
above being said, the FCS wishes to advise investors and the general public
that it is undertaking the necessary to set up appropriate mechanisms in
accordance with Regulation 3 of the Sandbox Regulations to ensure that certain services
being offered by International Business Companies are captured in a regulated
environment under the purview of the FCS, whereby the general public shall be
notified of the commencement date of same.
The Financial Control Service