The Vanuatu Financial Services Commission (VFSC) was formally established in December 1993, following the passage of the Vanuatu Financial Services Commission Act 1993 (No. 35 of 1993) by the Vanuatu Parliament.
Before it was established as a standalone commission, the VFSC functioned as the Registrar of Companies and the Official Receivership Department of the Treasury from 1971 under the previous British Administration. When Vanuatu became an independent nation in July 1980, the functions reverted to the Ministry of Finance and Economic Management.
Over time, the VFSC transitioned into a regulatory body structured into four divisions: Corporate Services, Legal Enforcement & Insolvency, Supervision, and Registration.All divisions collaborate to meet the growing responsibilities of the Commission in a rapidly evolving financial sector.
Core Mandate and Functions
The primary role of the VFSC is to have an efficient and effective registry and to regulate and supervise the non-deposit-taking financial services sector. The VFSC must promote Vanuatu's financial industries internationally and shield Vanuatu's reputation against undesirable, noncompliant, or high-risk business operators.
To accomplish this overall, the Commission pursues the main objective in alignment with:
• Regulating financial services consistent with local legislation and International obligations and standards.
• Supervising regulated entities to uphold compliance.
• Promoting Vanuatu as an attractive and reputable place for doing business in the financial sector.
• Ensuring the maintenance of legislative frameworks for best practice and innovation in the sector.
Strategic Direction and Vision
The VFSC aims for the financial centre of Vanuatu to be recognised internationally for its robust regulatory standards and attractive business jurisdiction. The Commission's short to medium-term strategy will highlight several outcomes, namely:
• Building a globally respected financial hub
• Aligning Vanuatu's regulatory frameworks with accepted international best practice
• Facilitating modern financing arrangements using appropriate legislative arrangements
• Openness and productive collaboration between the Commission and the financial sector
• Contributing to government income through equitable and efficient fee collection.
Corporate Objectives
To achieve the strategic goals set out by the Commission, the VFSC will focus attention on the agreed core organizational priorities:
• Teamwork and collaboration – promoting a culture that acknowledges the responsibility of each role and the value of improving collective outcomes.
• Customer service excellence – finding a balance between meeting client needs and fair, transparent regulation.
• Staffing development – where appropriate, grow capable and skilled employees.In particular, invest in staff training and ensure that each department has adequate resources.
• Legislative improvement – continuing to improve the legislative framework of regulations, ensuring agencies work quickly, comprehensively, and modern together with effective industry oversight.
• Technology advance – continuing build up or online operations to improve access for all clients and services.
• Industry compliance – explore new measures to develop high levels of compliance.
• International promotion - keep strengthening Vanuatu's reputation as an acceptable, reliable jurisdiction for financial services.
Commitment to Development
The VFSC appreciates the unique and considerable advantages a growing and well-regulated financial services sector can bring to Vanuatu's economy. The Commission, through strategic direction, clear objectives, and a commitment to recognized regulatory excellence, is dedicated to fostering a financial environment conducive to local economic growth, supported by trusted international participation.
Vanuatu
