US VIRGIN ISLANDS LAW AND PRACTICE Contributed by: Marjorie Roberts, Sean Foster, Renée Marie André, Lisa Wisehart, David Bornn, Duncan J. J. Kessler and Jessica McKenney, Marjorie Rawls Roberts PC
to ensure compliance with the program. Likewise, RTPark exercises review of entities established under it to ensure program compliance. If the investment fund were engaged in banking, secu - rities trading or insurance, it may be subject to over - sight by the USVI Banking, Insurance, and Financial Regulation Division. Lastly, the USVI Bureau of Inter - nal Revenue (“BIR”) may subject investment funds to regulatory review for the purpose of tax enforcement. 6. Antitrust/Competition 6.1 Applicable Regulator and Process Overview The USVI added the Virgin Islands Antimonopoly Law (11 V.I.C. §§ 1501-1518) in 1973. The law lists several ways violations can occur, including by attempting to or acquiring monopoly power in any substantial part of trade or commerce in the USVI to exclude competi - tion or to maintain, control or fix prices in that trade or commerce. The law also addresses exceptions, prosecutions, civil actions, service, investigations, etc. The law specifically states that an action is not barred because the complaints of conduct or activities affect or involve interstate or foreign commerce in any way. Additionally, the law states that where its language is similar or identical to the Federal Antitrust law, the USVI District Court shall follow the construction given to the federal law by federal courts in construing the Virgin Islands Antimonopoly law. 6.2 Criteria for Antitrust/Competition Review Examples of other violations listed in Title 11 Section 1503 of the Virgin Islands Antimonopoly Law include: • conspiring or contracting with would-be competi - tors to control or fix prices or service charges, or controlling commodities or services for the same reason; • conspiring or contracting with would-be competi - tors to control or allocate or divide customers, sup - plies, etc, for a commodity or service; and • conspiring or contracting with other persons to unreasonably restrain commerce or trade.
Exceptions to the Virgin Islands Antimonopoly law are listed in Title 11 Section 1505 and include, for example: • formal agreements of small entrepreneurs of similar commodities for buying those commodities to meet, in good faith, competition of businesses that have substantially higher sales volumes – a small entrepreneur in this instance means not reasonably expected to have gross receipts over USD250,000 in any year and who will not employ more than 12 persons; and • activities of a securities dealer or a member of the National Association of Securities Dealers or any National Securities Exchange registered with the SEC under the Securities Exchange Act of 1934 in the course of their trading in or underwriting securi - ties as a principal, broker or agent. Certain exceptions for labour organizations, coopera - tive organizations, public utilities, nonprofits, state or national banks and territorial or federal savings and loan associations. 6.3 Remedies and Commitments Under title 11 section 1507 of the V.I. Code, the Attor - ney General of the USVI can commence civil pro - ceedings in the District Court of the Virgin Islands to restrain or prevent violations of the Virgin Islands Anti - monopoly Law. The District Court judge determines if there is a violation of the law, and if so, the judge will use all necessary equitable powers to enter a decree or judgment to remove the effects of the violation and to prevent the violation from continuing or occurring again in the future. Examples of powers the judge may exercise include: • injunction; • divestiture of property; • divorcement of business units; and • domestic associations or corporations dissolution; and • termination or suspension of foreign associations’ or corporations’ right to do business in the USVI. 6.4 Antitrust/Competition Enforcement The Attorney General of the USVI may investigate and commence criminal prosecutions under Title 11 Sec -
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