SIA Bill 2011
Who We Regulate

Our Vision

A vibrant, competitive financial services sector that has sound regulatory practices and policies that promote confidence.

Our Purpose

To contribute to the growth and development of a financial services sector that is vibrant and competitive.

The categories of registration and licensing under the various pieces of legislation administered by the Commission include:


Licensees and Registrants under the Securities Industry Act, 2011

Persons (individual or corporate) carrying on securities business in or from The Bahamas, or purporting to do so, must be registered with the Commission in accordance with section 69 of the Securities Industry Act, 2011 (SIA), unless exempt from the requirement. Conditions for exemption are listed in Part IV of the First Schedule of the Securities Industry Regulations, 2012 (SIR). Part 2 of the First Schedule of the SIA lists the following as activities carried on in the course of securities business:

  • Dealing in Securities,
  • Arranging Deals in Securities,
  • Managing Securities, and
  • Advising on Securities.

Any individual who will carry on regulated securities activity must be registered with the Commission, and can only be registered to perform activities for which the firm that employs him or her is licensed by the Commission to undertake. Section 56 of the SIR lists these categories for individual registration as:

  • Trading Representative,
  • Discretionary Management Representative, and
  • Advising Representative.

Further, for all firms registered under the SIA, 2011, the Chief Executive Officer or Managing Officer must be registered with the Commission. The designated Compliance Director of registered firms must also be registered with the Commission as the firm’s Compliance Officer.

Marketplaces and Clearing Facilities are also registered with the Commission in accordance with section 21 of the SIR.

In line with the promulgation of the SIA on 30 December 2011, existing licensees and registrants (firms and individuals) were ‘grandfathered’ into the new licensing structure and were automatically re-aligned to the functional categories authorised by the 2011 Act. This mapping was done in accordance with sections 146 and 151 of the SIR, and was intended to be an interim measure until firms confirmed their desired categories of registration under the new Act. These SIA, 1999 categories and the corresponding interim registration under the SIA, 2011 are detailed in the linked table below:

Re-categorization Process: Mapping of Registrants under the Securities Industry Act, 2011


Existing registrants at the time of the promulgation of the new Act (30 December 2011) who wanted to change the activities for which they would be authorized as a result of the ‘grandfathering’ process had until 31 July 2012 to submit those requests. The Commission has targeted 31 September 2012 to have confirmed to those registrants their licensing categories under the new Act.


Licensees and Registrants under the Investment Funds Act, 2003

Unrestricted Investment Fund Administrator

A company licensed as an Unrestricted Investment Fund Administrator has the authority to license and oversee the operations of an unlimited number of Investment Funds.

Restricted Investment Fund Administrator

A company licensed as a Restricted Investment Fund Administrator can provide Investment Fund Administrator services only to the Investment Funds licensed or registered by the Commission. A restricted licence holder does not have the authority to independently license an investment fund; licensing must be from the Commission.

Professional Fund

This Fund is available solely to accredited investors.

Standard Fund

A Standard Fund can only be licensed by the Commission and is generally for those funds that are not categorised as a Professional, SMART or Recognised Foreign Fund. An example is a retail-type Fund.

Recognised Foreign Fund

This Fund is licensed or registered in a recognised jurisdiction or listed on a recognised foreign exchange as prescribed.

Smart Fund Model

The Specific Mandate Alternative Regulatory Test Fund, or SMART Fund, is a flexible asset management fund product designed to cater to the specific needs of investors. In this category of fund, both the operational and regulatory structure of the fund are specifically designed by industry participants, subject to approval from the Commission.


Licensees under the Financial and Corporate Service Providers Act, 2000

Financial and Corporate Service Providers

A person (company or individual) licensed to conduct the business of financial and corporate services in or from The Bahamas. For clarity purposes, the Inspector has adopted the definition enunciated by the World Trade Organization (WTO), which states that financial services include money broking, lending of all types and related services.

 

 

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