securities commission of the bahamas at a glance

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ENFORCEMENT MATTERSIn 2006, the Commission utilised several enforcement measures to protect investors from unfair and inappropriatesecurities and investment activities. Specifically, the Commission issued two public notices and two press releases andheard a total of five matters before the Disciplinary Committee.PUBLIC NOTICESThe public notices issued by the Commission in 2006were:(1) Dominion Investments (Nassau) Ltd. – issuedon March 6, 2006 and(2) Williams Matthey Ltd. (WMAM) – issued onApril 7, 2006.All public notices are posted and archived on theCommission’s website.PRESS RELEASESThe press releases issued by the Commission in 2006were:(1) Dominion Investments (Nassau) Ltd. – issued onFebruary 26, 2006.(2) Sterling ACS Ltd. and Howell W. Woltz &Vernice Woltz – issued on April 26, 2006.All press releases are posted and archived on theCommission’s website.DISCIPLINARY COMMITTEEFive matters were brought before the Disciplinary Committee during 2006. The Disciplinary Committee recommendedthat administrative action be taken on four of the matters and that the other be forwarded to the Office of theAttorney General.LEGISLATIVE UPDATESIn 2006, there were several legislative amendments and updates. Those updates include: additional countries addedto the Prescribed Jurisdiction List and the approval of the SMART Fund Model 005.Commission being satisfied that it was comparable to(1) Additions to Prescribed Jurisdiction Listthat of The Bahamas.Where a fund is incorporated or a fund appoints itsinvestment advisor or manager in The Bahamas it is tobe a Bahamas-Based Fund and is therefore, required tobe licensed by the Commission. However, if aBahamas-Based Fund is licensed in a jurisdictionprescribed by the Commission, it can be registered as aRecognised Foreign Fund and would thereby be subjectto a lighter touch regulatory regime.In October, 2006, the Commission approved the BritishVirgin Islands, Bermuda and the Channel Islands,Guernsey and Jersey, as prescribed jurisdictions basedon a review of the named jurisdiction’s regulatoryregime and the(2) Specific Mandate Alternative Regulatory Test(SMART) Fund Model 005The Specific Mandate Alternative Regulatory Test(SMART) Fund was introduced as a new style ofcollective investment vehicle with the IFA, 2003. TheSMART Fund is a flexible product that allows industryparticipants to provide clients with structuringsolutions via a regulated vehicle. With thepromulgation of the IFA, 2003 four SMART FundModels were established.In 2006, the Commission approved a fifth SMART FundModel (SFM 005), a private structure for individuals orfamilies limited to no more than five investors who12.....................................................................................
SECURITIES COMMISSION OF THE BAHAMAS 2006hold equity interests in the fund, and to whom aProfessional Fund may be offered.The SFM 005 requires the appointment of anadministrator, but does not require the administratorto be licensed by the Commission, with the additionalprovision that the administrator must be a financialinstitution as defined in the rule.INTERNATIONAL AND DOMESTIC COOPERATIONThe Commission, recognises that in its efforts toensure the continued development and growth of thesecurities and capital markets and investment fundsindustry, a combination of factors need to be present:a comprehensive regulatory regime; an educated andcompetent staff and the cooperation of international,regional and domestic regulatory bodies and groups.Participation and membership in organisations such asthe International Organization of SecuritiesCommissions and the Council of Securities Regulatorsof the Americas (COSRA), allows the Commission tostay abreast of best practices implemented ininternational and regional securities and investmentbusiness sectors.Continued dialogue has been maintained with ourinternational partners through the Inter-AmericanRegional Committee (IARC)/COSRA. In addition, theCommission is also a member of the Group of FinancialServices Regulators (GFSR).ISOCO-IARC/COSRAIn September 1996, the Commission was grantedmembership in IOSCO, the international standardssetter for the securities and capital markets. Itsmembership comprises 90% of the world’s securitiesregulators and other similar regulatory agencies fromcountries throughout the world. The purpose of IOSCOis to enable members to exchange information with aview to developing the securities markets andimproving their efficiency, to coordinate theenforcement of securities regulation internationallyand to implement common standards.country and to develop the growth of sound securitiesmarkets that are fair to all investors. Membership toCOSRA is open to all securities regulatory authorities ofNorth, South and Central America and the Caribbeanand has a total of 31 members in 26 countries.CARIBBEAN GROUP OF SECURITIES REGULATORSThe Caribbean Group of Securities Regulators (CGSR) isan in-formal group of securities regulators; the CGSRwas established to strengthen the regulatoryframework for securities within the Caribbean. It givesthe region a unified voice on the international stageand also gives the region greater standardisation andcoordination of institutional structures. It facilitatesthe sharing of information, promotes regulatorycapacity building and strengthens training in theregion. In October of this year, The Bahamas hostedthe Third Annual Conference for the Caribbean Groupof Securities Regulators. The conference focused onaddressing matters such as combating market abuse,corporate governance, enforcement, mergers andacquisitions and minority shareholders' interests,hedge funds regulation and the relaxation of exchangecontrols.GROUP OF FINANCIAL SERVICES REGULATORSSince 2001, the Commission has been a member of theGroup of Financial Services Regulators (GFSR), which isa domestic body comprising of the five regulators thatoversee The Bahamas’ financial services sector. ThisGroup was established to focus on the harmonisationof the regulatory regime in the country. The regulatorsgoverning The Bahamas’ financial services sector are:At COSRA’s annual meeting in Santiago, Chile in June1997, the Commission was confirmed as a member.COSRA, formed in 1992, was created to provide aforum that promoted cooperation and communicationamongst its members to enhance the efforts of eachThe Central Bank of The Bahamas;The Securities Commission of The Bahamas;The Registrar of Insurance Companies;13
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securities commission of the bahamas at a glance

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