The recently tabled Investment Funds Bill, 2019, will bring about exciting new prospects for growth in the private wealth management sector, one leading industry insider recently said.
Graham Thompson partner Ryan Pinder said the updated legislation should make it more attractive to set up institutional funds in The Bahamas.
“The prospect of future growth in our funds space is very exciting,” Pinder said in a recently released report by Global Fund Media and the Bahamas Financial Services Board.
“Major international fund administrators are not in the business of taking on fiduciary risk in the context of fund administration.
“I think the segregation of duties and the new licensing of fund managers is going to go a long way to demonstrating that we have the commitment to develop an institutional fund market.”
The bill, which was tabled in the House of Assembly last week, replaces the previous 2003 legislation and will bring the sector in line with international standards established by the European Union (EU) under the Alternative Investment Fund Managers Directive (AIFMD).
“One of the most exciting components of the new Investment Funds Act will be the ability to properly allocate the fiduciary obligations in the right places; that is, back to the fund manager and not left solely to the fund administrator,” said Pinder, who is a former minister of financial services and trade.
“That should make it more attractive to setting up institutional funds in The Bahamas”.
Features of the new bill include the introduction of requirements for fund managers and regulatory oversight for custodians; the introduction of triggers for the licensing of investment funds; the definitions of “Bahamas-based” and “non-Bahamas-based” funds, which ensures compliance with the EU’s substance requirements; the introduction of provisions to allow international administrators without requiring them to hold a license in The Bahamas, and the establishment of a regulatory regime compliant with the EU under the AIFMD.
Paige started working as a business reporter in August 2016.
Education: Palm Beach Atlantic University in 2006 with a BA in Radio and Television News
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