Further procedures for the operations framework of the recently implemented investment regime in The Bahamas are being laid out for public consultation.
The Draft Investment Funds Regulations, 2019 which were recently released by the Securities Commission of The Bahamas (SCB), are intended to supplement the Investment Funds Act (IFA), 2019 which was passed in Parliament earlier this year.
The regulations would introduce comprehensive requirements for the licensing of investment funds, as well as introduce comprehensive requirements on the duties and obligations of licensees in the management and operation of their business.
Additionally, they address the types of applications which can be made and ongoing reporting obligations of persons required to be licensed under the Investment Funds Act, 2019.
The IFA has been heralded as the introduction of a new chapter in Bahamian financial services, which would bring the sector in line with international standards established by the European Union (EU) under the Alternative Investment Fund Managers Directive (AIFMD).
It is also a critical piece of legislation for The Bahamas to prove to international watchdogs that it is a compliant jurisdiction.
Further features of the regulations include the
establishment of a regulatory framework for operators, custodians, investment fund managers and investment fund administrators; the setting out by schedule of the various forms to be used by licensees and applicants; and the establishment of the specific duties and obligations to enable investment funds and investment fund managers to meet the requirements of the AIFMD.
This is the second round of public consultation on these regulations, which now include the suggestions from the initial consultation period in Spring 2018, according to the SCB.
The consultation period commenced on November 28, 2019 and ends on December 20, 2019.