The Tribune

Both government ministers directly responsible for the securities industry attended the first meeting of the Investment Funds Act Technical Team (IFATT), which will spearhead efforts to modernise the legislation.

Minister of dtate in the Ministry of Finance, Michael Halkitis, and minister of financial services, Ryan Pinder, joined the meeting at Luciano’s of Chicago on Friday, September 7, at the invitation of the Securities Commission of the Bahamas (SCB).

“I hope my presence here reinforces the need for a focus on modern legislation that maximises growth and development of the sector in a way that is fair to all of its stakeholders, and enhances the Bahamas’ reputation as a respected financial centre,” said Mr Halkitis.

Mr Pinder added that facilitating innovation by wealth managers in the Bahamas was critical to further developing the investment funds industry.

He said this could lead to a return to meaningful employment for many Bahamians, and create new employment opportunities for generations to come.

“We are thrilled to collaborate in this demonstration of support for modernising the legislative framework for the funds business to ensure balanced, holistic, internationally-respected legislation that fosters the kind of Bahamian innovation the industry has demonstrated in the past, and needs once more to grow and take a leadership position moving forward,” said MR Pinder.

The IFATT team has targeted the end of 2013 to bring a refromed Investment Funds Act into being.

The move coincides with what the Securities Commission describes as a shift in regulatory priorities for investment fund regulation, away from disclosure-based regimes to those that are prudential in nature.

The IFATT was assembled by the Securities Commission. The members of the team are: Antoine Bastian, president, Genesis Fund Services; Diveane Bowe, partner, KPMG; Omara Bingham, senior legal officer, Securities Commission; Brian Jones, associate director, UBS (Bahamas); Samantha Knowles-Pratt, partner, Delaney Partners; Mechelle Martinborough, legal counsel, Securities Commission; Michelle Neville-Clarke, partner, Lennox Paton; Andre Rahming, partner, King & Company; Dirk Simmons, managing director, Citco Fund Services; and David Thain, general manager, Arner Bank & Trust (Bahamas).

Financial secretary, Ehurd Cunningham, and Cassandra Johnson, project manager, at the Ministry of Financial Services, also attended the inaugural meeting.

Executive director of the Securities Commission, Dave Smith, said: “The SCB employs a consultative process, supported by international standard setters, such as the International Organisation of Securities Commissions (IOSCO), whenever it contemplates significant changes to the regulatory landscape.

“The SCB will draw on the real-world experience of the IFATT to draft the prospective legislation, but will continue to seek and rely on the input of the broader industry at various stages of the process.”

The Investment Funds Act was promulgated in 2003, repealing and replacing the Mutual Funds Act 1995. The IFA introduced the Specific Mandate Alternative Regulatory Test (SMART) Fund – heralded as an example of Bahamian innovation in the creation of financial products.