The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Securities Commission’s top executive yesterday said the main law governing the Bahamian capital markets will undergo an “overhaul” this year.

Christina Rolle, the regulator’s executive director, told a webinar organised by Hubert Edwards, principal of Next Level Solutions: “Last year, we had an industry briefing where we went into a lot of details about our securities industry, financial resources rules, or what you may know as our regulatory capital rules. These rules are in the final stages of being reviewed.

“We expect this year to complete an overhaul of the Securities Industries Act. we commenced that overhaul at the beginning of the year. For many of you who familiar with the legislation, the Securities Industries Act is a piece of legislation that is ten years-old. So the legislation is in need of update.

“There’s been a lot of advancement in the securities industry since the legislation was enacted in 2011, and so we’re seeking to better align all of the operational changes in the capital markets and the securities industry with the way we regulate. We’re also going to fine-tune some of the definitions of registrable activity at the same time.”

Ms Rolle said the reforms plan to “rationalise and clarify” how investment fund managers participate in the sector, “especially around the issue of independence”. She added: “This issue really came up after the Act and the regulations came into force.

“I guess it came up as people began to use the legislation, and so we do think that there needs to be some clarity around the issues of independence. We have that high on our agenda to complete this year.”

Ms Rolle continued: “We want to clarify a couple of other aspects to ensure that certain market participants are appropriately captured, and also to clarify the closed-end funds that are subject to regulation.

“With respect to the financial and corporate service providers, on Wednesday we issued for public consultation what we refer to as the financial and corporate service providers (money lenders) rules.

“What these rules do for those of you who use the FCSP (Financial and Corporate Services Providers Act), you know that it includes non-bank money lenders that are registered under the Act,” she added.

“So, these rules are specifically addressing non-bank money lenders. I think that there are a couple of things that people want to pay attention to with respect to these rules and, specifically, they must provide for the fair treatment of clients, responsible lending and ensuring that representatives of money lenders are proper.”