The Tribune

By ANNELIA NIXON

anixon@tribunemedia.net

A MONEY broker yesterday revealed its operations have been placed on hold after receiving a warning from the Securities Commission that it was conducting business “illegally”.

Jervin Smith, principal of JTS Investment Securities, which trades as Loans by Phones, told Tribune Business the company has temporarily suspended operations while it seeks to obtain the necessary licence that would bring it into compliance with the Financial and Corporate Service Providers Act 2020.

“I’m working on that now,” he said of the licence application. “We’re not conducting business anymore. Well, not that kind of business.” Mr Smith confirmed he had received a warning letter on August 2 from the Securities Commission, which ordered him to “cease and desist” from any involvement in money broking or related activities.

The regulator, in a notice issued to the public yesterday, warned Bahamians they would be conducting business and financial transactions with an entity that was “not authorised or regulated” by itself because Loans by Phones had failed to register with it as required by the 2020 Act.

While the East Street South-based business had been licensed, and registered, under the original Financial and Corporate Services Providers Act 2000, it had failed to renew this during the six-month transition period granted when it was replaced by the 2020 version.

“It has come to the attention of the Commission that JTS Investment Securities Ltd, doing business as Loans By Phone, is conducting activities in or from within The Bahamas that is either registrable/licensable or illegal under the Act,” the Securities Commission said.

“The Commission hereby advises the public that this entity and its agents/representatives are not registered with or licensed by the Commission. Therefore, any registrable/licensable activity conducted in or from within The Bahamas by this entity and its agents/ representatives constitutes a violation [under] the Act.”

The Securities Commission alleged that Loans by Phones failed “to make this transition”, and become licensed under the 2020 Act, when it repealed and replaced the first version. As a result, it “does not have a licence to conduct any activity under the Act. Further, the entity has continued conducting its money broking operations, which is unlawful under the Act”.

Mr Smith, though, said that once informed of Loans by Phones’ non- compliance he began the process of applying for a new licence under the 2020 Act. Describing this as ongoing, he added that attorneys are now involved and said: “It’s just a matter of now making the new application.”

Mr Smith said he should be reapplying in another week or two, adding that the registration process has become much more tedious and requires greater professional input from the likes of accountants and compliance officers.

In the meantime, he said he is pursuing other business lines and has stopped promoting Loans by Phone. Mr Smith added that he is trying to deactivate Loans by Phone’s Facebook page even though Tribune Business research showed that it featured postings made as recently as Tuesday, August 6.

Mr. Smith added that he was previously unaware the Financial and Corporate Service Providers Act,2000 was repealed and blamed this on a lack of communication.

“Not to blame the Commission, because you’re supposed to keep up to-date with your things. Maybe it might be because of COVID and the communication,” Mr Smith argued. “With COVID, everybody was locked down and everybody came out of COVID, so the Act was passed. I think the new Act was done during the COVID time.”