The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Securities Commission of The Bahamas (SCB) issued the Securities Industry Bill 2024 for public consultation last week - which seeks to ensure laws are "current, competitive, and reflect international best practice and standards".

A key update is the regulator’s right to impose sanctions for statutory breaches without a prior hearing.

The SEC said: “The Bill updates and clarifies the commission’s supervisory authority framework to enable the Commission to address non-compliance with specific statutory obligations immediately through automatic administrative action without a hearing or disciplinary action process.

“These supervisory actions include: Automatic fines; Ability to issue orders to licensees and registrants to take specific actions or to cease and desist specific activities; and ability to require/access any information needed by the Commission to assess the current status of the licensee or registrant as it relates to non-compliance; and attach specific conditions to the license or registration of the non-compliant licensee or registrant.”

The proposed bill also includes updates to the legislative framework to provide specific enforcement authority related to AML/CFT obligations and address deficiencies in the current enforcement regime.

Provisions to publish penalties levied by the regulator have also been included in the proposed bill with penalties to be made public "as soon as practicable" along with the reason for the breach and identity of the offender.

It said: "Provisions addressing when and what information regarding penalties is appropriate for publication are included in the Bill. Penalties will be required to be published as soon as practicable after the person on whom the penalty is imposed has been informed of that decision and the Notice should include the final decision or summary thereof, the reasons for the decision and the identity of the person against whom the decision is made.”

The proposed bill also updates the requirements for winding up and freeing a company’s assets.

It said: “Updated the legislative standards around freezing assets including scope, of authority and the duration of freeze orders, standards around court involvement and flexibility to extend, remove or refer matters for continuation in courts etc.

“The Bill updates the legislative framework to establish the Commission’s authority and locus standi in any matter relating to the dissolution of a licensee or registrant of the Commission. This includes initiating the winding up of registrants. In this regard the Bill sets the foundation for legislative provisions in subsidiary legislation which will address the framework for winding up licensees and registrants by the Commission including: Approval to windup;… and ongoing reporting.”

The consultation period for the bill ends on March 1.