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Regulatory Hearings Before the Securities Commissions of The Bahamas: What You Need to Know

Posted by M. Margaret Gonsalves-Sabola | Jan 23, 2018 | 0 Comments

The Securities Commission of The Bahamas may conduct regulatory hearings regarding the conduct of people and businesses falling within the ambit of the Investment Funds Act. The reasons for conducting a regulatory hearing and the powers of the Securities Commission to take action as a result of such a hearing is considered below.

Why Would the Securities Commission Conduct a Hearing?

The Securities Commission may conduct a regulatory hearing to determine whether someone has failed to comply with the Investment Funds Act, 2003 or the Investment Funds Regulations, or if there is likely to be a failure to comply in the future. A regulatory hearing may also be convened to investigate whether an investment fund or an investment fund administrator is carrying on business in a way that is not in the public interest; for example, by using deceptive practices to market the fund.

The Securities Commission may consider whether an investment fund or an investment fund administrator is carrying on business without complying with conditions imposed on its investment fund or investment fund administration licence. Finally, the Securities Commission may determine whether an investment fund or investment fund administrator is prejudicing investors, creditors, or a particular fund in the course of conducting its ordinary business or while it is winding up, dissolving, liquidating, or terminating its business. Investment Funds Act, 2003, Section 54.

The Securities Commission has been given a broad authority to conduct regulatory hearings to consider and decide issues related to investment funds and investment fund administrators.

Can the Securities Commission Impose Sanctions or Other Remedies?

Yes, the Securities Commission can decide to impose sanctions, remedies, or other relief as a result of regulatory hearings. Sanctions may include censures, fines not to exceed three hundred thousand dollars, payment of restitution, suspension or revocation of a licence or registration, reclassification of an investment fund administrator's licence, or revocation of approval or authorization to do some act. Other remedies include the power to require the substitution of a senior office of an investment fund or administrator, appointing a person to advise an investment fund or investment fund administrator on the proper conduct of its affairs, or appointing a person to assume control of the investment fund or investment fund administrator's affairs. Further, the Securities Commission may apply to the court for an order to take any other actions necessary to protect the interests of investors, creditors, or a particular investment fund. Investment Funds Act, 2003, Section 55.

To find out more about the regulatory hearings conducted by the Securities Commission of The Bahamas, visit Gonsalves-Sabola Chambers online or call the office at +1 242 326 6400.

About the Author

M. Margaret Gonsalves-Sabola

M. Margaret Gonsalves-Sabola is a civil and commercial litigation attorney and an accredited civil and commercial mediator. Margaret has over 21 years' experience in legal practice in the United Kingdom, Jamaica and The Bahamas.


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