REVIEW - The Securities Commission of the Bahamas Regulatory Body

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Who are the Securities Commission of The Bahamas?

The Securities Commission of The Bahamas (SCB) is the main body responsible for the regulation and oversight of the financial services industry within The Bahamas. The SCB was set up in 1995 under the terms of the Securities Board Act (1995) – now repealed – to modernise the financial services sector in The Bahamas. It currently has its main office in the Nassau area of The Bahamas, where it has a relatively small office staff of 72 full-time employees (as of December 2018). The SCB has grown considerably in recent years as The Bahamas’ financial services industry has become established. It recently introduced new rules for the regulation of financial services firms providing forex and CFD trading services.

Regulatory areas and powers

Set up with the mission of establishing effective regulatory oversight in the areas of investment funds, securities and capital markets, and investor protection, the SCB is empowered under a number of pieces of legislation passed by the Parliament of The Bahamas. This includes the Securities Board Act (1995), the Securities Industry Act (2011), the Investment Funds Act (2019), the Financial and Corporate Service Providers Act (2003), and the Financial Transaction Reporting Act (2018).

Under this legislative framework, the SCB has a broad range of statutory powers, which includes advisory functions, reporting and surveillance functions, and the ability to fine corporate entities and individuals for any regulatory offences they might commit. In addition, it also has broad powers to investigate financial services companies where it deems it necessary to do so.

Additionally, the SCB is empowered to issue licences to investment fund administrators operating within or from The Bahamas under the terms of the Investment Funds Act (2003). Similarly, the Securities Industry Act (1999) provides the SCB with a range of powers to regulate the securities market in this region, which covers activities such as the issuing of public shares, financial bonds, and various other financial instruments. Most recently, it has also started offering investor education resources.

How to check if a broker is regulated by the Securities Commission of The Bahamas?

If you would like to check if your broker is regulated by the SCB, the easiest way to do this is to firstly check whether your broker has its license number listed on its website. If it does, you will simply be able to look up its record with the SCB online by using the search function on the SCB website. If you don’t have a license number, you can also conduct a general search through SCB online. This will allow you to check the regulatory status of the company in question and whether it is in good standing with the SCB. If you are unable to find your broker or company through the search facility, you can also direct queries directly to the SCB via email.

Making a complaint

If you would like to make a complaint to the SCB about a specific financial services firm or forex broker, simply head to the ‘Complaints’ section of the SCB government website. This will give you a complete overview of how the complaint process works and also some tips for how to file your complaint. Complaints can be filed with the SCB either via a dedicated email address, by mail, by telephone, or in person.

Brokers Regulated by Securities Commission of The Bahamas

• ActivTrades
• Pepperstone
• FxPro

Reprinted from Leaprate, the copyright all reserved by the original author.