Bahamas Securities Dealer License

The legislative regime regulating securities intermediaries in The Bahamas was recently overhauled by the introduction of the Securities Industry Act, 2011. This has led to the attractiveness of the jurisdiction as a hub for entities engaged in conducting securities business in or from The Bahamas.

 

Key Features

The Securities Industries Act, 2011 provides for the regulation of the securities industry in the Bahamas. The following activities are governed by the Act:

  • Dealing in Securities;
  • Arranging Deals in Securities;
  • Managing Securities; and
  • Advising on Securities.

Government fees:

  • Individual/Firm

Application Fee (US$)

Registration Fee (US$)

Annual Renewal Fee (US$)

  • Dealing in securities

700

7,000

8,000

  • Managing securities

700

6,000

7,000

  • Advising on securities

700

4,000

5,000

  • Arranging deals insecurities

700

3,000

4,000

  • CEO

250

  • Compliance Officer

250

  • Representative – advising/dealing/trading/discretionary

200

Registered Firms engaging in the business of managing and/or advising on securities can satisfy the requirement for a physical presence by appointing a managing representative in The Bahamas. The managing representative must:

  • be a Registered Firm, an investment fund administrator operating in The Bahamas holding a restricted or unrestricted administrator’s license, a licensed financial and corporate services provider or a licensed bank or trust company holding an unrestricted license,
  • have knowledge of the type of activities of the firm for which it wishes to act as managing representative, the technical and managerial resources and operational capacity to act as a managing representative, be fit and proper and meet such other requirements as may be prescribed by the Commission and
  • be approved by the Commission. A service level agreement containing the prescribed information must be entered into between the proposed managing representative and the relevant firm seeking registration.

A Registered Firm must maintain adequate financial resources to meet its business commitments withstand the risks to which its business is subject and meet the prescribed requirements. The minimum levels of regulatory capital under the Act for each category of securities business have not yet been prescribed by the Commission.

 

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Bahamas Company

  • Local physical office required

Yes

Share capital or equivalent

  • Minimum paid-up capital

None

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

No

Shareholders

  • Minimum number

2

  • Corporate shareholders allowed

Yes

  • Local  shareholders required

No

Service Providers Required

  • Company Secretary

No

 

Tax Treatment

The Bahamas has no income taxes, withholding taxes, capital transfer taxes, wealth taxes or gift and inheritance taxes.

 

Duration to Set Up

Around 3 to 6 months

 

Distinctive Benefits of Licence

A Finely tuned regulatory regime that provides confidence in the quality of supervision while ensuring that the demands of the investment community can be met.

 

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers