Establishing a Securities Firm in The Bahamas in 2026
The Bahamas has established a strong reputation as a leading international financial center in the Caribbean. It maintains a well-developed and diversified financial services industry, offering a wide range of products including private and commercial banking, investment funds, capital markets services, and insurance. The country’s strategic geographic position, political stability, and supportive regulatory framework have made it attractive to a significant number of global financial institutions. These firms benefit from a progressive legal system, a skilled workforce, and a strong commitment to international compliance standards, making The Bahamas an appealing jurisdiction for companies looking to operate in or expand across the Caribbean market.
A key pillar of this financial ecosystem is the Securities Commission of The Bahamas (SCB), which serves as the primary regulator of the securities and capital markets. The SCB is essential in preserving the integrity and stability of the financial system through the enforcement of regulatory standards aligned with international best practices. Its proactive supervisory approach, focus on investor protection, and risk-based regulatory framework help build confidence in the market and promote the sector’s sustainable growth. By supporting innovation while ensuring transparency and accountability, the SCB plays a significant role in the continued development of The Bahamas’ financial industry.
In this article, the SALVUS Investment Firms Licensing team delves into the benefits of obtaining a Securities Firm License in The Bahamas, the regulated activities available under the Securities Industry Act, 2024, and key points to consider, expanding on below:
1. Why register as a Securities Firm License in The Bahamas?
2. Registration Categories & Authorised Activities
3. Regulatory Capital Requirements
4. Registration Timeframe
5. How SALVUS can support your registration application
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1. Why register as a Securities Firm in the Bahamas?
Establishing a securities firm in The Bahamas under the oversight of the SCB allows a firm to conduct capital markets business in or from The Bahamas, subject to registration with the Commission under the Securities Industry Act, 2024. Under the Act, capital markets business means engaging in one or more regulated activities in the course of business, including entering or offering to enter into an agreement whose making or performance constitutes a regulated activity.
The Act frames the regime around investor protection, fair and efficient capital markets, reduction of systemic risk, mitigation of financial crime risks, and promotion of public understanding of the financial system. It also modernizes the regulation of securities exchanges and the securities industry, expands the powers of the SCB, and repeals the former Securities Industry Act, Chapter 363.
2. Registration Categories & Authorised Activities
Securities firms can adopt a range of business models based on the regulated activities they intend to conduct. Under the Securities Industry Act, 2024, a person may not carry on capital markets business in or from The Bahamas, or purport to do so, unless registered with the SCB to carry on that business. The regulated activities specified in Part 2 of the First Schedule are:
- Dealing in capital market instruments
- Arranging deals in capital market instruments
- Managing capital market instruments
- Advising on capital market instruments
- Providing margin financing
The table below outlines the specific authorised activities available under each category:
| License Category | Authorised Activities |
|---|---|
| Dealing in capital markets instruments | This includes: (i) buying, selling, subscribing for or underwriting capital markets instruments as an agent, (ii) buying, selling, subscribing for or underwriting capital markets instruments as principal where the person entering into that transaction: (a) holds himself out as willing as principal, to buy, sell or subscribe for capital markets instruments of the kind to which the transaction relates at prices determined by him generally and continuously rather than in respect of each particular transaction, (b) holds himself out as engaging in the business of underwriting capital markets instruments of the kind to which the transaction relates or, (c) regularly solicits members of the public with the purpose of inducing them, as principals or agents, to buy, sell, subscribe for or underwrite capital markets instruments and such transaction is entered into as a result of such person having solicited members of the public in that manner |
| Arranging deals in capital markets instruments | Making arrangements with a view to: (i) another person (whether as a principal or an agent) buying, selling, subscribing for or underwriting capital markets instruments or (ii) a person, who participates in the arrangements, buying, selling, subscribing for or underwriting capital markets instruments. |
| Managing capital markets instruments | Managing capital markets instruments belonging to another in circumstances involving the exercise of discretion. |
| Advising on capital markets instruments | Advising a person on capital markets instruments if the advice is: (i) given to the person in his capacity as an investor or in his capacity as agent for an investor or potential investor and (ii) advice on the merits of his doing any of the following (whether as principal or agent): (a) buying, selling, subscribing for or underwriting a particular capital markets instruments or (b) exercising any right conferred by a capital markets instruments or buy, sell, subscribe for or underwrite a capital markets instruments. |
| Providing margin financing | Providing any credit facility, advance or loan to facilitate, directly or indirectly, (i) the purchase of securities or other prescribed capital market instruments listed or to be listed on a registered exchange or a recognized foreign exchange; or (ii) where applicable, the continued holding of securities or other prescribed capital markets instruments, whether or not the securities or prescribed capital market instruments are pledged as security for the credit facility, advance or loan, but does not include the provision of — (a) any credit facility, advance or loan that forms part of an arrangement to underwrite or sub-underwrite securities or prescribed capital market instruments; (b) any credit facility, advance or loan to — (b.i) a company that is registered to deal in securities or prescribed capital markets instruments; or (b.ii) a company that is registered to undertake margin financing; (c) any credit facility, advance or loan by a company to its directors or employees to facilitate the acquisition or holding of its own securities or prescribed capital markets instruments; (d) any credit facility, advance or loan by a financial institution for the purpose of facilitating purchases or holding of securities or prescribed capital market instruments by the financial institution’s clients; or (e) any credit facility, advance or loan by an individual to a company in which that person holds 10% or more of its issued share capital to facilitate the acquisition or holding of securities or prescribed capital market instruments by that company. |
Contact us at info@salvusfunds.com if you are interested in establishing a Securities Firm in The Bahamas; our Investment Firms Licensing team is ready to answer your questions.
3. Regulatory Capital Requirements
A securities firm licensed by the Securities Commission of The Bahamas is required to maintain adequate financial resources at all times to ensure that it can operate in a sound, responsible and sustainable manner within the applicable regulatory framework. This requires the firm to hold sufficient capital to meet its ongoing business obligations, including operating expenses, contractual commitments and client servicing needs, while also being able to absorb the financial risks associated with its activities. The firm must also comply with any applicable financial thresholds or prudential requirements prescribed by the SCB under the relevant laws, regulations or policies. The capital requirements set out under the Securities Industry Regulations are outlined below.
| Type of License | Capital Requirement |
|---|---|
| Class I broker-dealer | at least $300,000 of regulatory capital |
| Class II broker-dealer | at least $120,000 of regulatory capital |
| Class III broker-dealer | $60,000 of regulatory capital |
| Class IV broker-dealer | $25,000 of regulatory capital |
| Securities Investment Advisor | $25,000 of regulatory capital |
“Regulatory Capital” means cash and cash equivalents, money market funds held in The Bahamas, market value of securities of the Government of The Bahamas less 10%, and the market value of securities listed on a securities exchange.
4. Registration Timeframe
Typically, the completion of the application process is estimated to be between 3 to 4 months. However, this duration depends on the completeness and quality of the information provided, as well as the applicant’s ability to present a well-defined business plan.
5. How SALVUS can support your licensing application?
At SALVUS, our Investment Firms Licensing team is dedicated to delivering a fully customized approach to regulatory licensing, designed to align precisely with the distinct characteristics and strategic objectives of each client. We recognize that every business model is different whether focused on brokerage, asset management, advisory services, or fintech solutions so we begin the process with a deep dive into your firm’s vision, operations, and intended market positioning. This allows us to accurately determine the most suitable licensing category under the applicable regulatory framework, such as those defined by the SCB, and provide clear guidance on the associated compliance obligations, capital requirements, and ongoing regulatory expectations.
From there, our team collaborates closely with your internal stakeholders to gather all necessary documentation, draft policy frameworks, and prepare the application package to meet the regulator’s exact standards. Leveraging our long-standing experience in financial regulation, we act as the key intermediary between your firm and the regulatory authority, ensuring proactive communication, rapid issue resolution, and transparent updates throughout the licensing journey. Our objective is not only to secure your registration efficiently but to also position your firm for long-term compliance and operational success in your chosen jurisdiction.
If you’re considering establishing a Securities Firm in The Bahamas, our dedicated Investment Firms Licensing team is here to guide you every step of the way. For expert advice and personalized support, reach out to us at info@salvusfunds.com—we’re ready to answer your questions and help turn your plans into a compliant and successful reality.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.