Securities Firm – SCB
What is the SCB and what does it do?
The Securities Commission of The Bahamas (SCB) is responsible for regulating and overseeing investment funds, securities, financial and corporate service providers, digital assets and registered exchanges, carbo credit trading and the capital markets in The Bahamas. Its mission is to protect investors and consumers, promoting sound regulatory practices in the financial services industry that facilitate sustainable growth and contribute to economic development. The Commission’s vision is to consist of a leading regulator that demonstrates excellence and expertise in the financial services industry, promoting confidence in the financial markets and fostering economic opportunities for the ultimate benefit of the public.
Why establish a Securities Firm in The Bahamas?
An established Securities Firm in The Bahamas benefits from:
- An expanding securities market,
- A growing insurance services,
- A modern and accommodating legislative framework, governing the activities of the financial services industry,
- No personal, capital gains, estate gift or inheritance taxes,
- No corporate tax unless revenue is derived from within The Bahamas,
- A large, skilled and strong work force. The Bahamas Institute of Bankers sponsors academic programs in conjunction with the College of The Bahamas that are designed to keep the nation’s workforce competitive.
- A low annual fee.
Types and Services of Securities Firms
Securities Firms can operate through varying business models due to the different combinations of activities and services that can be generated, based on the company’s business plan and vision. Securities Firms are distinguished in four categories:
- Dealing in Securities
- Managing Securities
- Advising on Securities
- Arranging deals in securities
The following table lists the specific authorized activities that can be offered under each category.
| License Category | Authorised Activities |
|---|---|
| Dealing in securities | This includes: (i) buying, selling, subscribing for or underwriting securities as an agent, (ii) buying, selling, subscribing for or underwriting securities as principal where the person entering into that transaction: (a) holds himself out as willing as principal, to buy, sell or subscribe for securities 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 securities 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 securities and such transaction is entered into as a result of such person having solicited members of the public in that manner |
| Arranging deals in securities | Making arrangements with a view to: (i) another person (whether as a principal or an agent) buying, selling, subscribing for or underwriting securities or (ii) a person, who participates in the arrangements, buying, selling, subscribing for or underwriting securities. |
| Managing securities | Managing securities belonging to another in circumstances involving the exercise of discretion. |
| Advising on securities | Advising a person on securities 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 security or (b) exercising any right conferred by a security or buy, sell, subscribe for or underwrite a security |
Regulatory Capital
A securities firm is required to maintain at all times financial resources to:
- meet its business commitments,
- withstand the risks to which its business is subject, and
- meet the prescribed requirements.
Application Fees
Fees payable to the Securities Commission of the Bahamas for the examination of the application are standard and independent of the services intended to be offered. In case the applicant wishes to register for more than one license categories the fee is also standard but greater than applying for one license category only.
Registration Fees
The registration fees for Securities Firm license depend on the license categories for which the firm will register.
Annual Fees
License annual renewal fees for Securities Firms also depend on the license categories for which the firm will hold.
Licensing 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.
Obtaining a Securities Firm license with SALVUS
The SALVUS Investment Firms Licensing team employs an advanced project management methodology, meticulously overseeing each licensing project. We draw upon our expertise in dealing with the SCB in The Bahamas to gather all the required information and compile the necessary documentation for submitting a comprehensive and well-supported application. Furthermore, we aid our clients in optimising the allocation of their financial resources, utilising a combination of in-house personnel, outsourcing agreements, and third-party providers.
Please contact us at info@salvusfunds.com to initiate a discussion about your licensing needs, whether they pertain to SCB Bahamas or other requirements. We understand that your business may face unique challenges, and we are ready to assist you in accomplishing your business objectives. We eagerly anticipate collaborating with you and being of value.
