Desfran provides a turnkey solution for financial licensing. To facilitate your process of applying for a Bahamas Securities Dealer license, we will:
- Promote your application to Bahamas regulators
- Assist with answering questions regarding the application process and requirements
- Draft and review application documents and questionnaires
- Follow up with the application and ensure the submission of additional information required by the related department of Bahamas
All market participants, subject to certain exemptions, must adhere to minimum physical presence requirements in the Bahamas, including:
A registered firm can appoint a managing representative that is approved by the Securities Commission and must be one of the following: a registered firm under the Act; an investment fund administrator operating in the Bahamas; a financial and corporate service provider; or an unrestricted bank & trust company licensed by the Central Bank of the Bahamas.
The Securities Commission will require that the registered firm and the managing representative enter into a service level agreement which details the arrangement between the parties.
A registered firm shall at all times maintain insurance policies in an amount appropriate to the complexity, size and nature of the securities business of the firm to cover at least professional indemnity.
Registration will not be granted should the Commission thinks that the coverage amount is insufficient.
However, this requirement does not apply to firms engaging exclusively in advising on securities.
Desfran shall seek to understand your business activities and goals to assist with your business plan drafting that best encompasses this whilst still being compliant to the prevailing regulations. Desfran shall also advise on the possible questions that might be posed by the regulator.
Filing and Reporting Requirements
Section 8 of the Banks and Trust Companies Regulation Act, 2000, requires that each licensee produce annual audited financial statements. Such statements are to be produced in accordance with International Financial Reporting Standards. Such financial statements must be furnished to the Inspector of Banks and Trust Companies and published in the Gazette within four months of the end of the licensee’s financial year. Further, all licensees (except where specifically exempt) are required to submit quarterly unaudited financial statements within twenty-one days of quarter-end.
(i) The client has made significantly large transactions on the market. The must have been an average of 10 of these transactions being made every quarter-year for the past 4 quarters.
(ii) Professional clients are not subjected to the leverage requirements or margin requirement.
(iii) Professional clients are not subjected to the leverage requirements or margin requirement.
Due Diligence is necessary to formally verify the identity of all clients of the firm. The following documents are required to conduct due diligence for the license application:
Please note for a company listed on a major stock exchange or subject to regulatory supervision in a country with equivalent AML regulations to the Bahamas, evidence of such listing or regulation will suffice in place of the above information. Where the directors to be appointed are employees of such a listed or regulated company, a certified passport copy and confirmation of employment (to include position) will suffice.
Securities Commission of the Bahamas, established in 1995, is committed to the growth and development of a vibrant, competitive financial services sector renowned for regulatory excellence. The Commission is responsible for regulating and overseeing investment funds, securities and the capital markets in The Bahamas. The Commission utilizes market surveillance, regulatory oversight, enforcement of securities laws and its investor education program to protect investors, maintain fair, efficient and transparent markets, and reduce systemic risk.
The Commission also functions as the Inspector of Financial and Corporate Services (“the Inspector”), having been appointed the Inspector on 1 January 2008. In this capacity, the Commission is responsible for ensuring that all persons operate in accordance with the Financial and Corporate Services Providers Act, 2000, which provides for the licensing and regulation of financial and corporate service providers.
Desfran assists with the complete licensing application. Contact us to find out more about the Bahamas company registration and forex license application. Our team of experts will get back to within the next business day.