On Friday, the Securities Commission of The Bahamas (SCB), the regulatory agency responsible for authorising persons to operate in the investment funds and securities markets, issued Guidelines for the staledating of applications. According to a news release from the Public Relations Coordinator, the SCB had fomalised a Staledating Policy at the end of last month.
Any person wishing to carry on investment fund or securities business is required to make application to the SCB for the appropriate licence. This latest policy initiative on the part of the SCB clearly delineates parameters for the consideration of applications, and is intended to address particular situations that resulted in delays in the approval process.
The policy requires that applications be staledated where the applicant fails to complete its application after a period of 90 days. Special consideration may be given on a case-by-case basis to granting an extension of the period but, generally, applicants wishing to re-activate a staledated application must reapply to the SCB. The release further stated that the SCB will take the necessary steps to ensure that an applicant who has failed to complete an application in the set time does not engage in business without the proper authorisation.
The SCB expects that the Guidelines will bring additional structure to the authorisation process. They also reflect relevant international practice, and are indicative of the ongoing co-operative efforts between the SCB and the industry.