HM Revenue and Customs (HMRC) has designated the Bahamas International Securities Exchange (BISX) as a ‘recognised stock exchange’ under Section 1005 (1) (b) Income Tax Act 2007. The designation became effective last month.
A [release](http://www.hmrc.gov.uk/fid/bis-news.htm) from HMRC notes that securities admitted to trading and listed on the entire BISX will meet the HMRC interpretation of ‘listed’ as set out in Section 1005 (3) (a) and (3) (b) Income Tax Act 2007. Also with effect from 19 April 2010, BISX is regarded as a recognised stock exchange for Inheritance Tax purposes.
BISX Chairman Ian Fair notes *“I am very pleased that BISX has satisfied the requirements of HMRC in order to be designated as a recognised stock exchange. I believe that this is a significant achievement for BISX that sends a strong message to the international community that BISX is an organization that maintains rules, operating procedures and standards that are acceptable to the international community.”*
BISX Chief Executive Officer Keith Davies says the local Exchange attained this designation after undergoing a rigorous application process that involved satisfying HMRC that BISX meets its requirements to be designated as a recognised stock exchange. He continues, *“May 2010 marks the tenth year of market operations for BISX and our we continue to make positive strides in the development of capital markets in The Bahamas. We realize that no stock exchange operates in a vacuum; therefore, it is important to ensure that your regulatory regime remains acceptable both within and outside of your jurisdiction.”*
The BISX CEO further advises that the Exchange is presently pursuing other international recognitions that it believes will add value to the Exchange and to its membership. “*We will continue to keep the Bahamian capital markets informed as we add new recognitions that may assist the country in remaining internationally competitive.”*
The HMRC designation as a recognised stock exchange will permit the Exchange to attract new business streams in the form of mutual fund listings and other specialized product listings that would benefit from being listed on an Exchange with the HMRC designation.