The Securities Commission of The Bahamas (SCB) has published guidelines on the fast tracking of investment fund licence applications targeting accredited investors.
The fast track process, which provides for the approval of this category of investment funds within 72 hours of receipt, eliminates the delay in the processing of applications caused by the extensive due diligence exercise undertaken in regular applications.
While due diligence will still be undertaken, this will now take place following the granting of the licence as is the practice in several competing jurisdictions, the SCB revealed.
This is because the investment funds in question are targeting investors who are expected to be knowledgeable of the industry and capable of conducting their own due diligence, thereby requiring a reduced level of scrutiny by the regulator.
The guidelines are comprehensive and cover the various requirements for licensing of these investment funds and the application process. Specific guidance is provided regarding the nature and quality of the documents required, as well as what due diligence information will be necessary on parties related to the investment fund.
The SCB stated that the guidelines will prove an essential element in the successful and timely consideration of applications.
Amanda Banks, Investors Offshore
