The Securities Commission of The Bahamas (SCB) has issued a warning to clients or potential investors doing business with the unregulated company Mercury Global Ltd., the same company that the Swedish Financial Supervisory Authority has warned its investors against doing business with.
According to Hillary Deveaux, Acting Executive Director at SCB, “We have sent out a cease and desist letter to them and there is a possibility that we may in fact take legal action against them.”
He said it was important for SCB to make the public aware that they were “not dealing with a bona fide market participant” as they are not registered by SCB to transact in securities activities in The Bahamas. He said investors who forge ahead with that company are doing so at their own risk.
In addition, a notice SCB posted in the dailies on Monday advised that they were not aware of a proper listing for the purchase of shares offered through Mercury on behalf of several companies, among them Pipeline Security Technologies (PST).
The company is also “engaged in providing investment advice to the public” which investors should be aware of.
SCB confirmed that it was informed by a potential investor about the company as well as by an overseas regulator.
Generally Mr Deveaux said they weren’t aware of companies like Mercury operating in The Bahamas unless it is brought to their attention. “Its difficult for regulators to have knowledge about rogue operators. We really don’t know whether companies are operating in this jurisdiction unless we are in fact informed by a regulator in some other jurisdiction or a potential investor that has been solicited by the company.”
Additionally, he said it was also important for investors to do proper due diligence on companies they are considering doing business with.
Mr Deveaux said he had no idea how many set-ups like Mercury exist in The Bahamas.
By: BARRY WILLIAMS, The Nassau Guardian
