The Securities Commission of The Bahamas (SCB) today issued a release concerning the publication of its Guidelines relating to the fast tracking of applications for the licensing of investment funds that "target accredited or sophisticated investors."
The fast track process provides for the approval of this category of investment funds within 72 hours of receipt of a complete application. The process is facilitated by the elimination of delays 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 -- similarly to practices already in place in several competing jurisdictions.
The SCB rationalises that the investment funds in question target investors who are expected to be knowledgeable of the industry and capable of conducting their own due diligence; hence, they require a reduced level of scrutiny by the regulator. The due diligence process is aimed at ensuring that applicants and all related parties are fit and proper for the performance of their duties.
The Guidelines form a comprehensive document covering the various requirements for licensing of these investment funds and the application process. Specific guidance is provided regarding the nature and quality of documents required, as well as due diligence information necessary for parties related to the investment fund. Details on the proper completion of the application form are also provided.
Today's release from the SCB notes that the Guidelines, when fully followed, should result in successful and timely consideration of applications.
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