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Banks and Trust Companies (Equity Investments) Regulations


Published: 2005-04-13

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CH.316 – 20] BANKS AND TRUST COMPANIES REGULATION

STATUTE LAW OF THE BAHAMAS LRO 1/2008

BANKS AND TRUST COMPANIES (EQUITY INVESTMENTS) REGULATIONS

ARRANGEMENT OF SECTIONS

SECTION

1. Citation. 2. Interpretation. 3. Approval for Equity Investments. 4. Definition of Person 5. Fine.

BANKS AND TRUST COMPANIES (EQUITY INVESTMENTS) REGULATIONS

(SECTION 24) [Commencement 13th April, 2005]

1. These Regulations may be cited as the Banks and

Trust Companies (Equity Investments) Regulations. 2. In these Regulations — “control” means the power, whether arising from

ownership, contract, guarantee, agreement, or otherwise, whereby one person can direct the affairs of another;

“licensee” means any Bank or Trust Company which is incorporated in The Bahamas and which holds a licence granted under section 4 of the Act:

“related party” includes — (a) a person that controls, whether directly or

indirectly, a licensee; (b) a person that is controlled, whether directly or

indirectly, by the person that controls the licensee;

(c) the subsidiaries or associate companies of a licensee;

(d) the directors, executive officers, senior staff of —

S.I. 23/2005

Citation.

Interpretation.

BANKS AND TRUST COMPANIES REGULATION [CH.316 – 21

LRO 1/2008 STATUTE LAW OF THE BAHAMAS

(i) a licensee; (ii) any person identified in paragraph (a), (b), or

(c) of this regulation; (e) any person who, either alone or together with any

associate, is entitled to exercise control over ten percent or more of the share capital of — (i) a licensee; (ii) any person identified in paragraph (a), (b) or

(c) of this regulation; (f) the immediate family members of persons

identified in paragraph (a), (d) or (e) of this regulation;

(g) partnerships, companies, trusts or other entities in which an immediate family member referred to in paragraph (f) of this Regulation, has a controlling interest; and

(h) any person that manages or is managed by a licensee under a management contract.

“the Act” means the Banks and Trust Companies Regulation Act;

3. No licensee shall, without the prior written approval of the Governor —

(a) acquire or hold the shares, securities or other interests in or of any person that is a related party to the licensee; and

(b) acquire, either directly or indirectly, more than five percent of the shares, securities, or any other interests in any other person.

4. For the purposes of these regulations, “person” includes an individual, a sole proprietorship, partnership, joint venture, foundation, trust, estate, business trust, company, corporation, fund, unincorporated association or organization, sovereign government or agency, instrumentality, or political subdivision thereof, or any similar entity or organization.

5. The Governor may impose a fine not exceeding five thousand dollars where a licensee fails to comply with the provisions of these Regulations.

Ch. 316.

Approval for equity investments.

Definition of person

Fine.