Banks and Trust Companies (Equity Investments) Regulations

Link to law: http://laws.bahamas.gov.bs/cms/images/LEGISLATION/SUBORDINATE/2005/2005-0023/BanksandTrustCompaniesEquityInvestmentsRegulations_1.pdf
Published: 2005-04-13

Banks and Trust Companies (Equity Investments) Regulations
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.
Read Entire Law on laws.bahamas.gov.bs