Matthias Knab: How will the new Bahamas Investment Fund Act tie into the puzzle? What will it enable?
Christel Sands-Feaste: The New Act will address a number of themes. It will satisfy the requirements imposed by the OECD with respect to funds that are marketed in the EU to EU investors to comply with AIFMD requirements, new provisions will be introduced to add additional protections for investors and certain improvements will be made to the existing legislation. In addition, investment managers to investment funds will be regulated in a manner that takes a risk-based approach; for example in some instances, investment managers will have to be licensed and in others, they will only be required to register.
The New Act seeks to address our international obligations, improve existing products that Brian mentioned earlier whilst maintaining a robust regulatory framework with the same degree of flexibility to take account of the different investment fund products; for example, Smart Funds.
In terms of timing, speaking from a private sector perspective, the hope is that the New Act will be implemented quickly. I can certainly say that many clients are asking when the New Act will be brought into force.
The above excerpt is taken from the Opalesque 2019 Bahamas Roundtable event in which Christel Sands-Feaste was a participant. To access the full report, download the PDF below.