|
THE BANKS AND TRUST COMPANIES |
REGULATION ACT |
(CHAPTER 316) |
THE BANKS AND TRUST COMPANIES |
(EQUITY INVESTMENTS) |
REGULATIONS, 2005 |
S.I. No. 23 of 2005 |
The Governor of the Central Bank
of The Bahamas in exercise of the powers conferred by section 24 of the Banks
and Trust Companies Regulation Act, makes the following regulations - |
1. These Regulations may be
cited as the Banks and Trust Companies (Equity Investments) Regulations, 2005. | Citation. |
| Interpretation. |
“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 |
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(ii) any person identified in
paragraphs (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 |
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(ii) any person identified in
paragraphs (a), (b) or (c) of this Regulation; |
f) The immediate family members of
persons identified in paragraphs (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; | Ch. 316. |
3. No licensee shall, without
the prior written approval of the Governor - | Approval for Equity Investments. |
(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. | Definition of Person |
5. The Governor may impose a
tine not exceeding five thousand dollars where a licensee fails to comply with
the provisions of these Regulations. | Fine. |
Made this 13th day of April,
2005. |
Signed |
JULIAN FRANCIS |
Governor of the Central Bank of The Bahamas |