The Bahamas has made significant strides in the investment funds area, particularly in the past few years with the passage of the Investment Funds Act in 2003. The modern Act which established three primary categories of funds – Professional funds, SMART funds and Standard funds allowed for greater efforts to market The Bahamas as a domicile for investment funds and for the growth in this important sector.
With the introduction of the legislation, The Bahamas continued to adopt a licensing regime which is different to the registration system adopted by some jurisdictions. The Bahamas model for licensing is due to the membership by the Securities Commission of The Bahamas (SCB) in the International Organization of Securities Commissions (IOSCO). Although industry preferred the registration route, it recognised and agreed that IOSCO membership is in the best long-term interest of the funds industry in The Bahamas, since it reinforces the legitimacy of the jurisdiction as one which is
