Lawmakers in the Bahamas last week passed a key piece of legislation known as the Segregated Accounts Companies Bill which will be useful in the insurance and investment fund sectors.
Investment in a segregated accounts company allows a creditor or shareholder's investment to be insulated from creditors of the larger overall company, and marks a major step forward in enhancing the competitiveness of the jurisdiction’s offshore business sector.
Attorney General Alfred Sears explained during the passage of the bill that the new legislation would enhance the effectiveness of the Investment Funds Act, passed by Parliament in December 2003, which covers all aspects of the application, administration and supervision of funds, setting boundaries for acceptable practices.
Commenting on the passing of the bill, Financial Services and Investments Minister, Allyson Maynard Gibson, explained that:
"It provides in principle, the same basic statutory regimes as other jurisdictions with such legislation. It also permits a company that is registered as a Segregated Account Company to segregate its assets into separate accounts.”
The new law was also praised by the Opposition as a “progressive” piece of legislation.
Source: OCRA
