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Securities - Supervisory Framework

Supervisory Framework

The mandate of the Securities Division is to protect investors in the capital market from market abuses and fraudulent practices whilst promoting a fair, efficient and transparent market.

The regulatory framework through which the Division exercises its functions includes:

  • Laws and Regulations;
  • Guidelines;
  • Directives;

· Other communications regarding principles, policies & procedures; and

  • Industry Consultations

Key functions performed by the Division comprise, but are not limited to:

· The review of applications for registration and licensing and providing recommendations for the granting or refusal of registration and licenses;

· Providing continuous monitoring of registrants and licensees with respect to compliance requirements, filings, and material changes;

· The approval of material transactions such as takeovers and amalgamations of public companies;

· The regulation of activities of registrants and licensees;

· The issuance of receipts for prospectus filings;

  • Examinations;

· Enforcement which includes making recommendations for suspensions or revocations of registration or licenses;

· The investigation of complaints against self-regulatory organisations and market actors; and

· Providing recommendations with regards to regulatory policies, procedures and legislation.

Entities currently under the supervision of the Securities Division are as follows:

· Self-regulatory organisations (includes an association of securities companies, a clearing agency, a central securities depository, a stock exchange);

  • Brokers in securities;
  • Investment Advisers;
  • Dealers in securities;
  • Traders in securities;
  • Underwriters of Securities;
  • Securities Companies;

· Issuers of Securities including Reporting Issuers;

· Mutual Funds – Exempt Mutual Funds, Limited Investors Mutual Funds, and (General) Mutual Funds; and

· Mutual Fund Administrators / Managers

Local Capital Market

Barbados’ capital market facilitates among other things opportunities for companies to obtain equity financing through public issues of securities. Generally, securities of public companies are listed on the country’s sole stock exchange, the Barbados Stock Exchange Inc. (“BSE”) with clearing facilities being provided by the BSE’s subsidiary the Barbados Central Securities Depository Inc. Securities on the BSE consist of both local and cross-listed companies. There are a number of securities companies and other market actors involved in the buying and selling of securities.

A number of domestic and foreign funds are licensed with the FSC. Administration of these funds is conducted by mutual fund administrators/managers holding either a general mutual fund administration licence or a restricted mutual fund administration license.

A list of the reporting issuers, market actors, mutual funds, mutual fund administrators and other registrants and licensees regulated by the Securities Division may be found under Regulated Entities.

 

 

Memberships

The Financial Services Commission is a member of a number of regional and international organisations whose focus is the effective regulation of the capital market. The FSC is represented in the following organisations:

· Caribbean Group of Securities Regulators;

· Offshore Group of Collective Investment Scheme Supervisors;

· Council of Securities Regulators of the Americas; and

· International Organisation of Securities Commissions.