The securities sector in Barbados can be broken into three broad categories: capital markets subsector, the funds subsector, and the public issuers of securities. The capital market subsector offers a wide range of capital market activities including stock brokering, marketing, and distributing issues, facilitating initial public offerings and other issuances, private placements, and other means of capital raising, and the provision of investment advice. This subsector also includes the agencies responsible for the execution and settlement of trades and the custody of assets such as exchanges and custodians, as well as entities offering other financial investment products. The market is an international one and accommodates both retail and institutional players. The funds subsector in Barbados is largely retail in nature and composes mainly mutual funds, otherwise known as collective investments schemes, as well as the agencies responsible for the administration of these funds. Public companies (known as reporting issuers under the Barbados’ legislative framework) represents the third tier and consist of any company that has issued securities to the public via the issuance of a prospectus whether in Barbados or elsewhere.
Entities and the individuals providing services in this sector are required to be registered/licenced under the Securities Act CAP318A and/or the Mutual Funds Act, CAP320B depending on the activity being conducted. The Financial Services Commission is the regulatory authority for the administration of the Securities Act CAP318A and the Mutual Funds Act, CAP320B and as such it is responsible for supervising and regulating all market actors: companies and individuals alike who offer securities services/ businesses in or from Barbados.
Regulatory & Supervisory Functions
The Commission supervises and regulates the securities market, and the investment fund industry in Barbados. It is therefore responsible for overseeing any company or individual which carries out securities related activities in or from Barbados such as securities companies, brokers, traders, dealers, investment advisers, underwriters, exchanges, central securities depositories, mutual funds, and mutual funds administrators/managers.
Staff of the Commission, among other things:
- review registration/licensing applications for corporate bodies and individuals seeking to undertake registered activities
- monitor the activities of registrants and licensees to ensure they are properly managing risks
- make recommendations for the exemptions and extension as permitted under the regulatory framework; and the delisting of securities
- review prospectus and other distribution materials
- continuously monitor registrants and licensees with respect to market conduct, as well as prudential and compliance requirements
- make recommendation for suspensions, revocations (voluntary and involuntary) of licensing
- initiate and handle enforcement action where entities fail to address concerns
- develop standards to contribute to a fair, orderly and efficient capital market
- assess takeovers and amalgamation and monitoring the process in keeping with the rules set out in the Companies (Take-over Bid) Regulations.
Stakeholder Engagement
The Commission is a member of the Caribbean Group of Securities Regulators (CGSR), and the International Organisation of Securities Commissions (IOSCO). Staff actively participate in conferences, industry meetings and joint regulator meetings on behalf of the Commission.
Figure 1: Current Division's structure
Process Maps
Figure 2: Application Process
