Regulatory Alerts2021-07-01
Added · Updated
Securities Industry (Business Capital) Rules, 2021
These Rules establish the regulatory framework for equity-based crowdfunding and business funding in The Bahamas, applying to eligible small and medium-sized enterprises, project initiators, and registered crowdfunding platforms. They exempt eligible persons from filing a prospectus provided they submit a crowdfund offering document and a Notice of Exempt Transaction, while imposing a $500 filing fee. The regulations cap fundraising at $5 million per project initiator within a twelve-month period and restrict non-accredited investors to a maximum of $10,000 per distribution or $50,000 total annually. Platforms must be registered with the Commission, adhere to strict operational and cybersecurity standards, and pay an annual fee of at least $5,000 or 0.5% of revenue.