Madam Speaker,
I count myself as blessed to live in a country where a boy, who once ran the track roads barefoot and “shuttail” in Cat Island can become Prime Minister; where an educator and humanitarian from humble beginnings can go on to become the first female Deputy Prime Minister and now serve as Governor General, where young men and women know they can serve in the highest offices because they see people just like them occupying those spaces.
There are countless stories of Bahamians overcoming the odds to achieve greatness despite systems that made it difficult.
And while I applaud the many Bahamians who have overcome the odds, I can’t help but ask:
Is it not time for the odds to be in our favour?
The goal of this PLP administration is to build a country where the only limits placed on our people are the limits of their imagination and their ability.
I am fighting to make this future a reality for every boy and girl growing up in Cat Island, Rum Cay, and San Salvador, which I am honoured to represent.
And we are fighting, as an administration, to realize that future for every young person striving to achieve their dreams across our archipelago.
Today’s debate, while venturing into technical areas of financial services, has a role to play in creating opportunities for Bahamians. The Segregated Accounts Companies Bill 2025 modifies and creates a new product approach to the current Segregated Accounts Company. This Bill has been crafted with direct input from the financial services industry creating more flexible options for the use of the SAC with the intent of attracting further business to The Bahamas.
You see, for many local professionals, the financial services industry represents a powerful avenue for career advancement, which grants opportunities to Bahamians at the highest levels. It may be the most significant contributor to the middle class of The Bahamas over the last few generations.
Bahamians have served as Managing Directors, C-Level Executives, Presidents and Vice Presidents, as well as in high-level managerial and technical roles at leading financial services providers throughout our nation.
This is why, when we are abroad promoting our nation, we boast that we have arguably the highest levels of financial services talent per capita in the world – signalling to the world that when they choose to invest their money in The Bahamas, their financial future is in excellent, Bahamian hands.
Throughout the 2025–2026 fiscal year, as we roll out our plan to expand opportunities by promoting economic growth, stimulating job creation, and investing in training and education, the financial services industry, as the second pillar of our economy, must be an integral part of our plans.
Today, we will debate the Segregated Accounts Companies Bill 2025, as another step forward in strengthening our standing as a world-class financial services centre.
Madam Speaker,
When this administration assumed office in September 2021, we inherited a financial services sector teetering on the edge of international blacklisting, eventually falling off that edge when the EU blacklisted us as a result of missteps by our predecessors.
Fortunately, in September 2021, when the Bahamian people made the right choice at the ballot box, they also made the right choice to preserve and grow the Bahamian economy and secure our financial services industry.
Through decisive action and collaborative efforts, we have transformed our standing.
As a result, the European Union removed us from their blacklist.
And France followed suit.
We also became only the sixth country in the world to achieve “largely compliant” status with all 40 Financial Action Task Force Recommendations.
And the United Nations appointed our Attorney General to a seat on its committee to establish fair rules for all financial services jurisdiction.
These achievements reflect our commitment to excellence, our dedication to upholding the highest international standards, and our determination to uphold our position among the world’s most innovative jurisdictions.
Today, as we debate the Segregated Accounts Companies Bill 2025, we are adding on to a growing list of sweeping changes made in this House since 2021 to strengthen our global standing.
Madam Speaker,
Segregated Accounts Companies are, essentially, companies which are broken into multiple accounts, and each one of these accounts has separate assets and liabilities.
Segregated accounts maintain a degree of independence from one another, so assets in one account remain protected from claims against other accounts. This allows for a more convenient, efficient, and cost-effective way to manage risk and meet investment, wealth management, and business needs without establishing separate entities.
For example, investment funds managing multiple strategies, insurance companies segregating different risk profiles, companies issuing securities in more than one class or series, or companies seeking to compartmentalize certain aspects of their business all benefit from this arrangement.
In 2004, when the principal Act was first introduced, it met a wide array of needs for investment and wealth management in The Bahamas. However, that was 21 years ago.
A lot has changed in two decades. And the last Amendment to the Act was introduced all the way back in 2011, which brought us in compliance with OECD standards on the retention and reporting of accounting records.
Madam Speaker,
It was high time for us to make a major change to modernise this Act.
Financial services is a rapidly changing industry.
You can have a product that is dominant one year, and that product could be obsolete the very next year. We saw this last year when our once innovative ICON structures were no longer competitive due to changes in the Brazilian market. We moved quickly to amend our laws to allow ICONs to easily be converted into IBCs and exempted limited partnerships, which prevented any disruptions to the existing ICONs’ activities.
There are numerous examples of similar changes across the region and the globe where the nimble responses of our regulators and legislators allowed us to move from strength to strength.
Each time one of these major changes comes along, the prognosticators and doomsayers talk about how these changes will “deal a blow” to our financial services sector.
And each time they make these predictions, Bahamian excellence prevails.
We have proven that we are a regional leader for a reason.
In a rapid change environment, you don’t get to the top without developing the ability to adapt quickly.
Time and time again, we’ve demonstrated our capacity for effective innovation.
When it comes to financial services, we don’t play.
And that is why so many investors come to our shores.
We are the ideal place to live and invest.
As we are such a sought-after destination, we must ensure that, as we welcome these businesses and high-net-worth individuals to our shores, we also facilitate investments in ways that continue to expand opportunities for our people.
That is why changes like the Domestic Minimum Top Up Tax are so important. With the Top-Up Tax, we have introduced a nine-figure revenue opportunity for the government that will improve lives and enhance the government’s fiscal health without placing a burden on Bahamian families.
We have approached the Top-Up Tax in a manner that maintains compliance with OECD standards while keeping multinational corporations within our borders and reaping benefits for the Bahamian people.
This administration is constantly at work ensuring that we stay ahead of the curve, avoiding a repeat of the FNM’s failures that landed us on the blacklist.
Madam Speaker,
The Bill before us today allows us to further address the changing reality of financial services.
International financial services centres are becoming increasingly more sophisticated, flexible, and innovative.
Regional capital is in flux as regulatory reforms reshape the Latin American and Caribbean sector, and investors and high-net-worth individuals are seeking solutions that meet their needs.
In this time of great change, the Segregated Accounts Companies Bill 2025 positions the Bahamas to capture these opportunities.
This Bill introduces the concept of an Incorporated Segregated Accounts Company (or ISAC). This groundbreaking structure allows each segregated account to hold a separate legal identity. Unlike traditional SACs, ISACs grant each cell a separate incorporated status. This enhancement strengthens asset protection, simplifies lending arrangements, and aligns our offerings with the most innovative international structures.
For sophisticated investors and family offices, this provides unparalleled structural flexibility.
This Bill also allows for seamless continuation procedures. Companies incorporated under foreign Companies Acts or International Business Companies legislation can now redomicile to The Bahamas as either SACs or ISACs through a single process. There is no liquidation or complex processes required. We are facilitating a smooth transition for those who want to come to a premier jurisdiction.
This provision addresses a critical market need.
Many Latin American structures currently domiciled in other regional financial services centres face pressure to relocate due to changing tax treaties and regulatory scrutiny. Our continuation framework provides a convenient bridge and avoids disruptions, making it easy for new clients to migrate to The Bahamas.
Another key feature is the expanded eligibility for non-regulated entities. This Bill breaks new ground by enabling non-regulated companies governed by our Companies Act or International Business Companies Act to convert into SACs or ISACs.
Previously, segregated account structures primarily served regulated entities, such as investment funds and captive insurance companies. This expansion democratises access to this sophisticated risk management structure.
There are also now comprehensive demerger capabilities for segregated accounts. This Bill’s demerger provisions represent a huge leap in structural flexibility.
In fact, through this Bill, segregated accounts now have unprecedented mobility. ISACs can merge with other incorporated accounts, transfer between different ISACs, or continue as independent companies. ISACs themselves can merge or effectively demerge as their incorporated accounts spin off.
This flexibility serves practical commercial needs. When, for example, a segregated account requires independent financing, it can seamlessly transition to standalone status. When multiple accounts share operational synergies, they can consolidate.
Madam Speaker,
The days of being locked into rigid structures will come to an end, and we can now better meet the bespoke needs of the local and regional client base.
These provisions create a dynamic ecosystem in which structures can evolve in response to changing business needs. An incorporated account can move from one ISAC to another following an acquisition. And multiple ISACs can consolidate to prepare for major operational or business changes.
The architecture now adapts to commercial reality rather than forcing businesses into rigid structures.
Madam Speaker,
A critical component of this Bill is the fact that it addresses regulatory overlap and uncertainty. Our new regime will now clarify identification procedures for determining which regulator supervises any licensed, registered, or otherwise regulated company seeking SAC or ISAC status.
Under our current framework, questions sometimes arise when entities engage in multiple regulated activities. How do we know when the Securities Commission, Insurance Commission, or Central Bank takes precedence? And how do we avoid duplicative oversight?
We are establishing clear rules to identify the regulator, prevent gaps in supervision, and enable comprehensive oversight without bureaucratic redundancy.
This Bill also introduces enhanced governance standards.
Every SAC and ISAC must appoint a licensed Segregated Accounts Representative: a qualified professional who will ensure proper administration and regulatory compliance.
This requirement serves multiple purposes. It guarantees local presence and accountability. It creates professional opportunities for Bahamian service providers. It gives regulators a clear point of contact for supervisory matters. And, most importantly, it maintains standards that protect our international reputation.
Madam Speaker,
This Bill strengthens creditor protection through comprehensive notification requirements and solvency certifications. Directors must formally attest to solvency before major transactions, and creditors receive advance notice of structural changes that might affect their interests.
For new registrations, demergers, and continuations where liabilities exceed $1,000, the Bill mandates written creditor consent and notice published in the Gazette.
This approach protects legitimate creditor interests without imposing prohibitive transaction costs on routine operations.
Madam Speaker,
The 2011 amendments established five-year accounting records with $50,000 penalties for non-compliance.
The 2025 Bill preserves and expands these requirements, codifying comprehensive record-keeping obligations that meet OECD peer review standards.
Section 28 explicitly requires every SAC and ISAC to maintain fully itemised records for each segregated account and the general account. Records must enable accurate financial position determination at any time. They must support preparation of compliant financial statements. And they must satisfy regulatory requirements.
Non-compliance triggers serious consequences.
Beyond monetary penalties, persistent issues can result in the company being struck off the register, and directors may face personal liability for breaches.
This Bill makes it clear: The Bahamas takes transparency and compliance very seriously.
Madam Speaker,
This Segregated Accounts Companies Bill 2025 creates unprecedented opportunities for Bahamian professionals.
Segregated accounts representatives will command premium fees for their expertise. Corporate administrators will manage sophisticated international structures.
Lawyers will advise on complex reorganisations. Accountants will prepare multi-account financial statements. And insurance professionals will advise on services to meet complex client needs.
We are, indeed, expanding opportunities for local professionals.
And, thanks to past efforts, we can offer an enhanced experience for segregated accounts companies operating within our borders.
This Bill arrives against the backdrop of our digital transformation of corporate services. The Corporate Administrative Registry Service Portal eliminates paper-based processes.
For SACs and ISACs, digital infrastructure proves particularly valuable. Multi-account structures generate complex documentation requirements and segregated accounting demands sophisticated systems. Our new digital platform handles these challenges efficiently and effectively.
This technological edge will enhance our competitive advantage.
By offering real-time updates and time-sensitive filings, we are providing the modern experience that international clients demand in 2025.
Madam Speaker,
This Bill represents the culmination of years of effort to modernise our financial services framework – of which it it is a small but important element. I thank the Attorney General and his Office; our regulators at the Insurance Commission, the Securities Commission, and the Central Bank; the Minister of Economic Affairs and the Financial Services Unit; the Bahamas Financial Services Board; and our many private sector stakeholders for their support in advancing our innovative financial services agenda.
Moving forward, we will need continued collaboration across governmental agencies and institutions, and between government and the private sector, to sustain our commitment to excellence.
Based on our track record and the tremendous amount of talent brimming in our nation, I am confident that bright days are ahead for financial services in The Bahamas.
Together, we will build a financial services sector that showcases Bahamian excellence, fosters prosperity for our people, and cements our status as a leader in financial services innovation.
Our journey from blacklisting to global leadership proves what can be achieved through focused effort, efficient execution, and effective collaboration.
This Bill advances that journey and paves the way for greater success for years to come.
Thank you, Madam Speaker.