Holding Restrictions - Investment Funds - Bahamas
There is no statutory nominee concept under the laws of Bahamas for investment funds. CBL as the nominee will be recognised as the legal account holder of the fund units. Beneficial interest of CBL’s customers may be recognised in practice depending on provisions of the fund documents.
Customers are advised to consult with appropriate counsel before holding fund units/shares through CBL in Bahamas. By holding such securities, CBL customers are deemed to be aware of any law, regulation, rules and policies applicable thereto.
Restrictions on customers
Bahamian customers and ultimate beneficial owners are not allowed to hold Bahamian funds through CBL due to exchange control restrictions. It is the responsibility of the customer/beneficial owners to ensure compliance with the restriction.
Certain funds may also impose specific restrictions on investor domicile. Customers must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.
Restrictions on settlement
There is no Bahamian dollar (BSD) as denomination or settlement currency as it is not an eligible currency in CBL. Certain funds may impose specific settlement/transfer restrictions. Customers must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.
The information contained in the Holding Restrictions is based on the legal opinion obtained by CBL that was issued on 2 December 2020. CBL believes the information to be correct as of that date but disclaims any responsibility as to the accuracy and completeness of the information after that date. In the case of discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Holding Restrictions do not constitute legal advice and customers should seek advice from independent professional counsel.
Customers are responsible for ensuring compliance with the disclosure requirements and agree to indemnify and hold harmless CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.