The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Securities Commission’s executive director, Dave Smith, has been forced out of his post amid “industry concerns” about how the capital markets supervisor is approaching its regulatory mandate.

Tonya Bastian-Galanis, the Securities Commission’s chairman, confirmed to Tribune Business that Mr Smith, its top senior management executive, was no longer in his post as of yesterday.

There is nothing to suggest Mr Smith did anything wrong, but this newspaper understands his departure came following a “unanimous” Board resolution. He left after being called to a meeting with minister of state for finance, Michael Halkitis, late on Wednesday afternoon.

Mrs Bastian-Galanis hinted to Tribune Business that Mr Smith’s departure was not a voluntary one, saying: “I can confirm that as of today, he’s no longer executive director at the Securities Commission.

“I can’t say how Mr Smith was informed of anything, or whether Mr Smith decided to leave. I suspect it’s not the latter. I was formally notified last night he will not be at the Commission.”

Mrs Bastian-Galanis and the Securities Commission’s deputy chairman, Jerry Butler, were yesterday meeting staff to inform them of developments and provide reassurance in the wake of Mr Smith’s departure.

His leaving the Securities Commission comes as little surprise, though, with numerous financial services executives having complained to Tribune Business over the past year about Mr Smith’s approach to carrying out the regulator’s mandate.

The former executive director, based on the remarks made to this newspaper, appeared to have ‘ruffled feathers’ in the sector by a tough, no-nonsense approach to regulation enforcement.

Mr Smith’s ‘hardline’ stance was epitomised when sources told this newspaper he was requiring Super Value, a private company, and its owner, Rupert Roberts, to prove that it had paid a fair price - and made full disclosure - to employees that it had repurchased shares from many years ago.

Such an approach is understood to have made Mr Smith ‘enemies’ in the financial services industry, with some sources yesterday suggesting his inflexibility when it came to regulation had seen some businesses leave the Bahamas.

That could not be proven yesterday, but Mrs Bastian-Galanis acknowledged industry concerns over the Securities Commission’s regulatory approach - although she did not refer to Mr Smith by name.

“It would be coy to pretend that it’s untrue,” she responded, when questioned by Tribune Business. “We’re aware of the industry’s concerns regarding the approach by some Commission staff.

“That is a matter that will be addressed by the Commission. Restoring industry confidence in the Commission, treating stakeholders in a respectful manner, is what we as regulators have committed ourselves to, and is in the best interests of all.

“The Commission looks forward to engaging industry stakeholders in a manner that is best for the industry, business, and business development.”

Mr Smith was appointed to his post under the former Ingraham administration, and Tribune Business has repeatedly been informed over the last year about “tensions” between himself and the new Christie government-appointed Board. This may also have contributed to his leaving.

Mr Smith could not be reached for comment before press time, but Mrs Bastian-Galanis last night said his departure would “absolutely not” impact the Securities Commission’s ability to regulate or international perceptions of the Bahamas.

One source, who said he spoke to Mr Smith on Wednesday to arrange a meeting with him, told Tribune Business of his departure: “I’m shocked. I don’t know why. It’s too bad.”

Aliya Allen, the Bahamas Financial Services Board’s (BFSB) chief executive and executive director, said: “BFSB thanks the former executive director for his contributions and wishes him well in his future endeavours.

“We look forward to working with the new executive director, and to continuing our cooperative relationship with the Commission for the benefit of the industry and the Bahamas at large.”