The Tribune

The Securities Commission has urged attorneys to segregate their law practice from their financial and corporate services provider (FCSP) business, thus eliminating any legal privilege concerns.

Such concerns were outlined in a constitutional-related legal action filed in 2001, alleging that provisions of the Financial Services Measures, which included the Financial and Corporate Service Providers Act, violated constitutional rights.

The Financial and Corporate Service Providers Ac authorises the Inspector to examine all FCSP licensees, which some attorneys were concerned could cause a breach of lawyer-client confidentiality.

“There has been no movement [on the constitutional action] for some time, and the Inspector will be guided by its regulatory obligation under the Law to carry out examinations,” said Dave Smith, executive director of the Securities Commission of rhe Bahamas. The Commission was appointed as FCSP inspector in January 2008.

His comments were made at a presentation to attorneys at the Bar Association’s Offices on 13 February, 2013. The meeting was a follow-up to a courtesy call paid on the Inspector by representatives of the Bar Association and the Attorney General’s Office on January 15, 2013, when the constitutional challenge and other matters were discussed during.

Attorneys were told that FCSPs are expected to produce full and complete records when required by the Inspector. The Inspector seeks to review only the records of the FCSP during on-site examinations, so concerns over legal privilege should be mitigated if those records are separated from those of the law practice.

In addition, Inspector representatives gave a brief overview of the on-site examination process, which focuses on the licensee’s Anti-Money Laundering programmes, disaster readiness, and the fitness and propriety of persons involved in the business.

Mr Smith encouraged attendees to complete the risk survey issued to FCSPs in September 2012. The survey will help the Inspector to determine the depth of oversight appropriate for each FCSP business, based on its operations, inherent risk and regulatory expectations.

He added that he supports Bar Association president, Ruth Bowe-Darville’s, proposal of a practicing certificate for attorneys, as it may help to allay some of the concerns of the Inspector.

Representing the Inspector at the February visit the to the Bar Association offices were Mr Smith; Gawaine Ward, manager, enforcement department; Kaylisa Adderley, assistant manager, market surveillance department; Mechelle Martinborough, legal counsel; Omara Bingham, senior legal officer; and Robertha Davis, officer, inspections department.