The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Securities Commission is petitioning the Supreme Court to place a Bahamian broker/dealer into compulsory liquidation, and appoint a provisional liquidator to wind it up.

Christina Rolle, its executive director, in a November 30, 2016, letter informed all Tillerman Securities’ clients and custodians that the regulator has already obtained a Supreme Court Order freezing the company’s entire business.

Ms Rolle does not give any explanation for the Securities Commission’s actions, but its decision to press for the broker/dealer’s “compulsory liquidation” - and the appointment of a provisional liquidator - indicates that serious regulatory concerns and issues are at stake.

“This letter serves as notification that the Securities Commission of the Bahamas filed a petition in the Supreme Court of the Commonwealth of the Bahamas on November 7, 2016, for the compulsory liquidation of Tillerman Securities under the Companies Act 1992, and under the provisions of the Securities Industry Act 2011,” Ms Rolle wrote.

“Justice Indra Charles granted a Preservation Order freezing all account balances of clients, depositors and customers of Tillerman Securities pending further Order of the Supreme Court.”

A copy of the Preservation Order, attached to the letter, shows that Justice Charles and the Supreme Court have completely frozen, or shut down, Tillerman Securities business to preserve the ‘status quo’ until its fate is determined by the hearing of the winding-up petition.

Tillerman Securities, which is based at One George Street in Nassau, and all its directors and employees, are prevented from “dealing in any way whatsoever with clients’ assets” - including transferring, pledging or charging them.

They cannot even act on client instructions until either the winding-up petition is heard or the Supreme Court makes further Order.

Ms Rolle further informed Tillerman Securities’ clients: “Please be advised that the Commission has filed an application for the appointment of a provisional liquidator, which is scheduled for hearing on January 23, 2017.”

Tribune Business understands that Intelisys (Bahamas) accountant and partner, Ed Rahming, who is one of the three Baha Mar liquidators, has been tapped as provisional liquidator for Tillerman Securities.

Tribune Business attempts to contact the broker/dealer last night proved fruitless, as its phone number was not in service, but this newspaper understands that it has filed legal papers appealing against the Securities Commission’s decision to cancel its Class Two broker/dealer licence.

Its arguments will also be heard before the Supreme Court on January 23, 2017, together with the Securities Commission’s winding-up petition and push for Mr Rahming’s appointment.

Tillerman Securities is a standalone, Bahamas-based broker/dealer, with client assets under administration understood to be in the low ‘eight figures’ - relatively small by global standards, but a significant sum nonetheless.