NASSAU, BAHAMAS — A Supreme Court judge has ruled that the Securities Commission of The Bahamas acted within its statutory remit when it exercised its powers to temporarily suspend a controversial Bahamian broker/dealer’s registration for five days back in 2019, finding that the regulator’s actions were not “irrational, oppressive or unreasonable”.
The Securities Commission had suspended registration of Guy Gentile’s SASL Swiss America Securities, which he renamed Mintbroker International for five days in September 2019. Gentile subsequently filed an ex parte judicial review action in the Supreme Court, challenging the regulator’s decision.
According to affidavits filed by the regulator, there were several breaches pre- and post-inspections and examinations, along with other acts of non-compliance. The regulator asserted that Swiss America Securities Ltd/Mintbroker — whose offices were formerly situated at Elizabeth on Bay Plaza, Suite 17, Bay Street — did not make full and frank disclosure as was required.
Gentile and Swiss America Securities previously agreed to a $120,000 settlement with the regulator back in 2018 after failings were identified in his firm’s customer due diligence processes and record-keeping procedures.
Justice Ruth Bowe-Darville dismissed the judicial review action and ruled that the Commission’s actions were “within its statutory remit and that its actions were not arbitrary, oppressive, irrational or unreasonable”.
The Commission also noted in a statement yesterday that it has, since March 5, 2020, commenced the winding up of the company in the Supreme Court — a matter that is still ongoing.
It further noted that in light of the Supreme Court ruling, it intends to pursue any attendant regulatory matters.
