By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Securities Commission is working with the Government to develop legislation that cracks down on “payday lenders” offering loans at predatory interest rates, a Cabinet minister disclosed yesterday.

“The Government has asked them to look at the area of these non-bank money lenders and come back to us with some suggestions," disclosed Michael Halkitis, minister of economic affairs, in leading-off the 2025-2026 Budget debate in the Senate.

"Many years ago, those payday lenders in the US, [we] didn't have them here. Now [they] might go by a different name, but essentially they're payday lenders, and unfortunately, many Bahamians fell into that net where they're borrowing at extremely high interest rates with very, very little prospect of ever coming out,” said Mr Halkitis.

“We are working with the Securities Commission to be exploring the implementation of a centralised, one-stop shop to streamline approvals and improve co-ordination across our financial services regulatory agencies.

"And so the idea is that individuals who want to come, set up a financial services company in The Bahamas, should have a one-stop shop where they can be introduced to service providers, products, licensing and, as well, the approval process, and to identify opportunities for improvement and streamlining.”

Mr Halkitis added that while the initiative is “ambitious”, the goal is for investors to get approvals quickly due to the collaboration between regulators.

“It's a very ambitious programme, but the idea is to have this one-stop shop set up where they really streamline their operations and are able to get applications in and approved in a quick manner by making sure we have more regulators really co-ordinate activity. You'll hear more about it as we develop it," he said.

"We think it's an opportunity for us to really improve our competitiveness and, as part of our broader strategy, to diversify and deepen financial services." Mr Halkitis said his ministry is also working with the Securities Commission and the Bahamas Financial Services Board (BFSB) to create a family office framework and attract more high value clientele.

“[We are] working closely with the Securities Commission and the BFSB to establish a framework for family offices, which will encourage more activity in this high value space and generate spin off opportunities for Bahamian professionals. It's a real thing, when we talk about this segment of the market where we look to more and more Bahamian entrepreneurs with their financial services companies providing this service,” said Mr Halkitis.

For the insurance sector, Mr Halkitis said the Insurance Commission has been working to enhance its regulatory framework and will be putting draft proposals to the industry for consultation Insurance Commission continues to support the growth of the captive insurance market and sees an opportunity to attract more small and medium-sized enterprises by streamlining the application process.

“The Insurance Commission of the Bahamas continues to support the growth of the captive insurance market, which has seen steady expansion over the past decade, and efforts are focused on streamlining application processes and maintaining a robust regulatory framework that meets international standards, thereby attracting small to medium-sized enterprises seeking cost effective risk management solutions,” said Mr Halkitis. “And so, what they think is perhaps the real big ones, they are entrenched. There's an opportunity for small to medium-sized enterprises to domicile in the Bahamas.”