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Tier 3 · High risk / Flexible

SCBSecurities Commission of The Bahamas

SCB Bahamas: Caribbean Securities Supervisor With Tier-3 Protections

The Securities Commission of The Bahamas regulates securities firms operating in or from the Bahamas. It is a real regulator with a developed framework, but retail CFD protections are materially lighter than tier-1.

Read the regulator's own register: Specific protections — compensation limits, leverage caps, eligible claim definitions — change. Always confirm the current rules on the SCB's official public register before funding.

Country
  • Bahamas
Region
  • Offshore (Caribbean)
Compensation
  • None
Common products
  • Securities & derivatives dealing
  • Broker-dealer
Strengths
  • Real regulator with an established framework and public register
  • Common-law jurisdiction with English used in legal and regulatory practice
  • Larger professional services ecosystem than most offshore centres
  • Ongoing supervisory engagement with licensed firms
Limitations
  • No statutory investor compensation scheme for retail clients
  • Lower capital floors and lighter retail conduct rules than tier-1
  • Retail leverage and marketing rules less restrictive than ESMA/ASIC

What the SCB is

The Securities Commission of The Bahamas is the integrated regulator for the securities industry in the Bahamas, including broker-dealers, investment advisers, and asset managers. The Bahamas has positioned itself as an international financial centre, and the SCB is the body that licenses and supervises securities activity there.

Who and what it regulates

The SCB licenses broker-dealers in securities and a range of investment business. Retail CFD brokers holding an SCB licence typically use it for cross-border client servicing in regions outside their primary regulator's reach. The framework exists with published rules and enforcement action; the supervisory intensity is materially lighter than in tier-1 jurisdictions.

Compensation scheme

There is no statutory investor compensation scheme under SCB oversight for retail brokerage clients. If an SCB-regulated firm fails, client recourse runs through the client agreement, the local courts, and the SCB's enforcement powers. There is no equivalent to FSCS, ICF, or AFCA coverage.

Leverage and product rules

SCB-regulated entities commonly offer leverage well in excess of tier-1 caps. There is no ESMA-style product intervention order. Marketing inducements and bonus structures that would be restricted under tier-1 regimes are typically available. The flexibility is real; the absent safety net is the price.

How to verify a licence

The SCB publishes a register of licensed broker-dealers. Search the firm name, confirm an active licence in the relevant category, and cross-check the licence number back to the broker. Identify which regulator has primary jurisdiction over your specific account before funding.

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Last updated 2026-09-14. This profile describes the regime as of the update date and is general information, not legal or investment advice. The tier label is our own classification based on the factors above, not an official ranking. Specific protections, compensation limits and leverage rules change — verify on the regulator's own register before acting on it.