Modernizing The Segregated Accounts Framework: Key Reforms Under The Segregated Accounts Companies Act, 2025

• Published date: 16 December 2025
• Subject Matter: Finance and Banking, Corporate/Commercial Law, Financial Services, Corporate and Company Law
• Law Firm: Bahamas Financial Services Board
• Author: Tonesa Munnings

INTRODUCTION

The Segregated Accounts Companies Act, 2025 represents a landmark reform

in The Bahamas' corporate law landscape. It replaces the Segregated Accounts Companies Act, 2004 with a modernized, comprehensive framework designed to expand the applicability, flexibility, and global competitiveness of segregated account structures.

By introducing new categories of eligible entities, strengthening regulatory oversight, and, most significantly, establishing the Incorporated Segregated Accounts Company (ISAC) regime, the 2025 Act positions The Bahamas among leading jurisdictions offering advanced corporate structuring options. The legislation also introduces procedural modernization, expanded insolvency safeguards, and dynamic mechanisms for demergers, mergers, and continuations, ensuring that Bahamian entities can evolve seamlessly in an increasingly complex financial and commercial environment.

The following provides a structured overview of the key innovations and implications of the 2025 Act.

EXPANDED ELIGIBILITY FOR SEGREGATED ACCOUNTS COMPANY REGISTRATION

A significant advancement introduced by the Segregated Accounts Companies Act, 2025 is the expansion of the types of entities eligible to register as Segregated Accounts Companies (SACs).

Previously, the 2004 Act limited eligibility largely to entities licensed under the Investment Funds Act, the Insurance Act, or subsidiaries of banks and trust companies regulated by the Central Bank of The Bahamas. This narrow scope confined the use of the SAC structure primarily to traditional financial institutions.

The 2025 Act broadens that framework considerably. Section 3(2) now extends eligibility to companies registered or licensed under the Securities Industry Act, the Carbon Credit Trading Act, and the Digital Assets and Registered Exchanges (DARE) Act. It also opens the door for unregulated companies to register as SACs, subject to the Registrar's approval and satisfaction of prescribed compliance standards. This more inclusive approach reflects The Bahamas' ongoing commitment to innovation, diversification, and adaptability.

FROM CONSULTATION TO CONSENT: STRENGTHENING REGULATORY CONTROL

The Segregated Accounts Companies Act, 2025 strengthens the role of financial regulators in the SAC registration process. Under the previous regime, applicants were only required to consult with their primary regulator before registration. The new Act replaces that approach with a mandatory consent framework...