Alysson Maynard-Gibson, Bahamas Minister of Financial Services and Investments, yesterday presented a 10-point National Strategy on Financial Services to the National Assembly.
Among the proposals in the Strategy is the introduction of a new fast-track investment hybrid entity which combines the features of an IBC (International Business Company) and a mutual fund. The SMART fund, or Specific Mandate Alternative Regulatory Test fund, says the Minister, will be a flexible vehicle licensed and supervised by the Securities Commission with limited, defined participants and detailed business plan offering a fast track licensing and limited direct regulation.
Other specific legislative proposals include the introduction of protected cell legislation, amendments to the Perpetuities Act, Purpose Trust legislation, Foundations legislation, legislation to encourage capital markets transactions, and a thorough overhaul of e-commerce legislation. In addition there will be a re-examination of KYC legislation, which has come under fire for being over-bureaucratic.
Underlining the importance of the financial services sector to the economy, the Minister introduced a strategy based on extensive consultations with practitioners.
‘First and foremost,’ said the Minister, ‘The Bahamas is a financial services centre, not an offshore financial centre, as some would describe us. The distinction is crucial.
‘As citizens of the world and as a country committed to honouring its international obligations, we shall engage in constructive dialogue with our partners and our competitors. Like the OECD countries, we are blue chip, well regulated and cooperative. Like them, we offer financial services. Like them we provide services to persons who wish to engage in prudent fiscal planning. We believe that as believers in competition they would wish to compete on a level playing field with the same rules applying to all players.
‘My government has already indicated that it will do nothing to put The Bahamas at a competitive disadvantage. Indeed, in a world where OECD countries are seeking to remove trade barriers, we welcome the opportunity to compete along side them on a level playing field. We want our citizens and all those within our boundaries and all of our competitors to understand that we look to the standards adhered to by London, New York, Singapore, Geneva and other “”onshore centres” where the majority of “offshore” business is conducted.’
Apart from new legislative initiatives, the 10-point programme includes the founding of a Financial Services Consultative Forum, which will ‘thoroughly examine financial sector issues as they relate to our international obligations, our national interest, market needs and changing market trends’.
Ms Maynard-Gibson also said that the Registrar General’s Department should complete full computerization of the Companies Registry by December, after which most, if not all transactions with that department should be possible over the internet.
