The Bahamian parliament intends to further review the provisions of the International Business Companies Act when it next meets, Minister of Financial Services and Investments, Allyson Maynard Gibson, told investment banking representatives this week.
The number of firms relocating from the Bahamas to other jurisdictions in the region is said to be causing the government some concern. For this reason, the government-appointed Financial Services Consultative Forum is expected to have a report ready for parliamentary debate in the near future. In addition to this, by June of this year, the administration hopes to table a Protected Cell Bill, a Foundations Bill, a Perpetuities Bill, a Purpose Trust Bill, and an amendment to the Financial and Corporate Providers Act.
It is also anticipated that more efficient Know Your Customer regulations will be recommended.
Warning the Bahamas Institute of Financial Services that tough times may lay ahead, Maynard-Gibson told the bankers: “We must re-tool, re-train, and re-invent our products and ourselves. We must be competitive both in price and services. We must recapture the charm and diligent work ethic for which we were once known.”
Other measures set to appear on the legislative agenda, according to the minister, include laws concerning the expansion of international private banking, employee stock option and pension plans, capital market transactions and structures for cross border multinational transactions.
Ms Maynard-Gibson acknowledged that the jurisdiction has fallen behind in terms of competitiveness, although she stressed that the territory’s strategic position, favourable tax environment, stable democracy and highly skilled workforce are significant advantages.
As an indication of the importance of the financial services sector to the Bahamas, recent reports have stated that it accounts for about 20% of the nation’s GDP, and employs over 13,000 Bahamians.
By Amanda Banks, Tax-News.com
