Less than 10 days after the government and private sponsors participated in a Bahamas Financial Services Board (BFSB) initiative to attract foreign investors, the effort is showing signs of paying off.
In late March, BFSB held the first of a series of programs called SPIN, Special Program for Intermediaries in Nassau. Some 10 carefully selected advisors to high net worth individuals from several countries were invited to Nassau for three days of meetings. They had lengthy, meaty sessions with everyone from the Prime Minister to civil servants and attorneys re-writing financial services legislation. They met with the governor of The Central Bank, the Minister of State for Financial Services & Investments, just about anyone whose position or decision-making ability could influence their decision to influence their clients to invest in The Bahamas and do business through the countryﾴs highly developed financial services sector.
While the advisors were being wined and dined and wooed, they were also being asked for their opinions — what the country should do to win their business and re-assert itself as the leading international financial centre in the region.
So significant was the visit considered that Prime Minister Perry Christie who had been scheduled to give brief opening remarks addressed the group for more than one hour, promising that, within the confines of international requirements and sound policy, nothing would ﾓhamper the growthﾔ of the nationﾴs second industry, financial services.
Putting a new SPIN on the countryﾴs second industry that must rise to the challenge of offering financial services in the new environment was a risk that some businesses were willing to take.
ﾓThe economy is down, it has been a tough year and we have a choice.,ﾔ said Larry Roberts, a director and partner at Bahamas Realty, one of the private businesses that helped sponsor the visit.ﾓWe can either resign ourselves to less than boom times, lay off staff, slash costs – or we can manage prudently while we go out and search for new business. Weﾴve taken the position that we are going to do the latter. The business is definitely there, particularly in high end, waterfront, gated properties with a lot of amenities.ﾔ
The SPIN program, Roberts said, was an opportunity to show off what the country has to offer. Bahamas Realty along with Old Fort Bay developers New Providence Development Co. Ltd. sponsored a presentation and cocktail reception at the just re-opened, redeveloped Old Fort Clubhouse, a study in historical restoration perfection. With a view through the palms and a 100-year-old silk cotton tree, over a balcony through to one of the prettiest stretches of beach in the hemisphere, Roberts talked of the 10 best reasons to buy real estate in the Bahamas. Private wealth managers looked – and they listened. They heard about political stability, year-round warmth, appreciation of land prices, proximity to the US and easy access to other destinations, modern telecommunications ranked on a par with the US and Canada by the CIA website. They heard the most important reason of all, tax advantages, in a country where there is no estate tax, no income tax and only minimal real property tax. They also heard the story of an incredible sale just earlier this year. Three beachfront lots in Old Fort that were once offered at $500,000 each sold for just under $3 million apiece. While thatﾴs a hard piece of business to match, Roberts said he was encouraged by the response.
ﾓWe had a call within a few days of the presentation and while it is a little early to say for sure, it looks like something very positive may be coming out of it,ﾔ Roberts said. ﾓWe applaud the BFSB for the imagination of the new SPIN on doing business in The Bahamas.ﾔ
ﾓSeeing is believing,ﾔ said Wendy Warren, BFSB Executive Director. ﾓThat is why we invited these key intermediaries to see for themselves why The Bahamas has become one of the worldﾴs leading financial centres with a continued commitment to private wealth management.ﾔ
The next SPIN session will focus on investment funds, again offering local businesses from fund administrators to law offices, accounting firms to banks the opportunity to interact with intermediaries, establish relationships and find out what has to be done to improve products offered and service provided.
By Diane Phillips
