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Advertisers Dupuch & Turnquest & Co.
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Financial Services Board promotes government-private sector collaboration in the financial services sector
BIA is the government agency that is responsible for investment policy formulation and the international and domestic promotion of investment opportunities in The Bahamas. It also reviews and evaluates investment proposals.
At one time it also dealt with the financial services industry; however, with the influx of international investments that the BIA had to contend with, a decision was made to create a new organization that would deal strictly with financial services.
In 1994, the Financial Services Sector Advisory Committee, a seven-member committee consisting of lawyers, bankers, accountants and investment specialists under the direction of Gregory Bethel and Ian Fair, chairman of MeesPierson (Bahamas) Limited, was formed.
"Our initial work was to advise the government about the financial services industry, get The Bahamas up to date on legislation needed to make it current and competitive with the competition and to improve the perception of The Bahamas internationally, telling people what the Bahamas is all about today," said Fair.
The FSSAC made several promotional trips with the government to encourage investment in the financial-services sector. "The crowning achievement of the FSSAC was bringing together the entities within the private sector and increasing the dialogue between the private and pubic sector," noted Fair.
The BFSB is now a collective collaboration between the financial services industry and the government to showcase what the country has to offer in the sector. BSFB represents and promotes the development of all sectors of the industry, including banking, private banking, and trust services, mutual funds, capital markets, investment advisory services, accounting and legal services insurance and corporate and shipping registry.
Since its formation, it has acted as a liaison between the private sector and the government, listening to what the private sector needs regarding products and services and conveying those needs to the government to reform or create the legislation necessary.
"Our goal is to execute a number of programs which will result in the Bahamas being recognized as the leading international financial services destination," said Barry Malcom, executive director of BSFB.
Malcom indicated that in six to seven years, the industry might employ twice as many people and contribute almost twice as much to the gross domestic product as it does now. While financial services now contributes 15 percent to GDP, Malcom foresees it contributing 25 percent to GDP within seven years.
"To do this we have to take the rights steps to develop our people, to develop our infrastructure and to stay at the leading edge of what the market wants in terms of products, services.”
The BSFB has been responsible for helping to reform and /or enact several pieces of financial services legislation such as The Money Laundering (Proceeds of Crime) Amendment Act, passage of the Mutual Funds Act, The New Trustee Act, The Securities Industry Act, The Protection of Depositors Act and others.
BFSB has also been active in helping to get the Bahamas Securities Exchange (BISX) off the ground.
The Securities Board Act, 1994, established the structure and functions of the Securities Commission on matters dealing with securities and capital markets, including mutual funds. The Securities Industry Act of 1999 authorized the Securities Commission to review and approve an application submitted by a company for registration as a securities exchange, paving the way for the creation of BISX.
BSFB has been active in this process by helping to define the needed legislation that will accompany the opening of BISX and encouraging the government to pass the legislation needed for e-commerce.
Malcom indicated that BISX would have a profound effect on The Bahamas financial services industry. With the advent of BISX, The Bahamas will be handling increased e-commerce related transactions.
"E-commerce is an evolving area of service and our most important consideration is to provide a discreet, clear legal structure in which to conduct e-commerce activities," he said.
"There is very close collaboration between the government and the private sector and the government has been quick to respond to the industry needs," said Malcom. "We are looking at having e-commerce legislation on our books before the middle of the year."
"We will have to decide where we want to go in the financial services industry, define a strategy to get there and make a national commitment to that strategy," said Malcom. The BFSB will continue to play an active part in the future development of the financial services industry.
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Table of Contents The Bahamas: An established tourism and tax-free financial services center experiences a renaissance |
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Several years ago, the government of the Bahamas saw the need to focus on investment and financial services. The Bahamas Investment Authority, under the umbrella of the Office of the Prime Minister, was established in early 1993 to cut red tape and offer one-stop shopping for international investors.
After its two-year term, the FSSAC recommended the government create a Financial Services Board that would establish a more permanent focal point for the government and the private sector to come together to promote, inform and gather information in a consistent, ongoing, institutionalized manner. The government embraced the idea and in April 1998, the Bahamas Financial Services Board was launched.