The new Chief Executive Officer and Executive Director of the Bahamas Financial Services Board, Wendy C. Warren, will be the Guest Speaker at the March 7 Luncheon Meeting of the American Men’s Club. The luncheon will be held in The Rotisserie, Sheraton Grand Hotel on Paradise Island, starting with refreshments at 12:00 noon, followed by lunch at 12:30 p.m. For reservations, contact Tom Kessler at 328-2091.
The Role Of BFSB In The 21st Century It is no longer business as usual. Not only do the old rules no longer apply, but also the time that “new environments” are introduced is greatly diminished. The Bahamas has been the subject of three supranational initiatives: the OECD and its harmful tax initiative, the FATF’s review of the level of co-operation afforded by nations in their anti-money laundering efforts, and the FSF’s evaluation of the regulatory systems of Offshore Financial Centers. The legislation that we as an industry are currently digesting was primarily in response to the FATF and FSF initiatives. The various Acts and related regulations seek to ensure that The Bahamas has in place a comprehensive system by which it can (1) prevent the commission or facilitation of money laundering through its financial systems (2) detect and construct an audit trail where money laundering may occur and, (3) assist other nations in their counter money laundering efforts. This would be achieved primarily through the consistent application by the industry to an agreed upon standard of the “Know Your Customer” policy, and increased reporting requirements. It is these reporting requirements that have brought about a review of what was previously considered a cornerstone of our industry – Bank Secrecy. Globalization and the advancement in technology have caused nations to become interdependent and exposed to weaknesses in the regulatory oversight and counter money laundering procedures of other nations. Consequently, the mandate of FATF and FSF cannot be ignored or wished away on the basis of our independence IF we wish to be a serious contender in the provision of international services. The need for transparency in the global market place has promulgated this key paradigm shift in the Bahamas: a shift from Secrecy to Confidentiality. How does our jurisdiction survive in this new paradigm? I believe our success will depend on our ability as a jurisdiction to compete in terms of the quality of our services and the strength and sustainability of our products. This level of competition must not only exist at companies level but at a jurisdiction or “Bahamas Inc” level. Our ability to compete as a jurisdiction is the focus of the Bahamas Financial Services Board. BFSB’s mandate is to develop the international financial services in the Bahamas by acting as a catalyst to cause all industry participants to lever their resources to first develop and, secondly, promote the Bahamas. Development of the Industry One of the most important decisions made by our potential clients and partners is that of “jurisdiction selection”. Specific initiatives have been formulated by the Bahamas Financial Services Board to draw on the collective intelligence of our stakeholders. Certain initiatives undertaken by the Bahamas Financial Services Board directly in response to the new environment have included the establishment of the Strategic Development and the Standards & Practices Committees. These committees are responsible for developing products and formulating international best practice standards. Following on from this, the Bahamas Financial Services Board will hold Industry Roundtables to provoke further thought and consensus on key strategies, services and standards for our industry. The conclusion of these roundtables will be the formulation by BFSB of a mid to long-term strategy for “Bahamas Inc.” Of utmost importance in the development of our jurisdiction is the strengthening of the human resources of the Bahamas. While our location, improvements being made in our telecommunication infrastructure, and the strengthening of our legislative framework are critical to our success as a country, the full deployment of our human resources has the potential to give the Bahamas a distinct and definitive competitive advantage. We are all proud that the Bahamas has a well-educated population comprised of some 600 lawyers, 350 accountants and a growing number of chartered financial analysts. However, I would contend that we must rapidly tool and, in some cases, retool all of our human resources to understand the new environment and to compete on an international level in the 21st century. This mandate crosses all boundaries and calls for close partnership of the Bahamas Financial Services Board, industry associations, corporate citizens and, most importantly, each participant of the industry. We must take ownership for our own destiny by taking deliberate steps; these steps should result in the embodiment by all participants of the attributes necessary to compete in the global market place. Promotion As we make strides in truly becoming “the” jurisdiction of choice, the more fruitful our promotion of international services will become. With continued focus on our commitment to providing service levels that compete with any jurisdiction and the provision of international services in a well-regulated environment, The Bahamas has the opportunity to reassert itself as a leader in international financial services. The Bahamas Financial Services Board’s programs will focus on bringing the Gatekeepers to the Bahamas through conferences and other programs so that they can become comfortable that The Bahamas is serious about the business of international services and that we are indeed prepared to conduct business in an environment of transparency. Notwithstanding our disappointment or even our disagreement that the Bahamas was blacklisted, we must focus on the how we can use this watershed in our history to show the ability of the Bahamian people and Bahamian based enterprise to adapt, to convert this threat into an opportunity, an opportunity to develop sustainable products and provide responsive and expert services to an increasingly discriminating international clientele. (Extract from a Presentation by BFSB CEO/Executive Director Wendy C. Warren at an industry briefing sponsored by McKinney, Bancroft & Hughes)
The Bahamas Financial Services Board was inaugurated in April 1998 and officially opened its doors in July of the same year. During the last 2 1/2 years of operation, the Board has been successful in elevating the profile and enhancing the perception of The Bahamas as a leading international financial services centre – the “jurisdiction of choice”. BFSB stands proud in its achievements to date, with all of its stated objectives firmly met: (i) establishing The Bahamas “brand” in the financial services community (ii) developing and coordinating promotional strategies and programs of the Bahamas financial services sector (iii) informing and educating service professionals and intermediaries globally on services offered by The Bahamas (iv) positioning The Bahamas as a premier “jurisdiction of choice” (v) opening and nurturing communication lines with key trade and business media – globally and domestically (vi) creating awareness and support domestically for the industry In March 1999, BFSB began production of a quarterly newsletter, BFSB News Briefs, and in March 2000 launched its industry www site. Both represent important components of a coordinated marketing plan. Increasing globalisation of business, the emergence of new liberalised trading arrangements and vast changes in communication and information technology have dramatically altered the international business environment. These changes provide the financial services sector with tremendous opportunities and new sets of challenges. The Government and the private sector of The Bahamas have embraced a common vision and will continue to work closely together to achieve clearly defined goals for the development of the financial services industry. The Bahamas “brand” – already firmly established – must be entrenched in the international markets. It must be clearly presented and understood in order to maintain a leadership position. Several global issues challenge the financial services industry, including OECD, FATF and FSF initiatives, European Union Tax Harmonisation, Money Laundering, and Client Confidentiality. It is essential that efforts be stepped up to meet increased competitive demands, and to maintain established international standards of this important industry. The official launch of the Bahamas International Securities Exchange (BISX), for which BFSB was the Executing Agency, already is enhancing the profile of The Bahamas’ financial services industry. BISX marketing efforts – as well as that of the Government – will be leveraged to build a cohesive, effective programme to promote the financial services sector. BFSB Membership BFSB has been able to create – and maintain – a strong membership base. Incorporating all segments of the financial services industry, membership expanded by 35% in the first two years of operation, and remained steady throughout 2000. Serious prospects already targetted would indicate that BFSB will be able to maintain steady membership growth in the years ahead. Benefits and Privileges of Membership:- -Recognition as a committed contributor to the growth and development of the industry -Recognition as a significant corporate entity within The Bahamas’ financial services industry -Opportunity to participate in defining the focus and issues of importance to the industry -Unique opportunities to promote your company and services internationally -Expansion of international market contacts for your business services -Information about your company on the international database and web site of The Bahamas Financial Services Industry -Modest individual cost of support, major industry benefits -Access to collateral material (See BFSB News Article of 1/19 on “Year in Review” for a comprehensive report on achievements during the year 2000. Additional membership information, including an application form, can be accessed under About BFSB on our home page)
Barry J. Malcolm CEO & Executive Director Bahamas Financial Services Board Year-end Report To Members – 2000 Overview During 2000, The Bahamas Financial Services Board, in its third year of operation, continued the programs defined by its mandate to: -build the ‘Bahamas Brand’ within the financial services industry -promote The Bahamas as ‘The Financial Centre of Choice’ -develop strategies for continuing development as a competitive centre -inform and sustain key markets and stakeholders -channel international trade, business and financial news publications -cultivate domestic understanding and support for the industry The business plan executed by BFSB, in discharge of this mandate during the year, included a multi-faceted program of activities in areas such as: -membership services -website development -publications and products -promotion tours -conference sponsorship and presentations -international and domestic advertising -media relations / editorial placements -development of domestic support -strategic development -government relations -media support to BISX -Annual General Meeting At the beginning of the year, our business plan anticipated that resources of BFSB would be focused primarily on areas of activity such as promotion and direct marketing of The Bahamas. By mid-year, and throughout the balance of the year, our efforts were substantially re-focused to strategic development and government liaison initiatives, as the industry sought to craft for itself and influence legislative initiatives in responding to OECD, FATF, FSF and other international challenges. Membership Services BFSB, throughout the year, maintained the support of all constituencies and continued to provide a broad range of services to its membership. Considering the changed agenda for 2000, a significant service was the commitment of substantial resources to continual dissemination of information to member companies on current issues of importance, such as results of Government briefings and pronouncements, drafts of new legislation, market data from external sources, and other matters potentially affecting the industry. Our records confirm that members received an average of two direct mailings per month by fax and/or e-mail from the offices of BFSB, with a larger number understandably being received during the latter half of the year. For the year net membership was sustained at 152. Several smaller organizations, particularly law firms, opted not to continue as members; efforts are ongoing to encourage the return of such members. The actual number of BFSB members remained fairly constant, as a result of the enrollment of several new financial services organizations. Total membership at December 31st, 2000 is provided at Attachment A. During the year representation on BFSB’s Board of Directors expanded to include the participation of all major associations of professionals then established within the financial services industry. With an equal voice on all policy matters affecting the strategic direction of BFSB, the following organizations were directly represented on the Board of Directors: -Association of Clearing Banks -Association of International Bank & Trust Companies -Bahamas Association of Health & Life Insurers -Bahamas Bar Association -Bahamas General Insurance Association -Bahamas Institute of Chartered Accountants -Bahamas Association of Mutual Fund Administrators -Bahamas Society of Financial Analysts -Society of Trust & Estate Practitioners Other membership services included: the presentation, by name, of members in ‘good standing’ in BFSB-funded international and domestic advertisements; substantial internet exposure of member firms through the BFSB web-site; business referrals by BFSB from on-line and direct market enquiries; the clearing and sharing of information important to the industry; co-ordination of several industry-wide and smaller industry and/or government briefings; and ongoing presentation of current information on industry sectors and individual member companies through newsletters, the website and other media outlets. A special benefit of membership and an invaluable resource to BFSB was the opportunity afforded members from all sectors to participate in special working groups convened throughout the year to undertake specific assignments of importance to the industry. More than 35% of BFSB members contributed time to work groups, which produced significant output for: the Bahamas Financial Services Guide, the Careers Guide, E-commerce Legislation and Guidelines, Amendments to the IBC Act, assessment of Aviation Registry Services, and Strategic Development. The quality of support received from members during the year was outstanding, and indispensable to BFSB’s ability to discharge its mandate. The composition and mandate of BFSB and the opportunities and demands of our industry continue to require this open [and generous] contribution and engagement by individual members. Website Development After some six months of development, and with the guidance of a specially convened work group, bfsb-bahamas.com was launched in early March. Through its new website, BFSB has developed a powerful platform across which a large market with direct interest in the financial services offerings of The Bahamas is instantly and continually provided a deep range of current information. Since launch, activity on the site has continued to grow. “hits” now exceed 19,000 per month, and there are approximately 3,500 substantial “visits” to the site per month. There are over 500 repeat monthly visits. The information provided through these daily site enquiries is extensive. Top downloads are the BFSB brochure and newsletters. Top enquiries are for information / assistance related to specific companies and company formation, investment / advisory and management services, and current Bahamas industry news. Most of the site visits originate from North America, Europe and Japan. BFSB has set up services to provide a preliminary response to all ‘customer’ e-mail enquires within 24 hours. Over the year the site has grown substantially, directly in response to user demand. It is becoming a benchmark site within the industry. Its key features now include: -Information About BFSB -Information About the Industry -Frequently Asked Questions -Member Directory -Members in the News -Financial Services Legislation -BFSB News Briefs -Financial Services Guide -Customer Service E-mail Given its performance and the level of user demand over the past year, bfsb-bahams.com should continue to evolve as a major platform across which BFSB, its members, and the financial services industry of The Bahamas service an important segment of the international financial services marketplace. Publications and Products During the year, BFSB committed substantial resources to publishing and distributing a Quarterly Newsletter, a Guide to Careers in Financial
International Advertising /Media Relations Despite the constraints of a limited budget, BFSB targeted several small, but key publications during 2000, a presence in which provided significant reach to intermediaries who typically refer business to The Bahamas. As the publications were generally small, cost of advertising was relatively inexpensive. But, as they were directed to specific professional groups, such as lawyers, advertising in them was thought to be effective. BFSB placed advertising insertions in the following publications: -ICFA Offshore Centres Handbook -International Money Marketing [2] -In Brief [2] -International Wealth Management[4] -Mondaq -Trust and Trustees Media Relations / Editorial Placements During the year, again in an effort to optimize market reach with limited resources, BFSB directed its media relations activities toward specialist publications favored by intermediaries such as trust and estate practitioners, lawyers and other industry specialists. Efforts were directed to such industry publications, with articles, special Bahamas sections and bye-lined submissions appearing in: -Financial Times Survey – Caribbean /Atlantic Financial Centres -OFC Report 2000 -Offshore Financial Review -Trust & Trustee -Professional Advisors Guide to International Offshore Centres -Offshore Finance Review (Canada) -ICFA Offshore Centres Yearbook -International Trust Yearbook 2000 -International Financial Services Centres 2000 -Investment International -Offshore Investment Special reports, which had been planned for more costly and larger circulation publications, such as the Financial Times and L’Agefi, were rescheduled to 2001. (Extract from Year-End Report to Members As Presented by Barry J. Malcolm, CEO & Executive Director)
Wendy C. Warren Bahamas Financial Service Board Announces New CEO and Executive Director Wendy C. Warren has been named the new Chief Executive Officer and Executive Director of the Bahamas Financial Services Board (BFSB), effective February 1, 2001. Formerly, she was a Director and Co-Founder of Cardinal International Corporation, where she was responsible for client servicing. “We are delighted to have someone of Wendy’s professional standing continue the leadership of BFSB”, said Ian Fair, BFSB’s Chairman. “She has a tremendous understanding of the industry and the issues we are facing. The experience and the contacts she brings to the position will enable BFSB to remain a proactive and effective organisation, both domestically and internationally.” Ms. Warren is a Director of the Bahamas Electricity Corporation and the Bahamas Association of Fund Administrators. She was also a founding member of BFSB’s initial Board of Directors from 1998 to 2000. Prior to joining Cardinal, Ms. Warren was a Manager with MeesPierson (Bahamas) Ltd., and a Senior Auditor with KPMG. Ms. Warren replaces Mr. Barry J. Malcolm, who has accepted the appointment of Executive Vice-President with the Grand Bahama Port Authority Group of Companies in Freeport, Grand Bahama.
Photo Caption – BFSB Directors (left to right): Gregory Cleare, Vice-Chairman, Paul Moss, Geoffrey Hooper, Pamela Klonaris, John Delaney, and Barry J. Malcolm, BFSB’s Executive Director. ANNUAL GENERAL MEETING BAHAMAS FINANCIAL SERVICES BOARD The Annual General Meeting of the Bahamas Financial Services Board was held on Wednesday, October 4, 2000. The Agenda included presentation of the Annual and Financial Reports, as well as Election of Directors for the year 2000-2001. Directors re-elected to the Board were: Carmen Butler, Citibank, N.A.; Gregory Bethel, Fidelity Merchant Bank & Trust Ltd.; Gregory Cleare, KPMG; Clifford Culmer, BDO Mann Judd; Larry Gibson, Colina Financial Advisors; William Jennings, Leadenhall Bank & Trust Company Ltd.; Ishmael Lightbourne, PricewaterhouseCoopers; and Walter Wells, CIBC (Bahamas) Ltd. New Directors elected were: John Delaney, Higgs & Johnson; Geoffrey Hooper, The Winterbotham Trust Company Ltd.; Pamela Klonaris, Callenders & Co.; Gregor Maissen, Credit Suisse (Bahamas) Ltd.; Brian Moree, McKinney Bancroft & Hughes; and Paul Moss, Dominion Management Services Ltd. In his Annual Report, Executive Director Barry J. Malcolm highlighted BFSB programmes and achievements, including membership services, the www site, BFSB publications and products, promotional tours, conference sponsorships, international and domestic advertising, BISX support and Government liaison initiatives. He took the opportunity to present a preliminary overview of the Year 2001 Plan, indicating that BFSB’s 2001 marketing and strategic development programmes will be geared towards reassuring and confirming to the market that The Bahamas remains the superior jurisdiction for financial services. According to the Executive Director, BFSB will “build on what we already have been doing over the last number of years, but with a specific purpose towards having the international marketplace truly understand how The Bahamas has emerged through the current initiatives, and who we are, in light of refinement to the industry”. Vice Chairman Gregory Cleare also spoke of BFSB’s future plans, indicating that while promotion of the industry will no doubt again be a focus of efforts, the organisation must in the circumstances now lay new foundations for the industry, re-shaping and establishing services and products — and even how it perceives the industry. The Vice Chairman also reported on the Strategic Development Committee established to formulate a private sector plan for the continued growth, development and prosperity of the Bahamas’ financial services industry. In particular, AGM attendees were presented with an overview of the Committee’s work in providing industry input to the Bahamas Government on the legislative and regulatory changes expected to impact the financial services industry in the coming months. Photo Caption: Members of the Strategic Development Committee answering questions from the audience at the AGM include (left to right) Bruce Bell, Oceanic Bank & Trust & the Association of International Bank & Trust Companies; Judith Whitehead, Graham Thompson & Co.; and Gregory Cleare, KPMG.
The year end report and 2000 AGM details are now available for download using the link below:
Members of BFSB’s Executive Committee will be visiting London, Jersey, and Guernsey between May 21-26. While in London, meetings have been scheduled with Leopold Joseph, Rothschild, The Royal Bank of Scotland, and S.G. Hambros. These member affiliates are hosting forums with their principals and intermediaries, providing the opportunity for BFSB to present an update on the financial services industry in The Bahamas. Meetings are being held with the International Underwriting Association of London, and The Friends of The Bahamas as well. While in Jersey and Guernsey, BFSB will take the opportunity to meet with industry counterparts — discussing issues of common concern to international financial centres. BFSB member affiliates in Jersey and Guernsey will host the visiting delegation and facilitate business contacts. These include Chase Manhattan in Jersey and MeesPierson and Leopold Joseph in Guernsey.
BFSB has planned a 10-day promotional trip to 4 Latin American countries, starting November 5 and continuing through to November 14. The delegation will visit Argentina, Uruguay, Chile and Brazil.
