Private Wealth Management – Page 2 – Bahamas Financial Services Board

St. Lucia Hosts Regional STEP Conference

@BahamasFSB / April 27, 2016

The 2016 [STEP Caribbean Conference](http://www.stepcaribbeanconference.com) (STEPCC) is being held April 25-27 in St. Lucia. Under the theme “Riding the Curl…Mastering The Waves of Change” the annual event hosts a stellar lineup of speakers drawn from the financial services sector from around the world – experts in trust and wealth structuring. Thirteen jurisdictions in the Caribbean region are participating, with each having served on the conference steering committee charged with developing the 3-day programme. The Bahamas Ministry of Financial Services was a sponsor of last evening’s Cocktail Reception, with Minister the Hon. C.V. Hope Strachan, M.P., presenting remarks on the strength of the Bahamian financial services sector. Also yesterday, Conference delegates recognised the Top STEP Diploma Student in the Caribbean and Latin American Region – none other than Veronique Evans of Evans & Co., Nassau. The recipient of the annual Award achieved the highest average grade covering all papers for the STEP Diploma in International Trust Management for the period February 2015 – January 2016. Earlier this year when announcing the programme, STEP CC16 Chair Natalie Augustin of St. Lucia Law Firm Glitzenhirn Augustin & Co. stated *”Increasingly trust professionals are facing a myriad of issues on a daily basis and change seems to be the only constant.”* The STEP Caribbean Conference has been designed to provide delegates with thought leadership on a variety of topics and the Chair says *”delegates will come away from the conference fully equipped to deal with the on-going turbulence of the sector on a macro scale.”* For over 16 years, the steering committee for the STEP Caribbean Conference has been meeting to produce one of the world’s best attended and most talked about trust conferences. The STEP Caribbean region, part of the larger STEP worldwide association, is fast becoming one of the most influential and largest regions in the STEP world. *Photo Caption: Minister Hope Strachan, fifth from left, stands with the Bahamian delegates and STEP student award winner Veronique Evans, centre, at the 2016 STEP Caribbean Conference in St. Lucia. Photo Credit – Andrew Robichaud/Springstreet Communications Inc.*

Asset Management, Industry News, Newsletter, Private Wealth Management

Family Offices Find a Home in The Bahamas

@BahamasFSB / April 25, 2016

##The Bahamas: An Ideal Location## With the globalization of families and their businesses it is often convenient for the Family Office, business headquarters, as well as the legal holding structure, to be located in a jurisdiction that provides a suite of products that can meet the diverse needs of multiple family members. The Bahamas has experienced 280 years of uninterrupted parliamentary democracy. The judiciary is independent and upholds respect for property rights and the rule of law. As such, it is an ideal jurisdiction for private wealth management activities. The Bahamas is an ideal platform for family offices either as a stand-alone or as a branch of a family office already established in another jurisdiction. Family offices increasingly are becoming institutionalized with a significant focus on effective risk management, performance measurement and an emphasis on governance and purpose. The Bahamas provides a financial infrastructure without comparison which can support the family office giving it access to institutional asset management options and first class service providers including private banking which has traditionally been the bedrock of product offerings, funds, trust and corporate services. Creating an environment where family offices can operate efficiently has been designated as a key growth area for The Bahamas as families and their advisors have begun to recognize that there is flexibility in the “size” of the family office footprint in The Bahamas. They can choose to build their family offices around one or any number of structures or licences which provide a true and regulated presence in The Bahamas including: * Private Trusts Companies; * Financial and Corporate Service Providers Licence; * Securities Advisor and Management Licences; * Bank and/or Trust Licence; ##The Bahamas Advantage## The Bahamas offers a number of key advantages for the establishment of a Family Office. **Strategic Location:** The Bahamas is situated at the Crossroads of the Americas, just 65 miles off the east coast of Florida. An ideal hub for regional investment and business in the Eastern United States and Canada, and much of Central and South America, it is in the same time zone as New York, Miami and Toronto, so office hours align with most of the major business centres in the Americas. **Infrastructure:** The Bahamas has developed land, suitable premises and fit-for-purpose infrastructure with the singular focus of facilitating international business. Moreover, The Bahamas is easy to get to, with six major airports and 49 other airports situated throughout the archipelago, as well as countless ports of entry and marinas that can accommodate the largest yachts. **Skilled Workforce:** The Bahamas has a highly educated local workforce and a long tenure in financial services excellence which has created a deep pool of skill and experience that is recognized and trusted worldwide. With more than 6000 experienced financial professionals committed to the local community, clients can expect to build deeper and more lasting relationships and receive more consistent service in The Bahamas than in locations largely dependent upon imported skills. **Regulation:** The Bahamas encourages the growth of its financial sector through adherence to internationally accepted regulatory principles, and efficiency in their administration. Regulatory independence is maintained through the separation of roles of policy makers and regulators. **Independence:** The Bahamas has an outstanding record of political and economic stability, progress and stewardship. An independent nation since 1973, The Bahamas is a politically stable, democratic and sovereign nation. **Lifestyle:** The Bahamas is located in one of the most idyllic tropical settings in the world and has many attractive features for those who may wish to relocate permanently or establish a second home. To meet the diverse and sophisticated tastes of travelers and residents alike, The Bahamas offers something to suit every taste: rest and relaxation, family fun and entertainment, or adventure and exploration. With miles of natural sand beaches, out-door attractions, luxury resorts, golf, casinos, restaurants and shopping, there is no shortage of exciting things to do. ##Bahamian Solutions for Family Office## The Bahamas offers owners of capital a broad choice of financial institutions that deliver a myriad of services including banking, private banking and trust services, investment fund administration, capital markets, investment advisory services, accounting and legal services, e-commerce, insurance and corporate and shipping registries. The Bahamas is a favourable jurisdiction for the establishment of family offices, which help wealthy families achieve their goals while dealing with increased regulations, and complex issues of taxation, distribution planning and charitable giving. Ultimately we have found that family owned Trusts, Foundations and Private Trust Companies (PTC’s) – cornerstones of wealth and asset management services in the Bahamas –form the legal backbone of these systems and many families have set up Family Offices to support and assist the families in the running of their affairs. **TRUSTS** Trust legislation in The Bahamas is robust and in many cases precedent-setting, providing family offices with the benefits of asset protection, control, succession planning and confidentiality including: **Asset protection:** The Fraudulent Dispositions Act ensures disposition can only be set aside at the instance of a creditor (actual or contingent) with actual knowledge and that transfer is set aside only to the extent necessary to satisfy the particular claim. While the **Trustee Act (1998)** contains Anti Forced Heirship Provisions; and the **Trusts Choice of Governing Law Act, 1989** states that *“A settlor, whether or not he is resident in The Bahamas, may expressly declare in the trust instrument that the laws of The Bahamas shall be the governing law of the trust”.* **Control:** The **Trustee Amendment Act, 2011- Directed Trust Provisions** gives settlors certainty as to effectiveness of power to direct the trustee, thus allowing investment management decisions to be undertaken by those most suitably qualified to do so. **Succession Planning:** The **Trustee Amendment Act, 2011** incorporates Hostile Beneficiary Clauses, ensuring that the wishes of the settlor to have a long term structure are not defeated by an erratic or unstable beneficiary. **Confidentiality:** Under**the Trustee Act** there is no public register of trusts or trust documents and Disclosure is limited to beneficiaries that do not have a vested interest.

Asset Management, BFSB News, Industry News, Private Wealth Management, The Economy

The Economy, International Finance and Investment in The Bahamas

@BahamasFSB / April 10, 2016

Ahead of the [Annual Meeting](http://events.iadb.org/Calendar/eventDetail.aspx?lang=en&id=4877&SP=W&OID=632&) of the Inter-American Development Bank, Silvia Pavoni, Economics Editor at The Banker, travelled to Nassau, The Bahamas, to chair a [discussion](http://www.thebanker.com/Landing-Pages/Bahamas/Bahamas?utmcampaign=View+from+IDB+Roundup+2016&utmsource=emailCampaign&utmmedium=email&utmcontent=) about the country’s financial centre and its place in the local economy as well as in the world of international finance and trade. Discussion points: * The Bahamas’ financial services sector * The financial centre’s role and reputation * International regulation and compliance * Financial innovation Participants: * David Munoz, CEO, Deltec Bank and Trust * Hope Strachan, minister of financial services and local government, Bahamas * Ivan Hooper, CEO, The Winterbotham Trust Company * Ivylyn Cassar, vice-chairman, Equity Bank and Trust Bahamas * Michael Paton, partner, Lennox Paton * Tanya McCartney, CEO, Bahamas Financial Services Board The 57th Annual Meeting of the Board of Governors of the Inter-American Development Bank (IDB) and the 31st Annual Meeting of the Board of Governors of the Inter-American Investment Corporation (IIC) were held in Nassau, The Bahamas, from 7th to 10th April, 2016. Ms. Pavoni reported on the key themes from the IDB event. The Banker’s [View From IDB](http://www.thebanker.com/International-Meetings/View-from-IDB?utm_campaign=View+from+IDB+Roundup+2016&utm_source=emailCampaign&utm_medium=email&utm_content=) brings you regular multimedia coverage and provides exclusive viewpoints and thought-led discussions with key industry figures.

Industry News, Members in the News, Private Wealth Management

The Bahamas Must Play To Its Strengths

@BahamasFSB / November 4, 2015

[Andbank (Bahamas) Limited](https://bfsb-bahamas.com/providers.php?cmd=view&id=725&pre=y) yesterday opened a two-day meeting for Global Managing Directors at the One & Only Ocean Club on Paradise Island, with over 30 of its top executives here discussing global trends, strategies and initiatives to position it as a leading private bank across the globe. Andbank’s global chief executive Ricard Tubau expressed optimism about the institution’s business in The Bahamas. He said, *“We are optimistic here. That is the reason why we are having the meeting in The Bahamas. We are living in moments of tectonic shifting where you have challenges but, at the same time, opportunities.”* In particular, the Executive spoke about opportunities for his group in connecting The Bahamas with Latin America, a region where Andbank has 60% of its employees. *“We truly believe that this connection is going to happen and that we will be capable of taking off with that,*” he said. That being said, Mr. Tubau also spoke to the challenges being faced by the industry in light of the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) – as well as increased costs of doing business – with predictions that there could be a contraction in the number of industry players. He felt institutional mergers will happen as firms seek to acquire scale and maintain profitability. He compared the loss of private banks in Switzerland from 170 to 130 with the present count of over 200 still in this jurisdiction. Manel Martinez, CEO of Andbank (Bahamas) said the Bahamian financial services industry needs to continue efforts to differentiate itself from its competitors. *“As an industry we need to up our game, offer good quality service and differentiate ourselves by the service provided; this can be the deciding factor in our future,”* Mr Martinez said. He felt this is very doable because of the excellence of the professional community in the jurisdiction. He also spoke to the development of new products within the industry and finding creative ways to attract investors, complimenting the Bahamas Financial Services Board and the Government on its ongoing initiatives in these areas. *“These initiatives are key to the future of the financial services industry in The Bahamas,”* he said. Mr. Martinez said Andbank is committed to promoting The Bahamas, a beautiful country that has a lot to offer to high net worth individuals, including residency. He added that The Bahamas also has to fight as a jurisdiction to get a level playing field – and avoid being positioned in a group that has disadvantages. *“We have to fight for bilateral agreements, and it’s very important that The Bahamas fights hard. We have to play to our strengths as a country.“* Andbank are private bankers with more than 80 years’ experience, a presence on two continents, and one of the highest solvency ratios in the industry.

Asset Management, BFSB News, Industry News, Private Wealth Management

Bahamas Landfall: Destination Beijing

@BahamasFSB / November 2, 2015

Today, the Team is in Beijing as part of its 4 city [promotional tour](https://bfsb-bahamas.com/news.php?cmd=view&id=3436&pre=y) in Asia, continuing with ***“Updates on the Newest Developments in Wealth Management, Asset Management and Lifestyles”*** in The Bahamas. The presentations are being hosted at the Sofitel Wanda Beijing. Industry sponsors joining the Ministry of Financial Services and BFSB in hosting this promotional event include Equity Bank and Trust Limited, Leno Corporate Services and The Winterbotham Trust Company. Other sponsors include The Pointe and the Bahamas Ministry of Tourism.

Asset Management, BFSB News, Industry News, International Issues, Private Wealth Management

Bahamas Landfall: Destination Hong Kong

@BahamasFSB / October 29, 2015

BFSB and the Ministry of Financial Services are in Asia over the next three weeks hosting a series of promotional events. These will include brand presence in Hong Kong, Beijing, Shanghai and Singapore, by way of two Landfall events, the China Offshore Summit and STEP Asia. The first leg of the 4 city tour started today, with Landfall Hong Kong. See below for the agenda, with sponsor profiles, and the presentations by members of The Bahamas Team, including a *”Looking Glass Perspective on a Premier International Financial Centre”* by Minister of Financial Services, the Hon. C.V. Hope Strachan, M.P. Industry sponsors joining the Ministry and BFSB in hosting this promotional event include Equity Bank and Trust Limited, Leno Corporate Services and The Winterbotham Trust Company. Other sponsors include The Pointe and the Bahamas Ministry of Tourism. Here is the message that logistics partner MX Media has been circulating as part of the invitation for participation in the comprehensive promotional outreach by financial services practitioners and intermediaries, including HNWIs, throughout the 4 cities: *”The Bahamas is strategically located 65 miles off the east coast of America, and is one of the most prosperous and richest countries in the Caribbean region. Apart from a flourishing tourism industry, the most powerful engine behind the economy is financial services, which account for about 20 percent of its GDP. It’s home to more than 250 licensed banks and trust companies, including 1/3 of the top 20 global banks.* *Additionally, there are more than 145 securities investment advisors, around 60 fund administrators, over 800 investment funds, and 300+ financial and corporate service advisors – all regulated. There are over 1700 vessels on the maritime registry and 76,000+ structures on the companies registry, including diverse corporate structures.* *As the country constantly upgrades its legislation and regulatory systems, cultivates a skilled workforce and enhances travel and telecommunications infrastructure, its appeal to the world’s principal financial institutions and services providers has been growing even greater.* *With the improved interaction between Asia and The Bahamas at both government and private sector levels in recent years, getting involved in the financial sector of The Bahamas could bring desirable returns to Asian investors seeking safety of wealth and stable returns.* *Chinese practitioners and professionals will discover why The Bahamas is one of the world’s foremost wealth management centres, and a sound financial centre for prudent investors. There are also opportunities to familiarize yourselves with the full range of private banking, trust and estate planning, asset management and fund administration services. Moreover, it is an ideal occasion to learn more about The Bahamas’ niche platforms for the global family, as well as its insurance, legal and accounting, corporate registry, capital markets, and maritime services.*” The Team moves now to Beijing for The Bahamas Landfall in that city on November 2nd, before travelling to Shanghai for the 2015 China Offshore Summit, and finally on to Singapore for STEP Asia.

Asset Management, BFSB News, Industry News, Private Wealth Management

STEP LatAm 2015

@BahamasFSB / October 29, 2015

The 5th [STEP LatAm Conference](http://www.steplatamconference.com/) was held in Sao Paulo, Brazil on October 22–23. One of the largest of its kind in the hemisphere, the LatAm Conference is a gathering of the top professionals in the industries of international estate planning, trust and family governance. This year the conference hosted 350 delegates from 35 countries around the globe. The 30-strong Bahamian delegation in attendance was led by The Hon. C.V. Hope Strachan, Minister of Financial Services; John Lawrence, Director of STEP Worldwide; Aliya Allen, CEO of the Bahamas Financial Services Board (BFSB); and Marie Cargill, Branch Chair of STEP Bahamas. The Ministry of Financial Services was the “presenting sponsor” and Minister Strachan joined John Lawrence in speaking at the opening of the conference. Director Lawrence said this was a superb opportunity for The Bahamas to showcase the depth of its professionals in the financial services industry and in particular its expertise in estate planning as it applies to the Latin American market. Minister Strachan commented, “*As we move forward to build on what we have already established through our SMART funds and our recently introduced Investment Condominium (ICON) we will continue to focus our efforts on innovation and creating products and services that offer the best opportunities for the Latin American market.”* BFSB CEO Aliya Allen presented at a breakout session on “Funds for Family Planning”. She spoke to the challenges of family funds, the general factors driving capital flows, institutional versus family fund vehicles, the benefits of funds versus other vehicle types and concluded with giving case study scenarios. *Photo Caption: STEP Worldwide Director John Lawrence, Minister Hope Strachan, and BFS CEO Aliya Allen.*

BFSB News, Industry News, Newsletter, Private Wealth Management

The A BEE Cs of Family Governance – The Bahamas Executive Entity

@BahamasFSB / October 3, 2015

When The Bahamas passed the [Executive Entities Act](https://bfsb-bahamas.com/legislation/2011/ExecutiveEntitiesAct2011.pdf) in 2011, it did so in an attempt to resolve what Rose Chamberlayne, partner in the London firm of Wiggin, Osbourne, Fullerlove, describes as a *“universal challenge”*, in that families can go from *“shirtsleeves to shirtsleeves in three generations.”* Ms. Chamberlayne is a former partner at Macfarlanes who along with Bahamian advisors and the Bahamas Financial Services Board worked on the BEE legislation. She notes, *“Family Office advisors are actively engaged in working with UHNW families and their businesses to break this paradigm. But how is this done? Whilst governance systems and processes which stabilise control of the family wealth, democratically plan for succession, enfranchise the family in a united purpose and deter and deal with conflicts are increasingly recognised as the proper tool for the job, it is how these are actually adopted into a wealth structure and adhered to in practice which presents the real challenge.”* Echoing Ms. Chamberlayne, Katie Booth, Managing Director of Amber Private Office Ltd., says *“Many have come to realise that a succession plan only works in practice if successive generations subscribe to it and share in its vision and philosophy. Any such plans, however entrenched in the asset structuring and governance documentation, will only be of real practical benefit to the family if they are capable of responding to the family’s changing circumstances. A successful legacy family is one where the succession plan is based on a shared vision, not simply by the decree of the patriarch.”* The BEE was enacted to put in practice the proper tools for governance in a common law legislative framework that is respected and secure. Indeed, many of the BEEs on the register in The Bahamas were designed to act as protectors or enforcers, just the type of fiduciary roles that enable the family to maintain their wealth. This wealth is not simply at risk because of errant heirs but largely because without a clear direction, wealth shrinks if spending outpaces returns …even more so, the larger the family tree. This is why governance is so critical and as Ms. Chamberlayne notes, *“The BEE offers a simple and focused platform for implementing governance within wealth structures.”* In addition to governance functions, the original challenge the BEE was designed to meet was that of the share ownership of a private trust company. Finding a holding entity that does not create unnecessary complexity is always a challenge and the BEE resolves this problem in the neatest way possible because it is self-contained. The Bahamas is looking to make further amendments to the BEE Act this year, which would enable the BEE to perform functions like holding and exercising rights in relation to the management shares of an operating company or investment fund. The fact that the BEE is able to obtain insurance to indemnify its officers and council members makes it ideal for this purpose. BFSB CEO Aliya Allen notes that already this year the Financial Transactions Reporting Act in The Bahamas was amended to allow the BEE to operate in relation to structures organized in more countries, including BVI, Chile, India and Mexico. This is welcome news for wealth advisors who were waiting to utilize the BEE in structures organized in a wider array of jurisdictions, *“Designed as a best practice solution for a single family office looking for an entity to own the shares of a PTC, act in a supervisory or advisory capacity and carry out administrative functions in relation to a series of structures, the BEE has grown into a versatile and popular vehicle with its executive capabilities set to expand further.*” says Ms. Chamberlayne. Remarking on The Bahamas’ attractiveness for family offices, CEO Aliya Allen, says, “*Family Offices and their advisors are finding that The Bahamas offers a host of advantages: a full product suite of best in class legislation, a welcoming environment for business and residency, and the financial infrastructure, administration and asset management options that allow it to truly deliver to clients a fully integrated and overarching wealth plan for generations to come.”*

Asset Management, BFSB News, Industry News, Newsletter, Private Wealth Management

Bahamas Landfall Returns to Brazil

@BahamasFSB / October 1, 2015

Bahamas Landfall hosted by the Bahamas Financial Services Board (BFSB) and the Ministry of Financial Services is returning to Brazil in October with events scheduled in Rio de Janeiro on October 20 and São Paolo on October 21 and 22. The Bahamas Landfall event in Rio de Janeiro on October 20 will take the form of a breakfast briefing while São Paolo will see Landfall events scheduled during a breakfast presentation and cocktail reception on October 21 and 22 respectively. Register [here](http:// https://bfsb-bahamas.com/bahamaslandfall/2015/brazil/). BFSB and its member firms who will be attending the events in Brazil will also participate in the [STEP LATAM](http://www.steplatamconference.com/) conference which coincides with their time in São Paolo. The Landfall cocktail reception and presentation on October 22 will be part of the STEP programme with attendance open to all STEP delegates and Landfall guests. The Ministry of Financial Services also is a sponsor of the 2015 STEP LATAM conference – themed *“Where Common Law and Civil Law Converge: The Cross Roads of The Future”* – as are Amicorp and Higgs & Johnson, two of the corporate sponsors of the Bahamas Landfall events. Other Landfall sponsors are Caystone Solutions; Deltec; Genesis Fund Services; Glinton Sweeting O’Brien; Lennox Paton; and Windermere Corporate Management. Media Sponsor is Dupuch Publications. *“BFSB’s Landfall events which were launched in 2010 and have played a pivotal role in the headway that has been made in Brazil and in promoting The Bahamas’ advantages in international financial services in the other global markets targeted,”* says Aliya Allen BFSB’s CEO and Executive Director. “*Landfall events were strategically conceived as a platform for conveying The Bahamas Advantage for private wealth and asset management, residency and international business, engaging multiple stakeholders.”* Bahamas Landfall presentations will feature Bahamian practitioners and resident fund managers who will provide an update on investment funds in The Bahamas, including the Bahamas Investment Condominium, known as the Bahamas ICON, which was designed to meet the specific needs of Brazilian investment managers and advisors as well as Latin American managers more broadly. The latter was evident when BFSB hosted its first Landfall event in Mexico this past summer. *“As the second largest economy in Latin America, Mexico offers untapped business opportunities for Bahamian wealth and asset management service providers,”* adds Ms. Allen. *“We saw the same opportunities in Brazil a number of years ago and developed a strategic game plan to increase the Bahamas presence and, in the case of ICON, create a product that was specific to Brazil. Our success there speaks to the wisdom of that decision and the efforts and investments we have put behind it. We think Mexico holds the same promise of success.”* The presentations in Brazil will cover: * Practical perspectives and scenarios on fund structuring; * Asset protection and succession planning; * Family offices and asset planning; and * Confidentiality in the age of information exchange. For further information on Bahamas Landfall Brazil, please contact info@bfsb-bahamas.com.