Alien
10-30-06, - 05:52 PM
http://www.jonesbahamas.com/?c=45&a=10408
Is she making sense, or stating the obvious?
Financial Centre Sees Business Shift
By Darrin Culmer
The Bahamas and a number of its regional financial services counterparts could be facing another challenge to their ongoing efforts to attract more international business, according to CEO and Executive Director of the Bahamas Financial Services Board (BFSB) Wendy Warren.
CEO and Executive Director of the Bahamas Financial Services Board (BFSB) Wendy Warren.
Speaking on the final day of the two-day Caribbean Group of Securities Regulators 3rd Annual Conference on Friday, Ms. Warren disclosed that local industry officials have seen a shift of business from emerging financial centres in the Caribbean and other centres such as the Channel Islands to onshore centres such as Singapore.
She explained that the development was one of the consequences of the blacklisting of The Bahamas and a number of other countries by the Financial Action Task Force (FATF) of the OECD in June of 2000 as non-cooperative countries or territories.
The FATF announced last October that it had removed The Bahamas from the list of FATF-monitored countries.
"I think we’ve seen quite a bit of negative press as a result of the blacklisting, as a result of threatened listings and also as a result of change occurring in a very short space of time," Ms. Warren said.
"Clients like consistency, particularly those in financial services. I would say one of the biggest trends is the fact that centres have actually attracted business from the Caribbean territories back onshore in terms of major OECD countries, this (onshore) trend where clients are moving back to the major cities, particularly cities such as London and New York."
Addressing an audience of financial services regulators and practitioners from throughout the Caribbean who were assembled at the British Colonial Hilton Hotel, Ms. Warren pointed out that the blacklisting resulted in significant changes in the way business was conducted.
One such alteration, she said, was the almost immediate need for both countries and individual institutions to increase their focus on branding and enhancing brand recognition.
"The Bahamas and the Cayman Islands, particularly as primary banking centres under the spotlight of the FATF, moved quickly in 2000 to respond to a perceived need to manage the brand as it relates to their international clients," she said.
"In addition to that the focus has continued. We know that all of the governments and the regulatory agencies (around the region) have really put a significant amount of time into planning for continued assessment processes. These processes have continued and are really driving the way countries are investing in their financial services industries."
According to Ms. Warren, industry officials have also observed another prominent trend, a process which she described as consolidation.
That trend, she said, has been influenced by modern communications and the ongoing push toward globalisation.
"(The trend) has also been impacted by the need to manage costs," she explained.
"The cost of compliance and the cost of regulation has increased and institutions are looking for means to manage their bottom lines and so consolidation is also a major factor in our economy now."
Referring to statistics on the global financial services industry, the BFSB CEO noted that there are roughly 8.7 million people worldwide who hold more than $1 million in financial assets.
That group of persons, she said, is reported to have an estimated value of $33 trillion.
Ms. Warren explained that as part of their ongoing push to maintain and improve upon this nation’s position as a leading financial centre industry officials are targeting niche markets within the global financial services industry in order to attract that business to The Bahamas.
In particular industry professionals are hoping to attract more ultra high net worth individuals – persons with $30 million or more in financial assets – she said.
Noting that many clients transacting business in various financial centres are becoming "far more sophisticated" Ms. Warren forecasted that this trend could present significant challenges and opportunities for The Bahamas and other regional centres.
"Globalisation is causing clients to have a far greater global footprint," she said.
"There are statistics that show that there is a higher chance of growing the financial services industry where there are other connections such as second homes or visits to the country. So this movement… to have (second) homes and be more globally focused I think will bear benefits to the international financial centres that are in the Caribbean."
Is she making sense, or stating the obvious?
Financial Centre Sees Business Shift
By Darrin Culmer
The Bahamas and a number of its regional financial services counterparts could be facing another challenge to their ongoing efforts to attract more international business, according to CEO and Executive Director of the Bahamas Financial Services Board (BFSB) Wendy Warren.
CEO and Executive Director of the Bahamas Financial Services Board (BFSB) Wendy Warren.
Speaking on the final day of the two-day Caribbean Group of Securities Regulators 3rd Annual Conference on Friday, Ms. Warren disclosed that local industry officials have seen a shift of business from emerging financial centres in the Caribbean and other centres such as the Channel Islands to onshore centres such as Singapore.
She explained that the development was one of the consequences of the blacklisting of The Bahamas and a number of other countries by the Financial Action Task Force (FATF) of the OECD in June of 2000 as non-cooperative countries or territories.
The FATF announced last October that it had removed The Bahamas from the list of FATF-monitored countries.
"I think we’ve seen quite a bit of negative press as a result of the blacklisting, as a result of threatened listings and also as a result of change occurring in a very short space of time," Ms. Warren said.
"Clients like consistency, particularly those in financial services. I would say one of the biggest trends is the fact that centres have actually attracted business from the Caribbean territories back onshore in terms of major OECD countries, this (onshore) trend where clients are moving back to the major cities, particularly cities such as London and New York."
Addressing an audience of financial services regulators and practitioners from throughout the Caribbean who were assembled at the British Colonial Hilton Hotel, Ms. Warren pointed out that the blacklisting resulted in significant changes in the way business was conducted.
One such alteration, she said, was the almost immediate need for both countries and individual institutions to increase their focus on branding and enhancing brand recognition.
"The Bahamas and the Cayman Islands, particularly as primary banking centres under the spotlight of the FATF, moved quickly in 2000 to respond to a perceived need to manage the brand as it relates to their international clients," she said.
"In addition to that the focus has continued. We know that all of the governments and the regulatory agencies (around the region) have really put a significant amount of time into planning for continued assessment processes. These processes have continued and are really driving the way countries are investing in their financial services industries."
According to Ms. Warren, industry officials have also observed another prominent trend, a process which she described as consolidation.
That trend, she said, has been influenced by modern communications and the ongoing push toward globalisation.
"(The trend) has also been impacted by the need to manage costs," she explained.
"The cost of compliance and the cost of regulation has increased and institutions are looking for means to manage their bottom lines and so consolidation is also a major factor in our economy now."
Referring to statistics on the global financial services industry, the BFSB CEO noted that there are roughly 8.7 million people worldwide who hold more than $1 million in financial assets.
That group of persons, she said, is reported to have an estimated value of $33 trillion.
Ms. Warren explained that as part of their ongoing push to maintain and improve upon this nation’s position as a leading financial centre industry officials are targeting niche markets within the global financial services industry in order to attract that business to The Bahamas.
In particular industry professionals are hoping to attract more ultra high net worth individuals – persons with $30 million or more in financial assets – she said.
Noting that many clients transacting business in various financial centres are becoming "far more sophisticated" Ms. Warren forecasted that this trend could present significant challenges and opportunities for The Bahamas and other regional centres.
"Globalisation is causing clients to have a far greater global footprint," she said.
"There are statistics that show that there is a higher chance of growing the financial services industry where there are other connections such as second homes or visits to the country. So this movement… to have (second) homes and be more globally focused I think will bear benefits to the international financial centres that are in the Caribbean."