Barbados International Securities Market - Open for Business In Africa s Mining Industry

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1 Barbados International Securities Market - Open for Business In Africa s Mining Industry Africa s Mining Industry Breakfast PDAC 2016 March 8, 2016 Presented by Marlon E. Yarde CEO & General Manager

2 Topics Covered Background of the Barbados Stock Exchange (BSE) The International Securities Market (ISM) What is the ISM? Why an ISM? Core products ISM Membership Why Barbados? Our Competitive Advantage The Rules Where are we at in the process? Conclusion

3 Background of the BSE Established in 1986 as the Securities Exchange of Barbados. Re-incorporated under the Companies Act on August 2, 2001 to become the Barbados Stock Exchange Inc. Member-owned, non-profit company. Self-regulatory organization. As at Dec 31, 2015 market capitalization of BDS $8.7B or US $4.35B. Subsidiary: Barbados Central Securities Depository Inc (BCSDI).

4 INTERNATIONAL SECURITIES MARKET

5 What is the ISM? A market for the listing and trading of securities of issuers who may or may not be incorporated in Barbados that would otherwise be listed and traded on other exchanges around the world. Examples of other exchanges include the second tier markets of Canada, US and UK. This is not a new concept e.g. Bermuda, Cayman Islands and Channel Islands (Benchmark Exchanges). 5

6 Why an ISM? The missing pillar in Barbados international financial centre Raises the possibility of attracting new types of international business to Barbados Encourages positive use of the numerous double tax treaties Enables new types of business to be undertaken (listing sponsors)

7 ISM Core Products Equities Bonds and other fixed interest securities Mutual funds 7

8 Why Barbados? Quality: Enabling business environment; A prudent regulatory environment that meets or exceeds international best practices; Excellent professional services from reputable international banks, major international accounting firms, management companies, institutional investment managers and ancillary services, such as legal, actuarial and consulting services;

9 Why Barbados? Trusted Barbados figured on the OECD White List, separating it from other jurisdictions that are stigmatized as tax havens; Barbados completed its 3rd Financial Sector Assessment Program (FSAP) Review. Number of International Businesses already established in Barbados;

10 Why Barbados? Stability: Represented by a long-standing tradition of parliamentary democracy and a low crime rate; Infrastructure: A modern infrastructure with world class telecommunications and direct flights to London, Toronto, New York and Miami; Intellectual property protection that protects holders of rights in relation to trademarks, patents, designs, copyrights and plant varieties.

11 Our Competitive Advantage: ISM Our employees are highly trained individuals and we utilize modern technologies to ensure accurate trading, clearing and settlement of all securities; Large number of Double Tax Agreements (DTAs); High quality investment laws which are clear, transparent and modern.

12 Our Competitive Advantage: ISM Tax-efficient vehicles through which investors can conduct international business plus: no capital gains tax; exemption from withholding tax on dividends, interest, management fees, royalties or other income paid to nonresidents exemption from taxes on transfers of securities and assets to nonresidents, and; freedom from exchange controls.

13 The ISM Rules The ISM Rules are divided into 6 series: Series 1000 Membership Rules. Series 2000 Trading Rules. Series 3000 Clearing and Settlement Rules. Series 4000 Listing Rules. Series 5000 Continuing Listing Rules. Series 6000 Listing Sponsor Rules.

14 Where We Are Now and What is Next Participant Information Pack available for distribution Promotional materials are being finalized Internal processes and procedures are being finalized Road Show/Launch Local participants March 15 th, 2016 Canadian market Ongoing African mining industry Specific LATAM markets

15 Conclusion Taking Fresh Guard Significant strategic developments in the life of the BSE. These initiatives will have significant impact, not only on the continued operational success of the BSE but also on the International Business Financial Services Sector.

16 Contact Information Marlon Yarde CEO & General Manager Telephone: (246) /2 Fax: (246) Website:

17 Questions

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