The Hon. L. Ryan Pinder Minister of Financial Services of The Bahamas

Transcription

1 The Hon. L. Ryan Pinder Minister of Financial Services of The Bahamas China Offshore Summit 2014, Shanghai, China The Bahamas, A Sound Financial Centre for Prudent Chinese Investors October 15, 2014 Introduction My name is Ryan Pinder, I am the Minister for Financial Services and Trade for the Commonwealth of the Bahamas and I welcome you to this China Offshore Summit. The Government of the Bahamas, and particularly the Ministry of Financial Services are pleased to be the Platinum sponsor for this event. Today I have the pleasure to speak to you about The Bahamas, what differentiates The Bahamas as a financial and business center from other jurisdictions, and why these fundamental characteristics of the Bahamas make the jurisdiction a sound financial center for prudent 1

2 Chinese investors. I also have the privilege to speak to you tomorrow in which I will provide you more detail on specific products, structuring and planning opportunities that The Bahamas can offer you and your clients. We are very pleased to be here in Shanghai to share with you the advantages of The Bahamas as a premier international business and financial services center. The Bahamas has held presentations in many major cities throughout the world. This trip however is different in that it represents a renewed commitment of The Bahamas as an established brand here in China. In fact, this is our third city having been to Hong Kong and Beijing before today. Today we are joined by representatives of the Government of The Bahamas through my ministry, the Ministry of Financial Services and the Ministry of Tourism, representatives from Baha Mar, the preeminent new hotel resort in the Bahamas, and of course by the private sector, specifically Leno Corporate Services, Deltec Bank 2

3 and Trust, Winterbotham Bank and Trust and Calendars Law Chambers. I invite you to not only visit our booth and obtain some information about The Bahamas, but to visit my colleagues and speak to them about opportunities in The Bahamas for you and your clients. The Bahamas An Overview The Bahamas is a stable and mature democracy with an economy based on services. After tourism, which accounts for approximately 60% of GDP, the financial services industry of The Bahamas is the country s second largest industry, accounting for almost 20% of GDP, and when combined with related business services, accounts for about 36% of GDP. The Bahamas has experienced eighty plus years of financial services history, a remarkable accomplishment. In fact, the Royal Bank of Canada first came to The Bahamas in around the year In the 1930s Roywes came to The Bahamas. 3

4 In the 1950s the first trust company was formed in The Bahamas, and in the 1960s the Swiss banks came to The Bahamas en masse. Today they provide the backbone for the most significant offshore private wealth and banking platform in the region. One very notable resident in the 1960s who believed in the long-term proposition of The Bahamas was Sir John Templeton, who was arguably the best stock picker of the last century. When he was looking for a place to relocate his business, Templeton Advisors, he said that The Bahamas ticked all the right boxes location, tax neutral, accessibility, availability of people and an idyllic environment to live in. In times of challenge this value proposition has been continually reaffirmed. Despite the organic origins of the financial services industry in The Bahamas, successive governments of The Bahamas sought to ensure that its development was more strategic, building on the comparative and competitive advantages that we, as a nation, possessed. As changes in the global landscape occurred, keen 4

5 practitioners, aided by the necessary Government legislative and policy updates, were able to ensure that The Bahamas was able to meet the legitimate needs of clients. With such a significant commitment to the growth and sustainability of an industry, The Bahamas has likewise taken a very serious approach to the preservation of the industry, to ensuring that it is regarded as well regulated and that its rules are consistent with international best practices. Our regulatory regime ensures your money and assets are safe in the Bahamas, that your financial privacy will be protected, that the Bahamas is a safe, secure jurisdiction for Chinese clients. The Bahamas an Independent Financial Center Today, in an international environment that seems to be plagued with volatility and unpredictability, the independence and sovereignty of the financial center provides international clients with what is needed to mitigate the political risk that seems to be 5

6 the single most significant risk factor for international investors and clientele. The Bahamas as a sovereign financial center, we make our own decisions for the best interest of our industry and our people, we are not dictated to, we do not have to seek the authority of others before we act, before we determine the way forward for our country and our industry. The Bahamas has been an independent country for 41 years, since 1973, demonstrating political and economic stability, a committed focus to the rule of law, ensuring a framework for international business and financial services. This is all a result of one key asset, our sovereignty. Diversified Offerings In order for the financial industry to advance and stay ahead of the constant change in the global arena, and be relevant in many different jurisdictions and markets, such as here in China, the industry itself must transform and be flexible. The Bahamas is an 6

7 international financial center that offers a diversified offering of product and services to support the products. In fact, this was the underpinning of our 10-year strategy in financial services, to cause the Bahamas to be a full service business center. I am firmly of the belief that there are limited prospects for financial centers that are generally commodity jurisdictions, focused on a single product and how many of those products or structures they can sell in the international marketplace. We have seen the international attack and name and shame game in recent years with a motivation of bringing down these jurisdictions. Public release of information on the clients of these jurisdictions has tarnished their image. Having financial centers that are full service offerings, who possess diversified product offerings is imperative for preservation and growth, and important to be a sustainable option to you and your clients here in China. Having a focus on not only on a wide 7

8 range of product offerings is important, but so is having the service providers to support the elements of your industry. Ultimately attracting physical presence operations, both from a commercial offering side, but also client side is fundamental to the sustainability of a financial center, and fundamental to the integrity of the jurisdiction you choose to place your assets. Attracting a wide range of products, services, and physical presence business operations demonstrates substance, credibility, demonstrates a business center, providing a platform with business purpose for the international client, like the Chinese client, who wants to combine their global business reach with personal wealth and financial planning. We in The Bahamas pride ourselves on having the most diversified operating entities in all sectors of the financial services industry: operating banks, operating trust companies, operating family offices, operating investment advisors and managers, operating fund administrators, operating captive insurance managers. All of 8

9 these operating companies, supporting our diversified product offering as a jurisdiction, demonstrates the credibility and substance of our industry, is proof that we are a legitimate and credible trade in services business jurisdiction for the global client, the Chinese client. Human Skills Development A jurisdiction and industry can have all of the items I have discussed, however, if you do not have the people to cause for all of these to function, both by Government and industry, then you are still vulnerable as an industry and do not offer your clients the best product and service, and ultimately vulnerable to survival. The domestic professionals in the industry are the true gatekeepers of the integrity of its financial operations, something we in The Bahamas take considerable pride in. To ensure that our industry has the capacity to protect itself, while maintaining growth, we in The Bahamas have an absolute 9

10 commitment to training and education. An industry is only as good as its professionals, and we claim to be leaders in preparing our professionals to be leaders in the industry. An example of this is The Bahamas Institute of Financial Services. The Bahamas Institute of Financial Services is a financial services institute with more than 30 years of education with internationally accredited programs. The Bahamas has had a long history of developing its domestic financial services talent and professionals, ensuring we have the best gatekeepers of our industry and the best persons to provide you with the services that are necessary for your clients. Public Private Engagement One of the most critical factors to the sustainability and progressiveness of the Bahamian financial services industry is the importance of the compelling public private partnership in The Bahamas. It ensures that the long-term proposition of The Bahamas is protected. The Bahamas Government recognizes the importance of the private sector as the engine of growth for the 10

11 sector. The private sector is a partner in national development, and the advancement of the financial services industry. The best and most persuasive example of private public partnership in the advancement of the industry is The Bahamas Financial Services Board. The Board was started in 1998 as a partnership between Government and the private sector for the continued development of the industry, reflecting the immediate opportunities and needs of the private sector. All of the above helps to ensure that the sector is stable and participants and clients have no surprises. Many countries will put in place policies that are subsequently defeated by huge public outcry. Then they say well the system works. Well I don t agree. The system works when consultation is continuous so that it actually informs policy. In this way there is always certainty even if there is not always agreement. Public sector and private sector operate in lock step. 11

12 In The Bahamas this is a mutually beneficial relationship private sector has influence and ability to shape business friendly policies. Public sector benefits from the experience of industry and is able to make policy decisions using the best information available to it as opposed to guessing. The engine of cooperation is hard at work in The Bahamas and this also extends to the regulatory environment as well. The result of continued and sustained public private partnerships in The Bahamas financial services industry is the best platform available for you and your clients. This partnership extends beyond domestic private sector, in practice the partnership is inclusive of international private sector participants. In this context we welcome you, the financial services private sector of China to partner with The Bahamas in the continued innovation of the industry, innovation of new product development, and innovation of services support. 12

13 This is a fundamental advantage of The Bahamas as a financial and business center, one where we have a proven history. As a sovereign and progressive business center, through our public private partnerships, we have the ability, and more importantly the willingness to customize products, create special vehicles for particular jurisdictions. We have the commitment to do this for you and your clients, for the Chinese clients, to identify a particular planning advantage, and design a product for the Chinese market. We look forward to additional collaboration with you on this opportunity of creating a new product. We have done it before, created special products for special markets, we created fund and entity products for the Brazilian market, we are working on a specialized product for the Mexican and Spanish markets, and with your collaboration, we will create a special and unique product for the Chinese market that provides for a distinct advantage that can t be found in another jurisdiction. We can achieve this because we are nimble, we are progressive, and 13

14 most importantly, because we are an independent and sovereign country. Residence and Doing Business in the Bahamas A direct result of the innovation from private public partnerships is the development of annual and permanent residency programs of The Bahamas, inclusive of residency programs that support tax certificates. This is particularly important to ensure reliable, definitive rights to live and do business in The Bahamas. If you want to live or have the right to live in The Bahamas there are many options to become a resident. Annual residence requires no minimum investment but just an application. Annual residency can be requested for up to 5 years and allows for you to lawfully live in The Bahamas without investment. The second option permanent residence allows you to permanently reside in The Bahamas with a minimum investment in a home of US$500,000. This is a very popular option to clients looking to have a residence 14

15 option that is permanent and a 35-minute flight to Florida in the United States of America, without the tax consequences of living in the United States, or having a Green Card. There is also an option that allows you seek permanent residence and have the right to work in your own business from within the Bahamas, linking the business interest of the client, with the desire to have a component of their business interest in The Bahamas, and the right to live lawfully with no restriction. This is a particularly innovative option for the entrepreneur with a global reach, one who wants a base to access the western hemisphere, one that wants a tax neutral, sophisticated platform to operate, one who wants the platform of The Bahamas, the Chinese entrepreneur looking for business expansion globally, and a jurisdiction that can manage their wealth in a safe and secure environment. In conclusion The Bahamas offers options for your business, your wealth and your life with a deep infrastructure of dedicated professionals to serve you. 15

16 We have examples of the commitment to residency and economic development. The developer of the Baha Mar resort, Mr. Sarkis Izmiralian, and his family came to the Bahamas as a place to live and manage their personal wealth. He is now the developer of a US$3.5 billion resort project in The Bahamas. Another example is the United Kingdom professional, Joe Lewis. He, likewise, moved to The Bahamas, acquired residency, utilized The Bahamas for wealth planning, and now is the developer of a US$1 billion 5 star resort and real estate development. Likewise we have persons such as golfers Adam Scott and Tiger Woods, country music star Shania Twain and James Bond actor Sean Connery who have all chosen The Bahamas as their residence, and in many instances their jurisdiction of investment and financial planning. The Bahamas, through its residence programs, through its investor friendly climate, is open for you to likewise call The Bahamas your home for wealth planning, residence and investment and business interest. 16

17 China Bahamas Cooperation Before I conclude, I want to speak about the established linkages between The Bahamas and China, demonstrating the confidence that the Government and business interests here in China have in The Bahamas. First of all, The Bahamas and China have recently signed a visa waiver agreement, which allows Chinese nationals to travel to The Bahamas for up to thirty (30) days without a travel visa, and also allow Bahamian nationals to travel to China without a visa for the same amount of days. This is a significant accomplishment to build the linkages between our countries. We have also experienced significant investment from China in The Bahamas. The most obvious example is the development, which is the single largest hotel development in our hemisphere, valued at $US3.5 billion. This development is financed by the China Exim Bank, and is being built by China Construction. This beautiful and landmark development is demonstrated outside with 17

18 a model and video presentation. I encourage all of you to witness the evidence of the cooperation and confidence between China and The Bahamas in real form. Business interests, Government commitment and economic development between our two countries. Diplomatically the Chinese Government has had an embassy in The Bahamas for decades, and has contributed to the social promotion and infrastructure of our country. Dozens of Bahamian students each year attend university in China on the invitation from the Chinese Government. Through grants and development loans, China has contributed to the modernization of our roads, our ports, and has given our country the gift of our national stadium. The diplomatic, business and tourism linkages between our two countries are great. Through events like this one, by demonstrating the advantages and you becoming more familiar with the full service platform of The Bahamas, we will build on our great accomplishments between The Bahamas and China, and develop 18

19 our financial platform together, as partners, as friends. Conclusion I want to thank you for allowing me to present the platform of the Bahamas, to illustrate what differentiates The Bahamas as a financial and business center from other jurisdictions, and why these fundamental characteristics of The Bahamas make the jurisdiction a sound financial center for prudent Chinese investors. The Bahamas and China and Chinese businesspersons have a successful partnership. We as a Government and as an industry are committed to its further growth and development. My presence here as the Minister of Financial Services and Trade is evidence of our commitment to you. I invite you to learn more about The Bahamas, understand our diversified business and financial center platform, speak with our private sector who is here, and join us in this journey, in this partnership of growth and development. I look forward to tomorrow where I will speak in more detail about some of our product offerings for planning and structuring for you and 19

20 your clients. Thank you. 20