The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Scotiabank (Bahamas) managing director believes its wealth management business can sustain annual growth rates “north of 20 per cent”, with this segment and corporate commercial clients expected to be its two growth generators for 2013.

Disclosing that the Bahamas-based Scotia Private Client Group had enjoyed “double digit” growth of 15-20 per cent in the past year, its third year since being formed, Kevin Teslyk said its status as a relative newcomer and ability to draw on global strategies executed by the Canadian conglomerate would ensure further success.

“We can sustain that growth rate and better, north of 20 per cent,” Mr Teslyk said, “because we’re new to the game and have a lot of investment solutions that work for us outside the Bahamas that we need to offer in the Bahamas.

“Our wealth management business performed particularly well [in 2012], with double digit growth sustained throughout the year. It’s one of the areas we’re looking to leverage and invest in.”

Mr Teslyk acknowledged that as a relatively new business line, Scotiabank (Bahamas) private wealth management unit was likely to enjoy relatively high growth rates during its formative years, given that it was starting from a low base. He described the unit as being in its “adolescent growth stage”.

Mr Teslyk said Scotia Private Client Group was targeting both the local market, in terms of affluent Bahamians and emerging wealth, and the international market for clients.

He explained that international clients were those who typically bought a second home in the Bahamas, and used this nation “as a hub” for their business activities - receiving profits and dividends, and investing and reinvesting capital.

Despite the emphasis on Tax Information Exchange Agreements (TIEAs) and ever-increasing regulatory/compliance standards, Mr Teslyk said there remained “lots of compelling reasons for individuals, entities to be attracted to this jurisdiction”.

Pointing out that the Bahamas and other international financial centres were constantly having to reinvent themselves, and identify new niches in which they could develop a competitive advantage, Mr Teslyk said TIEAs were now incorporating the features of double taxation agreements - such as the deal struck between the Bahamas and Canada.

The key, the Scotiabank (Bahamas) managing director added, was how this nation and others “leverage” that to attract investment flows, industry and trade.

Calling for international financial centres to specialise, Mr Teslyk noted the Cayman Islands’ reputation as the leading funds domicile, the British Virgin Islands’ status on company formations, and Bermuda’s position as the insurance hub.

“What the Bahamas and other jurisdictions need to do is not be all things to all people,” Mr Teslyk said. “It’s much more the right place, the right time and the right clients.”