The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamas is losing competitiveness in the investment funds sector, but the minister of financial services yesterday said that this nation can still ascend to the market forefront as it is "ripe" for reentry.

Speaking after reports surfaced that CITCO Fund Services (Bahamas) was set to exit this jurisdiction with the loss of around 40 jobs, Ryan Pinder said that, historically, the Bahamas has not been as strong as its international financial services competitors in the investment funds sector.

Mr Pinder said: "We have as a jurisdiction not been as strong as some of our competitors, like the Cayman Islands, in investment funds, hedge funds and the like, but in my opinion it's certainly a marketplace that is ripe for re-entry and in redefining the Bahamas as a jurisdiction.

"Historically, I think it may have been more of a private sector focus. For instance, we are much stronger in private banking than the Cayman Islands are, and most of our competitors. That has been an industry choice over the years.

"I think we should refocus all along the financial services industry to promote all products that we can be active participants in to grow the industry. It's a matter of setting policies, and setting priorities, between the Ministry of Financial Services and the private sector on areas within the industry to compete and aggressively pursue. I am a proponent of relaunching or redeveloping the funds market of the Bahamas. We can be at the forefront of that industry with the proper focus and policies that promote the industry globally."

CITCO Fund Services (Bahamas) potential exit from the market is not surprising, as the Bahamas has experienced a steady trickle of departures and shutdowns in the investment funds market over the past decade, with the number of funds domiciled here also declining. Calls to Dirk Simmons, managing director at CITCO Fund Services (Bahamas), were not returned yesterday.

Mr Pinder said his Ministry will be preparing a strategic plan for the financial services industry, with development of the funds sector a key component.

Mr Pinder said: "We will be preparing a strategic plan for financial services within the Mnistry with both input from the private sector but, certainly, what we feel is the direction of the industry with a focus to expansion and to Bahamian participation. Certainly, the development for the funds industry is going to be a key component of that."