The Tribune

By ANNELIA NIXON

TRIBUNE Business Reporter

anixon@tribunemedia.net

THE BAHAMAS is seeking to expand its financial services business by adapting its legal and regulatory framework to meet changing demand, a Cabinet minister has confirmed, as he promotes the jurisdiction in Brazil to deepen ties with a key market.

Senator Jerome Fitzgerald, minister of economic affairs, said the two countries have developed a “strong” financial services relationship over the years, with Brazilian market practitioners having influenced several of The Bahamas’ legislative and policy decisions.

Speaking in São Paulo, where he is participating in the Society of Trust and Estate Practitioners (STEP) Latin America conference, Mr Fitzgerald said the Government is focused on ensuring the jurisdiction remains nimble enough to respond to rapid changes in Brazil while identifying opportunities for further growth.

“We are trying to position ourselves to meet some of what we consider to be not only the geopolitical changes, but in Brazil, as you all know, things change even quicker,” he said.

Mr Fitzgerald highlighted recent legislative developments involving The Bahamas’ new usufruct product, which is targeted at clients from civil law jurisdictions such as Brazil, plus mergers and segregated accounts companies as examples of efforts to position this nation to better serve evolving financial services demand.

The minister said the Government’s approach is aimed not only at responding to challenges facing the industry, but also at creating opportunities for Bahamian financial services providers to capture additional international business.

The Ministry of Economic Affairs said The Bahamas’ financial services industry is “open to expanding its product and service offerings” to meet evolving demand from Brazil, which it identified as one of the sector’s key markets.

Mr Fitzgerald and Bahamian financial services professionals are in Brazil this week to co-sponsor the STEP Latin America conference. The minister is also holding one-on-one meetings with major Brazilian operators as he examines ways to “revolutionise and expand” The Bahamas’ financial services industry.

A round-table luncheon involving Brazilian and Bahamian stakeholders, hosted by the Bahamas Financial Services Board (BFSB), is also part of the conference.

The Brazil push comes as The Bahamas faces increasing competition among international financial centres and seeks to ensure its legislative framework keeps pace with changes in global wealth management and structuring.

Mr Fitzgerald described Brazil and The Bahamas as “probably best partners” in the financial services industry, stressing that the relationship has developed over many years. He said consultation with the Brazilian market and practitioners has been an important part of The Bahamas’ policy-making process.

“Most of the legislation or policy positions that we have taken have either been in direct consultation, or discussions, or advice from the Brazilian market and the practitioners here,” Mr Fitzgerald said.

For The Bahamas, the commercial opportunity extends beyond simply maintaining existing Brazilian business. The Government’s current outreach could help identify new products, structures and services that Bahamian firms can offer to attract additional Brazilian clients and capital.

Mr Fitzgerald said the Government recognises that periods of change can also create opportunities for the financial services sector.

“And so we are happy that we’re able to be nimble enough where we can adjust,” he said. “But also, from the Government standpoint and from my standpoint as minister, we understand wherever there are challenges, there’s also opportunities.”

The minister’s meetings with Brazilian financial sector stakeholders are expected to provide further insight into where demand is shifting, and what changes may be required for The Bahamas to capture more of that business.

The broader test for the sector will be whether these reforms and new offerings translate into measurable increases in Brazilian clients, assets and investment flowing through The Bahamas’ financial services industry.