The most avid consumers of these new asset classes consist primarily of a new client class known as 'active performance-driven investors.'

While the once-average wealthy investor might have sought out a private banker for his or her high-end investment advice, today's more versatile, knowledgeable and empowered HNWIs are inclined to take a broader view of their entire financial picture.

This broader view has in turn ushered in an era of financial services, where a comparatively small number of firms with a global footprint combine the intimacy of a financial boutique with the intellectual capital of a financial powerhouse.

Within this new and ever evolving investment environment, the role of the Securities Commission of The Bahamas (SCB) is critical to the healthy development of international financial services business.

Wendy Warren, BFSB’s CEO and Executive Director, says it is imperative that the SCB is empowered and resourced to properly govern the industry:

“It is critical for the safeguarding of the industry’s reputation that the SCB understands the business so that it can provide a business-friendly environment while recognizing and mitigating risks."

Fundamental to creating a business–friendly environment is legislation such as the Securities Industry Act (SIA) 2008, which is now in draft form.

“Capital markets have changed substantially since the introduction of the first SIA in 1999. We believe the introduction of the updated SIA is a critical step in moving the securities industry forward,” continued Ms Warren, going on to add:

“It will provide an important regulatory framework and clarity of policy, thereby increasing the attractiveness of The Bahamas as a place from which to conduct asset management and other investment related activities.”

BFSB’s SIA Working Group, which has been working closely with the Securities Commission on the draft bill, plans to organize a series of roundtable discussions with industry professionals for final input on the capital markets legislation when the Regulations are released.

An important consideration from the industry’s perspective is that the legislation supports good governance of the industry, rather than the legislation leading or constraining the development of business.

The SCB has actively supported the efforts of BFSB’s Working Group in helping the Securities Industry Bill move forward and both parties have expended considerable resources to get to this point:

“BFSB appreciates the considerable amount of time that has been devoted by our SIA working Group,” Warren went on, continuing further:

“We were pleased that 2008 saw the publication of the draft act but expressed concern that the regulations were not available to support the judicious review and implementation of the SIA at the earliest date. We will continue to support all efforts of the Government and the SCB to provide a modern and appropriate legislative framework and will work with all parties with this objective in mind. Timing is essential as financial market
developments will clearly cause many global - and perhaps local - players to reconsider business plans, with The Bahamas being a potential beneficiary of these developments. Clarity of the regulatory framework continues to serve as the trigger for releasing the starting blocks and one’s ability to enter the race," she concluded.