Bahamas Branding Survey Highlights Both Strengths And Weaknesses

by Amanda Banks, Tax-News.com, London

30 January 2006

While the recent Bahamas financial services branding survey has reaffirmed the jurisdiction's status as a leading offshore finance centre, it has also highlighted certain shortcomings with the country's financial services offering which the authorities and private sector must endeavour to address, according to Minister of Financial Services and Investments, Allyson Maynard Gibson.

Addressing reporters at a press conference last week, Ms Maynard Gibson noted that The Bahamas' services appear to be better understood in certain sectors of the industry, namely private banking, trust and corporate services, and less understood in others, such as the insurance and investment funds sector.

The minister observed that the survey, undertaken by PricewaterhouseCoopers, the professional services firm, and completed by 220 individuals from a range of companies, identified a mismatch between The Bahamas' own perception of itself as a financial services centre, and how the island was viewed by the global investment community at large.

"One of the areas that did concern participants is that we think we have a great deal of expertise in certain areas and those responding to the survey didn’t agree," Minister Maynard-Gibson stated.

Nonetheless, the minister believed that the results reaffirmed The Bahamas’ status as a leading global player in the financial services sector.

Indeed, The Bahamas has been rated as the top international financial centre in the western hemisphere by the banking industry magazine, The Banker, a Financial Times publication, which awarded the accolade based on the jurisdiction's' attractive location, favourable tax environment, political stability, legal structure and regulatory framework.

However, Ms Maynard Gibson says that the survey has highlighted areas where there is still "room for growth," in The Bahamas' finance industry, notably by improving skills and in its efforts to communicate its strengths to the international investment community.

According to the Bahamas Financial Services Board (BFSB), which acts as the government’s investment promotion department, The Bahamas’ strengths lie in its skilled workforce, national sovereignty, respect for privacy and the rule of law, absence of direct taxation, modern legal framework, attractive lifestyle and location.

However, the BFSB has conceded that competition for business within the offshore world is becoming fierce, and that the Bahamas is perhaps falling short of the competition in certain areas. For example, while the Bahamas is a leader in private wealth management services in the Americas, it has failed to make inroads into other markets.

"While our message has been generally well received, it is also clear that the playing field is leveling out," the Board has acknowledged," noting that the competition to capture offshore business is "more aggressive, better funded and more visible."

Ms Maynard Gibson said that the government plans to consult with regulatory agencies and the private sector with a view to developing an action plan based on the findings of the survey.

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