From Features

Bahamas Report 2022

Despite regulatory, political and economic pressures, The Bahamas continues to be a world contender for international financial services. In this special focus, we look at how The Bahamas demonstrates resilience and innovation in the wealth management arena.

The COVID-19 pandemic caused immense disruption to business throughout the financial services industry, both in The Bahamas and abroad. Dr. Tanya C McCartney, CEO of the Bahamas Financial Services Board, discusses how the jurisdiction's financial services industry proved resilient throughout the pandemic, staying steady in rapidly changing circumstances. Furthermore, Antoine Bastian from Genesis Fund Services details how fund administrators took the pandemic in their stride by adapting to the ‘new normal’ and digitising operations seamlessly.

The pandemic has brought much uncertainty into wealthy people's lives and many HNWIs are anxious to plan for the future of their wealth now more than ever. Sharmon Ingraham from Higgs & Johnson explains how good estate planning can ensure the smooth management of resources and prevent discord within the family.

In addition, our comprehensive sector focus concentrates on the jurisdiction’s key industries. Carl R. Culmer Jr from the Insurance Commission of The Bahamas highlights how the insurance industry continues to demonstrate its financial resilience to economic shocks. Elsewhere, the strength of the jurisdiction’s digital asset industry is demonstrated in an article by Alexander M. B. Christie and Vanessa M. R. Hall from McKinney, Bancroft & Hughes.

2022 has been a challenging year for the international investor, following the pandemic and political unrest caused by the Russia-Ukraine crisis. Chris Illing from ActivTrades Corp. argues that investors in commodities, however, have done well. In addition, Dr Iyandra Smith Bryan from Quantfury Trading Limited demonstrates how tokenisation creates new opportunities for raising capital, heightens access to liquidity in a cost-effective manner, and boosts access to new markets in an efficient and more readily accessible way.

Strong levels of regulation and compliance are key to the The Bahamas’ financial services industry. Christina Rolle from the Securities Commission of the Bahamas considers how first-class regulatory innovation can be crucial to a jurisdiction. In addition, Wendy Warren from Caystone Solutions discusses why the Bahamas’ location, regulatory environment and forward-looking legislation are gaining strength and acceptance as core compelling attributes of the jurisdiction.

The Bahamas

Fearless But Pragmatic Evolution Financial Centre

Dr. Tanya C McCartney
CEO and Executive Director, Bahamas Financial Services Board

The world is emerging from a challenging period. The global pandemic dealt a harsh blow to tourism-dependent economies like The Bahamas', and many questioned whether there would be a domino effect throughout other industries.

While many industries were impacted, financial services, as our second largest industry, proved resilient throughout the pandemic, staying steady in rapidly changing circumstances affected by changes in service delivery channels and the ongoing transformation of the regulatory landscape. Today, we remain a major global destination for wealth management.

On a per-capita basis, no other country can match the level of expertise teeming within our borders. We have an entire cadre of legal, accountancy, trust, banking, and insurance professionals working with and for financial services firms of all sizes and specialisations in the planning, creating and managing of our world-class offerings. Our in-country expertise is a major driving force behind our success, serving as the springboard that propels our financial services sector through the best and worst times.


The Future Of Entrepreneurial Finance

Dr Iyandra Smith Bryan
Quantfury Trading Limited (Nassau, The Bahamas)

As early as the 2000s, entrepreneurs have sought innovative and dynamic methods of raising capital from the public. We have seen this evident in the surge of crowdfunding platforms attracting professional and retail investors that have been at the centre of digital transformation.

At the height of the emergence of digital transformation having an incredulous impact on entrepreneurship financing, tokens have emerged allowing entrepreneurs to receive capital easily, quickly, and efficiently.

Entrepreneurs are able to raise capital by issuing tokens to token holders in a similar way as a company would issue shares to its investors, in exchange for consideration (the token price). While tokens customarily are not representative of actual ownership in a company, token holders often seek to acquire tokens in anticipation of such tokens increasing in value post their acquisition, and later being sold on a secondary market.