The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Swiss bank that is selling majority control of its Bahamian subsidiary has told this nation to focus on regulatory and ease of doing business "efficiency" to improve its financial centre status.

A SYZ Group spokesperson, responding to Tribune Business questions, said "proactive engagement" with other countries and international regulatory bodies was also critical for The Bahamas to secure its position as an international financial centre (IFC) that will sustain.

"Any country that tries to secure its status as a financial centre has to ensure that it has efficient business, compliance and regulatory procedures in place, and that it proactively and frequently engages with its foreign counterparts to maintain friendly relationships of co-operation," the spokesperson added.

The Swiss-headquartered institution, which is selling majority ownership of SYZ Bank (Bahamas) to a management buyout, led by local executives, Daniel-Marc Brunner and Werner Gruner, added that this nation's financial services model is shifting towards niche, specialist boutique firms that are better equipped to respond to change and use its product menu.

SYZ Bank (Bahamas) will be renamed Nexor Asset Management once the deal is approved by the relevant Bahamian regulators, and the spokesperson said: "We believe this new set-up ultimately gives Nexor more freedom to create a wider range of customised investment and risk management solutions for demanding high net worth individuals and families.

"The Bahamas remains a top financial services jurisdiction, and is experiencing a shift in its financial services business model. Boutique, highly specialised investment firms are growing and attracting business, which we welcome. These firms harness, among other things, the simple and effective Bahamian financial structures, such as smart funds or robust inheritance planning tools, like Bahamian trusts."

SYZ Group will retain a minority equity ownership in Nexor Asset Management going forward, which the spokesperson said was based on its desire to retain a presence in The Bahamas and belief in the latter's business model.

"Even if SYZ Bank will not operate with a banking license in The Bahamas any more, we would like to continue to be present in the market and believe in the business model of Nexor," they added. "This is part of the SYZ Group's ongoing strategy to centralise custody in Switzerland.

"Nexor clients will continue to benefit from the robust banking platform of the SYZ Group in Switzerland for the safekeeping of their assets. Nexor will be able to offer clients even more options and flexibility, while additionally giving them the possibility of consolidating different banking relationships under one single, recognised, independent asset manager based in The Bahamas.

"Many clients live either in The Bahamas or in the same time zone, and want to keep the existing relationship they have built with our local team over the years. They have worked with Daniel-Marc Brunner, Werner Gruner and their team for years, and have built trust in them and the services they provide."

The SYZ Group spokesperson said the deal would cause virtually no disruption to existing Bahamas-based staff or their clients. "Most of the staff will move to Nexor," they added. "We expect most clients will remain with Nexor.

"Nexor will be able to provide traditional wealth management services not only for assets that clients have with the SYZ Group, but also for assets they have with other banks locally as well as internationally."

While declining to provide details on the transaction, such as purchase price and the assets under management involved, the spokesperson said: "It did not take long to come to an agreement as both parties share the same values and want what is best for their clients. It was important to adapt the strategy to the current changing environment in order to remain competitive.

"As we are transforming the bank into an independent asset manager and not winding it down, we are optimistic that it will be a smooth transition. Both Daniel-Marc Brunner and Werner Gruner have served in the financial services industry in The Bahamas for over a decade and are well known within the industry."