The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

A Bahamian financial services executive yesterday said he expects a “proliferation” of new locally-owned broker/dealers and investment advisers operating in the fintech (financial technology) space.

Andrew Rolle, the Bahamas Investments and Securities Business Association's (BISBA) newly-elected president, told Tribune Business: “Fundamentally, the Bahamas has reached a point in its economic journey where more Bahamians are interested in leading investment projects by way of investment fund vehicles, and we believe a forum is required for that. BISBA will be that forum.

"One trend in the industry is the recent proliferation of fintech broker dealers licensed by the Securities Commission of The Bahamas who specialise in ‘Contracts for Difference' (CFDs), where Bahamians are being employed as executive directors and compliance officers. This year will see further registration of these businesses in addition to more Bahamians establishing their own investment firms.”

CFDs are financial instruments called derivatives. They involve contracts between two parties where the buyer pays the seller the difference between the current value of an asset and its value at the time the deal is executed. If the difference is negative, the seller pays the buyer instead. They allow investors to trade in the direction of securities over a short-term period, and are especially used in foreign exchange and commodities transactions.

Meanwhile, asked about his plans for the Association, Mr Rolle said: “Essentially, BISBA aims to create a community of investment fund managers and broker/dealers where we can network and host seminars/events in relation to specific issues related to the asset management industry."

He said these include "starting investment funds; raising capital; investment strategies; investment trends; exchange control issues for local asset managers; the digitisation of asset management in addition to digital asset service providers now regulated under the new DARE (Digital Assets and Registered Exchanges) Act; and collaboration with our Caribbean and regional counterparts".

Mr Rolle added: “In addition to hosting networking events and webinars, we plan to create free membership for university students at UB (University of The Bahamas) and abroad so they can participate in events and learn more about the opportunities in this niche area of the sector.

"We believe it is important to educate the public about this area of the financial services industry so we can inform public policy and create opportunities for Bahamians. The pandemic had minimal impact on this sector, as fund managers and broker/dealers can seamlessly service clients as long as Wi-Fi is available which, in effect, has proven its sustainability.

"Working from anywhere will increasingly become the norm, and the asset management sector is a perfect example of the same. In 2021, BISBA will establish its membership base, conduct several informative webinars and appoint a director from our university membership who has won a competition that has yet to be developed."