The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Opposition’s deputy leader has called for greater Bahamian ownership of the financial services industry, which itself needs a greater focus on innovation.

“For now it appears that the industry will continue to see consolidations and job losses. The industry, being one that employs a significant part of the middle class, is an area where our focus and attention must be tangible,” said K P Turnquest.

His comments came after Ricard Tubau, Andbank’s global chief executive, last week said the Bahamas will likely suffer a 25 per cent contraction in the number of financial services industry players.

And Royal Bank of Canada (RBC), which indicated last November that it would be withdrawing from the private wealth management business across the Caribbean, has now sold the unit to Isle of Man-based SMP Partners.

“RBC has been trying to offload its wealth management division for a while now. To what extent it is a normal business decision versss one prompted by FATCA, compliance issues and or taxes remains to be seen,” Mr Turnquest said.

“In any event, it reflects the growing concern for our financial services industry overall as continued global standards shift, making it more and more difficult and expensive to operate in offshore jurisdictions.”

Mr Turnquest added: “While there are continuing opportunities for this industry, it calls for the focused attention of industry partners to innovate and explore new internationally attractive indigenous products and markets.

“It also points out the weakness in not having achieved a more locally-owned financial services industry. This must be the focus going forward as we continue to support and promote this industry, just as it must to be in the tourism sector.”