The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The opposition’s shadow finance minister yesterday urged “regional regulators to unite” and ensure external forces play no role in “determining the fate of our local banking systems”.

Chester Cooper, pictured, also deputy leader of the Progressive Liberal Party (PLP), told the House of Assembly that CIBC’s pending sale of its FirstCaribbean business to Colombian-based GNB Group “raises the strategic question of whether regional regulators ought not to unite and ensure that regional players, who are loyal to the Caribbean region, be given first opportunity to acquire these banks and these portfolios.”

He added: “This might be an occasion for CARICOM to assert itself, supporting regional banks. If we continue to allow outside players to determine the fate of our local banking systems, without the opportunity to chart our destiny, then we might as well have remained colonies.”

Pointing out that “Bahamians have taken control of the insurance sector”, in which he owns BAF Financial, Mr Cooper also said this was “achievable” in the banking sector as well.

Arguing that “it makes no sense” for Bahamians to have to “wait for loan approvals from Colombia”, Mr Cooper he added: “At the very least we should have sought consultation with our Caribbean counterparts to see how best to marshal our resources and keep this wealth and these banks within CARICOM.”

Turning to the Investment Funds Act changes, which were debated in Parliament yesterday, Mr Cooper said: “This Bill is necessary in maintaining the country’s position, be it ever under assault, in the global financial services industry.”

While backing the amendments as non-controversial, he did, though, question why the government was so swiftly seeking to change legislation passed as recently as March 2019. He said: “It is regrettable that we spend time here today correcting or amending something that perhaps should have been caught in the drafting stage.

“This Bill, as we understand it, does three main things. It amends the substantive Act to strengthen the supervisory powers of the Securities Commission of The Bahamas. It clarifies the role of the investment fund administrator and investment manager, including licensing and registration of same, and it clarifies the obligation of the custodian.”

Mr Cooper said. “This Act is a good thing for an industry in The Bahamas often beset by bad news. It ensures compliance with the EU’s (European Union) substance requirements, among the EU’s often onerous and shifting rules.

“It positions us to be more competitive. Our service providers in the institutional fund services will benefit in a premium way as would lawyers, accountants and directors, whether the actual administrators are in New York, Connecticut or London.”

However, he added: “The opposition remains concerned about the application of different rules for some, and we join voices with our counterparts in the international financial centres in a call for a level playing field and the discontinuance of moving of the goal post.”

Referring to The Bahamas’ recent appearance on national blacklists, Mr Cooper said: “We take particular offense to Holland and France, both members of the EU, acting unilaterally outside of the EU’s own rules with The Bahamas having already complied with the EU mandates.

“We wholeheartedly reject this attempt to tarnish the reputation of The Bahamas and our financial services industry, which we have worked so hard to grow, protect and comply with reasonable international norms. The process of these two countries, in particular, lacks fairness, transparency and credibility.”

Calling for unity, Mr Cooper said: “We believe if we all work proactively to negotiate, network and lobby international partners with assistance with regional counterparts where necessary, we can stay ahead of the curve of the existential threats.

“Maintaining a presence in the appropriate international bodies, and using our embassies and consulates effectively, is also key. The key to our survival in this space, though, will be building capacity, honing expertise, and implementing common sense regulations and laws like this one.

“Further, the government must earmark specific resources, along with the industry and the regulators, to market The Bahamas in the institutional market and constantly promote. I would recommend that a percentage of fees from industry participants be earmarked to innovation and proactive, progressive industry support.”