CashNews.co
NASSAU, BAHAMAS — Attorney General Rayan Pinder has emphasized the need for The Bahamas to innovate and attract new business in its financial services sector, highlighting that imminent reforms to the UK’s resident non-domiciliary regime will affect many ultra-high-net-worth individuals and create opportunities for tailored solutions.
Speaking at the Association of International Banks and Trust (AIBT) Companies Nassau Conference on Wednesday at the Baha Mar resort, Pinder highlighted the importance of identifying disruptions in markets that could allow The Bahamas to innovate and fill gaps to attract new business.
“I see an opportunity in a familiar market: the United Kingdom. Their former administration, echoed by the current one, seeks to significantly reform the resident non-domiciliary regime. This will materially affect thousands of ultra-high-net-worth residents in the UK, who will be reassessing their residency status and wealth structures in light of upcoming changes. We must pay close attention to the UK budget presentation at the end of October and the reforms it will entail,” said Pinder.
He noted that The Bahamas has recently reformed its permanent residency laws, enabling individuals to obtain permanent residence by purchasing a 10-year, zero-coupon $1 million bond from the Central Bank. This he noted provides greater flexibility for those seeking residency in The Bahamas.
“We need to explore what additional product reforms may be necessary and how we can leverage our existing offerings. As we have done in the past, it’s crucial for the Bahamian government, the financial services industry, and the London legal community to collaborate in developing solutions and products. We must invest in travel to London, engage with practitioners, and work to attract that business to The Bahamas,” he stated.
Pinder described this as an opportunity to apply proven strategies and open new markets for clients. “This could represent not only a residency opportunity but also a chance for wealth plan restructuring. Some trustees have already indicated that they are witnessing trust restructurings in The Bahamas due to the anticipated changes in the UK’s non-domicile regime. We must remain alert, creative, and proactive in our approach to innovation.”
He also pointed out that other jurisdictions are undergoing significant domestic reforms that disrupt the status quo. “We must work together to identify these jurisdictions, explore opportunities for The Bahamas, and proactively develop solutions for potential new clients,” Pinder said.
Looking ahead, Pinder noted the upcoming STEP LATAM event in Buenos Aires, Argentina, where the government has chosen to be the lead sponsor. He expressed hope that many from the financial services industry would attend to explore opportunities in Argentina. “Collective commitment to market exploration and analysis is essential for future-proofing our financial services industry,” he noted.
Pinder stressed that the government is prepared to pursue cooperative policy innovations, whether through new products, new markets, or legislative initiatives, to sustain and grow the financial services sector. He acknowledged the need to enhance the ease of doing business and address longstanding challenges, such as the operations of the Registrar General, which serves as the government’s interface for structuring and transactional matters.