Minister of Financial Services Ryan Pinder has argued that the proposed Investment Condominium (ICON) Bill will cause The Bahamas to become "dominant" in the funds sector, while attracting substantial investment from Latin America.
Presenting the second reading of the bill in the House of Assembly yesterday, Pinder claimed that the legislation will further increase The Bahamas' "visibility" in Brazil and Latin America.
"The ICON Bill is an innovative and dynamic piece of legislation and one that ensures we remain relevant as a funds jurisdiction of choice... It is another example of The Bahamas' never-ending commitment to be first-in-class in the provision of market responsive regulated and sophisticated products," said Pinder.
The ICON Bill was modeled after the success story of the Brazilian condominium, which holds over 13,000 hedge funds. The bill would provide an alternative legal structure for investment funds that is inherently familiar to those in Brazil and other Latin American countries, and would be fully compliant with Brazilian laws in an attempt to target Brazil and Latin America's lucrative investment funds market.
Minister of State for Finance Michael Halkitis also strongly supported the bill, stating, "The development of this legislation represents a further step...in keeping the Bahamian financial services jurisdiction abreast of the competition".
Although the legislation was modeled after the Brazilian ICON, Pinder hoped that the Bahamian ICON would attract business beyond Brazil.
"We are extremely encouraged by the interest that has been shown in the investment condominium from Brazil. However, this product is not only Brazil targeted...keen interest has been shown from advisors targeting Mexico and Peru as well as Chile.
"The regulators and the financial services community have begun in earnest to initiate local awareness of the ICON and will continue to educate and inform end users over the ensuing months and years," said Pinder.
The Bahamian ICON legislation allows for the conversion of an existing Bahamian international business company (IBC), exempted limited partnership (ELP) or unit trust (UT) into an ICON.
Pinder earlier described the ICON as a "revolutionary step" in developing the Bahamian financial services sector.
However, Montagu MP Richard Lightbourn took issue with the bill, arguing that the House had not been given enough time to give it proper consideration.

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