The Bahamas' financial services sector will continue to face significant challenges in 2015 amid tightening international tax regulations and increased competition from other offshore financial centers, according to Free National Movement (FNM) Deputy Leader Peter Turnquest.
Speaking with NB12, Turnquest said there is reason for the country to remain concerned about the continued threats to its offshore financial services industry, but he expressed optimism in the country's flexibility. He similarly stressed the need for improved human capital moving forward.
"As an industry, there is no doubt that we continue to have challenges. We're going to find more and more threats to the industry. Be that as it may, I believe that we have a wealth of talent in the country, though it does need to be supplemented by experts in niche markets.
"I believe that we have the skills available but we need to supplement and train to ensure that we are always at the cutting edge and able to meet whatever competition is out there," he said.
Turnquest, an accountant by trade and shadow minister for finance, felt that fund management continued to be viable, while suggesting that The Bahamas could expand its offerings though arbitration. Although many have touted arbitration as a key area for growth in the sector, Bahamas Institute of Financial Services President Dorcas Cox recently told Guardian Business that the country needed to keep its expectations in check regarding arbitration.
"Over the last couple of years we've developed a unique set of products and we need to continue to find specialized areas that we can exploit, including arbitration in commercial matters," he said.
Speaking broadly on the direction of the country's financial services industry in 2015, Turnquest touched on the recent appointment of Hope Strachan as the Minister of Financial Services, calling the government's decision "puzzling."
"It is somewhat puzzling why she would have been the one to be advanced given her lack of experience in the area of financial services. It obviously shows the lack of depth in the government when it comes to these matters. I felt it would have been more appropriate to reappoint someone like the current Attorney General, who has held that portfolio before," he said.

Strachan, who replaced Ryan Pinder, has defended the appointment, stating that she was committed to further shaping the country into a financial hub. She previously served as the Minister of State for Transport and Aviation.

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