The country's financial services industry officially reached a turning point yesterday after The Bahamas received a category "A" rating from the International Organization of Securities Commissions (IOSCO). Financial Services Minister Ryan Pinder called the rating truly "a landmark decision" that will open the door to doing business in other jurisdictions, particularly in Latin America. "It now puts us not only on an even playing field but puts us at a competitive advantage to many of our competing jurisdictions.
Achieving this status now allows us to bring all of that hard work and dedication to raising the profile of The Bahamas as a preeminent financial center, if not in this hemisphere, the world, and brings that business to fruition. Now we have no regulatory obstacles from those Latin American countries," he explained. "We are recognized as a preeminent jurisdiction for international best practices in securities regulation, removing many of the regulatory impediments to doing business in those jurisdictions. We have seen in recent months tremendous interest from clients throughout Latin America."
Pinder, along with Minister of State for Finance Michael Halkitis, made the historical announcement yesterday at the Ministry of Finance. The financial services minister pointed out how the process began with the passing of the Securities Industries Act 2011. As a result, The Bahamas was able to apply for IOSCO's "prestigious position on Appendix A", and once accepted, signed a multilateral memorandum of understanding (MMOU). "This is truly a landmark decision not only for the financial services industry but The Bahamas.
This announcement is proof and demonstrates the tight cooperation that we have developed not only in the private sector but also with the regulators and central government. The process started with the passing of the Securities Industries Act a little over a year ago today. Then the regulators marched on to make sure that everything was in place so that we ultimately achieve IOSCO A status," said Pinder. Halkitis added that the IOSCO upgrade would help to facilitate the development of capital markets. He believes that this is all in keeping with the government's commitment to ensuring that those in the financial arena maintain high regulatory standards.
"For the industry participants that the commission regulates, those licensed to deal, manage, arrange deals or advise on securities trading discretionary management and advising representatives, the investment fund administrators and the financial and cooperative service providers, I hope this announcement reinforces your commitment to maintaining the highest regulatory standards in your efforts to fulfill the mandated role of creating and promoting conditions that facilitate the orderly development of the capital markets." Chairman of the Securities Commission of The Bahamas Tonya Galanis was also on hand for Thursday's announcement. IOSCO was established in 1983 as the international standard setting body for securities regulators around the world. It has 204 members and currently regulates more than 95 percent of the world's regulatory securities market. The Bahamas has been a member of IOSCO since 1996.
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