February 12, 2013
The Bahamas' financial services industry has great potential in the areas of insolvency and debtor/creditor matters, according to Financial Services Minister Ryan Pinder. During his presentation at the recent 9th Annual Caribbean Insolvency Symposium, held in Miami, Florida, from February 7-9, Pinder spoke about the advantages in The Bahamas as it relates to asset protection and wealth preservation, as the jurisdiction has well-established trust laws and administration. More than 140 legal professionals participated in the event.
"I thought it was important to be a part of this panel to ensure that the lawyers, mainly from South Florida, were aware of the fairly recent revisions to some of our winding up and some insolvency legislation for international business companies (IBC). We also continue to inform international professionals of the advantages of doing business in The Bahamas," Pinder told Guardian Business yesterday.
"In the context of pre-insolvency, it's good to plan for your clients to take advantage of international asset protection and wealth preservation opportunities, and The Bahamas would be the preeminent jurisdiction with respect to trust matters in that regard." He continued, "In the context of pre-creditor/debtor issues and planning, we feel that captive insurance along with our asset protection trusts are good vehicles that we have, that legal professionals should consider when planning for insolvency and creditor/debtor relationships with your clients."
The financial services minister said promoting and developing the captive insurance market is another area that he focused on during his detailed presentation. "In that area, we recently amended legislation to make us consistent with international best practices," he shared. Timothy Ingraham, managing director at the Summit Insurance Company Ltd., recently revealed to Guardian Business that in the 1970s and 1980s The Bahamas was a big player in the captive insurance market, but has since lost ground.
However, he believes it's an area the local financial services sector must 'aggressively' pursue. "We lost our position when we changed our laws, so we are trying to recapture that," he explained. The three-day conference was hosted by the American Bankruptcy Institute.
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