The Tenth Anniversary of establishment of the Financial Services Commission was marked by an “Industry Day” held at The Viceroy Anguilla on Thursday, 20 February. Over one hundred persons drawn from all sectors of the financial services industry attended the gathering entitled “Vision Critical”, a title chosen both to reflect continued discussion of issues raised at the “Vision Day” sponsored by the Anguilla Financial Services Association, the Government of Anguilla and Anguilla Finance Limited in October 2013, and the critical importance of the industry’s health to the territory’s economy.
Keynote speakers were the Governor of Anguilla and the Chief Minister. In her opening remarks, Governor Scott recalled saying at “Vision Day” that “the international landscape that gives context to the operations of Anguilla’s financial services sector is changing for good” and observed that “the irreversible trend I spoke about then continues”. Highlighting the issue of a central registry, Governor Scott commented: “the Government will be conducting a public consultation on whether Anguilla should hold a central registry on those who benefit from companies and trusts and whether this information should be made available to the public” and urged all industry members to contribute to the process.
The Chief Minister observed that: “As the industry grows, so will its contribution to our GDP and Anguilla’s overall economic development. To do this, each and every stakeholder must play their part. We will endeavor to create an environment where innovation and creativity is rewarded.” Prefacing similar comments from speakers who followed him, the Chief Minister said: “…the tide is swiftly turning against secrecy and minimal disclosure….In the end, business will go where the talent is and we have to make sure that Anguilla is where the talent is.” To help achieve this result, the Chief Minister urged that industry offer internships to high school graduates and get them to see financial services as a viable career alternative.
The program brought to the podium speakers from both Anguilla and abroad. Robert Mathavious, Managing Director of the British Virgin Islands Financial Services Commission, succeeded in immediately engaging the audience with a presentation entitled “International Financial Centres in the Eye of the Hurricane” in which he outlined using the “calm” of the “Eye” to develop strategies for use in dealing effectively with initiatives which often have the effect of promoting the self-interest of the financial services industries of much larger economies by targeting the activities of centres such as the BVI and Anguilla. The key strategy is for smaller centres to be nimble enough to identify niche markets and deliver superior quality of service to them. Among other things, this will require service providers to have appropriately qualified professional staff and the jurisdiction to have an appropriate legislative and regulatory framework.
At the Commission’s request, Keithley F. T. Lake, President of Anguilla’s Chamber of Commerce and Industry, developed themes raised in an interview with Anguilla Finance Limited’s Shernika Connor and reported in The Anguillian on 24 January and 14 February. In a convincing presentation, Mr Lake focused on skills and skills availability in Anguilla and highlighted areas for development. In particular, he urged recognition of the need for collaborative efforts on the part of Government and industry in developing appropriate levels of language proficiency to match the requirements of the industry’s likely future target markets (notably, the so-called “BRIC” countries) and in producing the appropriate number of workers with the acknowledged core competencies, for example, accounting and computer skills, necessary “to move (Anguilla) into a competitive position within the financial services arena.” Echoing comments made earlier by Governor Scott, Mr Lake observed: “(Government) policies need to take into consideration what competencies are needed, the need to attract outside talent in areas where there are deficiencies, so that potential employers can plan their workforce needs with confidence, knowing that their needs will be addressed on a long term basis.” Above all, Mr Lake exhorted that the industry’s mantra must be “Improve, Improve, Improve!”
Angel Bacho Vega, a Regulatory Manager with Artex Risk Solutions Inc., of Arizona, a licensee in Anguilla as an insurance and company manager, delivered an inspiring presentation on Anguilla being a true competitor (rather than a mere participant) in the financial services industry, and particularly being a serious competitor as a jurisdiction of choice for the captive insurance industry. Mr Vega, supported by Steve Garlick, Chief Executive Officer of Anguilla Finance Limited, paid tribute to the nineteen candidates from the Commission and the industry now pursuing the Associate in Captive Insurance (ACI) designation as providing proof positive that Anguilla has the human capital available to make it a competitor.
Carlyle Rogers, Managing Director of the Stafford Group of Companies, delivered a wide-ranging presentation entitled “Substance over Form: The only way to survive”. Pointing out that the age of transparency has arrived, Mr Rogers argued forcefully for aggressive development of activities with real economic substance, rather than having a company’s sole links to Anguilla being the location of incorporation, registered office and registered agent. His objective would be to have, to the extent possible, a company’s physical presence and “mind and management” in the territory’s low tax jurisdiction. While providing a number of examples of how the new “model” could work, Mr Rogers emphasized its applicability to industries with a significant proportion of knowledge workers employed, asking: “What if Facebook (also celebrating its Tenth Anniversary in February 2014) had been developed not in the US but in an offshore jurisdiction (such as Anguilla)?” As other speakers had done, Mr Rogers highlighted the demographic changes that such activities would likely mean for Anguilla.
There was frequent opportunity for interaction between industry members and speakers on issues of importance to them, notably the Government of Anguilla-sponsored presentation on FATCA by two representatives of the ECCB, and the report on progress on C-FATF compliance and the summing up of the day’s proceedings by the Commission’s Chairman, Mrs Helen Hatton.
The occasion was also marked by presentations by Governor Scott of framed photographs to Mr Ralph Hodge MBE and Mr Carl Harrigan, in recognition of their ten years of service as Members of the Commission’s Board, and by presentation of a gift to Mrs Maria Smith by the Commission’s Vice-Chairman, Mr Hodge, in recognition of her ten years of service as the Commission’s Office Manager.
