Thursday, December 11, 2014
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Ryan Pinder’s new employer believes the Bahamas has “a tremendous opportunity” in financial services if it is innovative, with its current recruitment drive intended to position the institution “for the next 20 years”.
David Munoz, Deltec International’s group chief executive, told Tribune Business that the Bahamas would need “a fair amount” of creativity to maintain both its current position, and increase, its international financial services market share.
Describing Mr Pinder’s hiring as chief legal officer and head of wealth planning, as “a strategic move” tied to these develops, Mr Munoz also moved to correct several perceptions of Deltec’s plans that are currently ‘doing the rounds’ in the financial services industry.
Multiple sector sources had told Tribune Business that Deltec was “reinventing” and “rebuilding” itself, having recruited Mr Pinder and numerous other industry professionals in recent months.
They suggested that the Lyford Cay-based institution, which has 50 staff, was in “aggressive expansion” mode, and seeking out acquisition opportunities.
Several contacts said Deltec was exploring the potential acquisition of Royal Bank of Canada’s (RBC) Bahamas-based private wealth management business, following the Canadian institution’s decision to exit this business Caribbean-wide.
Mr Pinder, in his last comment to Tribune Business before his resignation as minister for financial services was confirmed, expressed his determination to keep that RBC portfolio in the Bahamas. Hence, the narrative went, his interest in the Deltec post due to a convergence of interest.
However, Mr Munoz yesterday denied that Deltec was eyeing an “aggressive” expansion strategy, as many in the industry believe following its recent hirings.
He confirmed that Deltec had recruited Brian Jones from UBS (Bahamas) to head its fund administration business, and earlier this year hired a number of staff from EFG Bank to work in its trust unit.
“It’s not so aggressive,” Mr Munoz told Tribune Business of Deltec International’s plans. “It may be aggressive to some people, but it’s actually a fairly conservative approach to the business. I wouldn’t characterise our growth as aggressive.
“At Deltec, we believe that there’s a tremendous opportunity in Nassau, in the Bahamas, for financial services, but it’s going to require a fair amount of innovation over the next 10 years and a continued commitment to client service.”
To fulfil Deltec’s vision and strategy, Mr Munoz explained that it was “really trying to find some of the best in the Bahamas to help us position for the next couple of decades for our clients.”
As for suggestions that Deltec was interested in acquiring RBC’s portfolio, Mr Munoz said acquisitions were “not a very aggressive focus for us”, with the bank traditionally favouring other means to grow.
“There are a lot of changes in the market. There are good people and businesses changing hands,” he agreed.
“We’re not immune to it, but acquisitions are not a very aggressive focus for us. I don’t think we’ve ever made an acquisition at the company. If we did, it was more than 20-30 years ago. Our business has really grown through referral; organic growth.”
Mr Munoz also knocked down talk within the financial services industry that Deltec was switching to an investment banking model, saying this was “definitely not” the case.
Emphasising that all the new recruits were to buttress Deltec’s focus on its traditional high net worth, private wealth management niche, he added: “It’s really remaining true to what Deltec has always been; very high quality service to a select group of clients - nothing more than that.
“We’re just hiring a few people that can make a difference to those clients. Our goal is not aggressive growth at all. It’s a really stable business with stable shareholders.”
Deltec was founded in the Bahamas in 1959, and Mr Munoz said it would remain focused on its long-standing business model despite all the changes occurring throughout the Bahamian financial services industry.
“We’re committed to staying in the Bahamas,” he told Tribune Business. “It’s our headquarters, it’s our only location, so we’re going to continue to innovate and stay current with regard to our clients.”
Comments
TalRussell says...
Am I reading what I be reading? Here we have Comrade David Munoz, Deltec International’s group chief executive not only going public over why his bank gone all out hire Comrade Minister Ryan but got balls do it - while the Minister Financial Services remains seated around people's cabinet table.
Comrades how could the two highly intelligent Rt. Honourable Prime Minister Christie and da Honourable Minister Ryan not think the nation at large was not going be left all soured-face-up on what has been described in media as; " a mind-blowing too sweet an offer pass up on for the Financial personal Services Minister's financial well being. Minister Ryan has made his position very clear that he would rather be somewhere else than seated at people's cabinet table.
However, to remain seated at cabinet table also requires a very high state of the appearance of avoiding conflict at all costs To remain seated as the Minister responsible Financial Services represents a worse case condition.
All this happening at a time thousands of the very people who voted for this government, will celebrate their Christmas meals only through the charitable good works others.
http://tribune242.com/users/photos/2014…
Posted 11 December 2014, 1:34 p.m. Suggest removal
banker says...
You are talking more and more sense all of the time.
Posted 11 December 2014, 2:04 p.m. Suggest removal
banker says...
Man, if Deltec were a publicly traded company, I would be the first in line to short sell their stocks -- meaning that I would be betting on their failure. As a wealth and trust practitioner, I see the G8 pushing for the death of the offshore tax haven. Even more disturbing, is the government's inability to see this.
The trend started long ago, with the Bank of Montreal selling its Bahamas entity. Then the CIBC was distancing itself with the First Caribbean entity. UBS curtailed operations. The venerable French institution BNP Paribas sold its wealth management book of business to Scotia Trust. They had to shed a whole pile of clients, who were told to go elsewhere because of their holdings which contravened G8 tax laws where they had primary residence.
How many banks and offshore institutions has the Bahamas lost in the past ten years? How many wealth and trust management practices have bitten the dust? Well over a hundred and I would bet that there are over 400 corporate entities, wealth & trust IBCs and such that have faded to naught.
The John Doe subpoena to the Swiss banks, coupled with FATCA and the push for WTO and Eurozone TIEAs or Tax Information Exchange Agreements makes the Bahamian product a non-contender for the provision of financial services to a large majority of High Net Worth Individuals. Bahamians are left chasing Latin America money with questionable origins and tax status of the beneficial owners of those capital pools.
If we had invested in a modern banking system, the dollarization of the economy to permit open transactions in investing in capital pools world wide, and developed innovative wealth management products suited to a post-911 world, we could have maintained our position and grown the second pillar of the economy to overtake the first.
Instead we have companies like the one that Pinder is going to, essentially nominally domiciled, treated as a second tier, upper class of corporate entities with preferential privileges operating in a sphere (investment and otherwise) that is inaccessible to regular Bahamians.
What are these people and these companies going to do when the residents of Bain Town and Grants Town come breaking down the gates at Lyford Cay? With the economic slide, the deterioration of the socio-economic fabric, and the anarchy of the rise of crime, I can see that day coming.
Posted 11 December 2014, 2:21 p.m. Suggest removal
SP says...
......................The only thing "innovative" here is government stupidity & bullshyt .......................
Posted 11 December 2014, 3:15 p.m. Suggest removal
ted4bz says...
It is wonderful that Mr Pinder found the opportunity to improve himself and his family. But he was called to a bigger mission to help improve the country's position in difficult times. Mr Pinder is gone and our position is the same, or worst.
Maybe we Bahamians can appreciate a government who leads a population of poor and naive group of people, but what about the global community? How much respect do they have for us? We don't have to look far to see that, just take a look at the respond coming in from the global community on the immigration matter.
If only our government think big that they will realize to serve one country in the capacity of a state office is an honor and privilege. If only they can see that their appointment is not one to improve their status alone but one that is much much bigger and greater that self, but one in which is to take our place in the world by earning the respect of the world.
That can only happen if we work for the common good of the entire country.
That can only begin to happen by realizing that serving the country is a great opportunity to improve the status of all the people. The opportunity to raise the country to new heights. The opportunity to create a nation of quality, pride and privilege for all and this includes Mr Ryan and his family at the same time.
Mr Ryan we can become:
1. A government that represents a nation of wealthy and intelligent race of people. Thats a quality government.
Or settle for:
2. A government that is loved by its nation of poor and ignorant race of people. That's a poor government.
3. A government that is smiled on by a wealthy and privileged minority group of individuals. That's government that no one takes seriously.
Each step down is a downgrade, so tell me Mr Pinder which should we settle for?
Posted 11 December 2014, 3:16 p.m. Suggest removal
TalRussell says...
http://tribune242.com/users/photos/2014…
Posted 11 December 2014, 4:46 p.m. Suggest removal
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