By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The opposition's shadow finance minister yesterday warned the "way of life for many Bahamians is under threat" to the continual loss of institutions and jobs in the financial services industry.

Chester Cooper, the Progressive Liberal Party's (PLP) deputy leader, told the House of Assembly that "we need to act now" after Julius Baer became the latest major brand to announce it was exiting the jurisdiction with the loss of 30 jobs.

Pointing to the high-salary positions being lost, he added that the financial services sector's impact was felt far beyond the industry itself as spin-off impacts helped Bahamians purchase homes, and insurance, stimulated construction, and helped pay for school fees, cars, taxes and the creation of other businesses and jobs.

As a result, Mr Cooper charged: "The way of life for many Bahamians is under direct threat as the industry shifts and The Bahamas is left without answers in the face of this. We need to now ask ourselves, seriously, what the future holds for the offshore financial services industry in The Bahamas, and we need to act now."

He added that "financial institutions that have pivoted to the Latin American market with special emphasis on investment funds are best poised to survive", but said "through blacklisting and bullying, our confidentiality regime has been badly compromised and with that we have lost a great deal of our competitive edge."

Urging the Government to put in place "a strategic plan" for the industry to "enhance and protect jobs for the middle class", Mr Cooper continued: "Our business model has to transform. We need to focus on real international business having a presence here that is supported by the sector.

"We need real economic substance and presence, which will require a sensible and harmonious immigration policy that is properly monitored. It will require making sure we tout what is attractive for people who set up these companies to move their families here. This will mean robust ease of doing business reforms, policies and processes to make this happen."

Mr Cooper also called for "a more efficient companies registry". He added: "Global regulation is impacting all jurisdictions, and The Bahamas must be able to compete on service delivery.

"Businesses won't flourish if we don't address inefficiencies in service areas that are meant to support this industry. The cost of doing business; the consistency and predictability of systems and services by government agencies; the removal of red tape; better turnaround times at the National Economic Council; and smoother approval processes.

"We need to modernise our approach and become more business-focused and facilitate, rather than impede business opportunities."