NPS - International Financial Services Centre

The potential for Jamaica to be established as an International Financial Services Centre (IFSC) and the anticipated benefits are clear: job creation, real estate development, diversification of Jamaica's economic base, increased government revenue and an expansion of our presence within the international financial market. Having assessed our prospects, Jamaica will seek to enter the market as a mid-value competitor with a strategy for developing into a Centre of Excellence. Initial focus would be on smaller niche markets, exploiting tax treaties and/or special access to larger markets. In this model local professionals will be required to perform most of the service provider jobs.

Cabinet has approved the establishment of a statutory body to manage the implementation and marketing activities of the IFSC; and the Chief Parliamentary Counsel (CPC) has assigned a full-time drafter to ensure promulgation of the relevant legislation by Mid-2009. The Team, headed by Minister Don Wehby has announced a new Implementation Committee, chaired by Mr. Eric Crawford, that will take the project forward until the statutory body is established. The Committee is supported by a secretariat established at Jamaica Trade & Invest.

A Chief Operating Officer has been contracted to manage the project with the support of specialist consultants who will be on board by May 2009 and will look at, inter alia, the refinement of the list of products and services that will be offered in our jurisdiction. Budgetary provision of $102.6 million has been approved by Cabinet for the financial year 2009/2010.

Jamaica has much to offer at this time: a cache of professionals (chartered/qualified accountants, MBAs and lawyers); a strong regulatory framework; and a fast growing financial sector. The high quality of our transportation infrastructure/ airports; our history as a stable democracy; proximity to the world's largest market (USA); and the availability of training facilities for professionals in the financial industry are all positives.

The aim is to offer a range of products and services including regional treasury management and fund management, with special interest in the area of sports and entertainment/copyright financing.

There are opportunities for business and employment within the economy from the development of the International Ship's Registry. The concept of international ship registration is considered to play a key role in developing Jamaica as a shipping centre - a 'one-stop shop'. In tandem with ship registration, the development of Jamaica's aircraft registry is also under consideration. Another niche area, with great potential for job creation, is captive insurance.

This initiative will require maximum cooperation among all the stakeholders - public and private sectors alike - and we must use this period of economic decline to fashion a legislative and regulatory framework that embraces the new standards being developed, recognizes the importance of banking regulation and the need for proper supervision within the sector. In time, the global economy will recover, investors will return and Jamaica will be in a position to take full advantage of the inevitable upswing. With some aggressive marketing, Jamaica will be most appealing when international business once again begins to expand.