Ms. Connie Smith, Partner/Ernst & Young Trust Corporation (BVI) Ltd.

Financial Services figures slightly down - even before Sept. 11th

Industry practitioners have expressed a renewed commitment to doing all they can to safeguard the integrity of the financial services sector in the British Virgin Islands, it has been announced here.

This, from Ms. Connie Smith, Partner/Ernst & Young Trust Corporation (BVI) Ltd., as she addressed the October monthly general luncheon meeting of the BVI Chamber of Commerce and Hotel Association (BVICCHA) last week. She was asked to present a detailed update from the perspective of financial services providers in the BVI about the impact of the events of September 11th on the local industry .

“I consider that it is perhaps a bit too early to make an assessment of the effects of the horrific events on the financial services in the BVI,” Ms. Smith, who is also a BVICCHA Board Member stated.

She elaborated by pointing out that it is safe to say that territory-wide, the figures on new business coming into the territory for the year to September 11th were already on the decline.

“We in the industry can attribute this decline to a number of things, perhaps including, but not limited to, a maturing of the market, as well as a global recession that was evident in some markets and tethering in others, pre-September 11th,” the well-known Ernst & Young executive explained.
She pointed out that all offshore centres, whether they are in the Caribbean or in other parts of the world, would be subjected to increased international scrutiny, especially as a result of the initiative by the Organization for Economic Cooperation and Development (OECD).

In a circular issued by Director of Financial Services, Mr. Robert Mathavious last week, the government of the British Virgin Islands issued a call for extreme vigilance and reminded all institutions licensed to operate within the financial services industry of the BVI, of their statutory obligation to conduct thorough checks of their records, for names of alleged subjects under investigation in connection with the recent terrorist attacks.

Ms. Smith ended her interesting presentation by saying that: “We all recognize the important role we have to play in ensuring that we, the industry practitioners, do our utmost to safeguard the integrity of our financial system and protect what we have collectively worked hard to achieve.”