4 MarketTalk with PwC 10 W ealth Management with Scotiabank 12 C reating an Entrepreneurial Hub
SPECIAL REPORT 2011
Live your life and let us look after the rest.
We enable you to focus on growing your business You’re in good hands with Tricor looking after your non-core business support functions. Tricor is a global provider of integrated Business, Corporate and Investor services. As a business enabler, Tricor provides outsourced expertise in corporate administration, compliance and business support functions that allows you to concentrate on what you do best – Building Business.
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Tricor Caribbean’s services include: • Accounting • Active Business Solutions • Company Formations & Licensing • Company Maintenance • Company Secretarial • Financial Reporting • Payroll and Treasury Services • Registered Agent and Ofﬁce
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BARBADOS • BRITISH VIRGIN ISLANDS • BRUNEI • DUBAI UAE • HONG KONG • INDONESIA • LABUAN • MACAU • MAINLAND CHINA • MALAYSIA • SINGAPORE • THAILAND • UNITED KINGDOM
Substance Over Form “Substance over form” is a well-known principle of the Common Law system which is the bedrock of Barbados’ legal system and explains its commitment to the “rule of law”. As home to the
third oldest Parliament in the Commonwealth, Barbados has always equally concerned itself with the protection of its sovereign rights as well as the economic rights of its residents. ‘Substance’ by its very nature demands enquiry not only to the outcome of an action but the method and consequences of such action whether that action is instigated by an individual, a state or group of states. This national ethos explains in large measure the energy and resources that successive governments in Barbados have directed towards the development of its network of comprehensive tax treaties all of which include provisions on the exchange of tax information. This preference for ‘substance’ and by extension attracting ‘businesses of substance’ has focussed Barbados’ tax diplomacy on a range of politically, socially and economically diverse economies. To date Barbados has twenty eight tax treaties in force including treaties with China, Panama, Venezuela, Cuba, Austria, Luxembourg, the Netherlands, Canada, Botswana and the United States. A further five agreements with Italy, Belgium, Czech Republic, Spain and Vietnam have been initialed. Discussions with Chile and Bahrain are in the final stages. It is perhaps in its interaction with the Organization for Economic Cooperation and Development that Barbados’ concern with matters of ‘substance’ have raised this country’s international profile as a fiscally responsible, co-operative and committed participant in the dialogue and practice of tax information exchange and transparency. Indeed, long before a number of countries were forced to ‘pledge’ their abandonment of secrecy as a key plank of its competitiveness, from the outset Barbados preference for substance over form has meant that for almost forty years Barbados had institutionalised the practice of international tax co-operation with its major trading partners according to the standards contained in its several tax treaty arrangements. As one of a handful of treaty-based, financial services centres characterised by the OECD as “significant” Barbados rightly feels uniquely placed to contribute to the form and the substance of the OECD’s work in this area. Barbados’ credibility in so doing began in 2002 when it, and later
supported by the United States, instigated the revision by the OECD of its own methodology underpinning its work on Harmful Tax Competition. This belief in substance over form forced the OECD to look at its own members who were tax havens ‘in substance’ despite the ‘form’ of their characterisation by the OECD in its report. More importantly it lead to the OECD’s public recognition and declaration of what was already known by Barbados and its investors, namely that Barbados is a transparent jurisdiction with fully committed to tax information exchange, evidenced in part by the absence of bearer shares and mechanisms for tax information exchange in its tax treaties. This landmark ‘about face’ by the OECD remains an important reminder that, in matters of international tax cooperation, as in other issues that rightly compete for the attention of the global community of states, ‘substance’ should always trump ‘form’ for it is this principle that makes an action by a state or group of states legitimate, credible and sustainable. That Barbados is again occupied with the now vexed problem of ‘form over substance’ in matters of international tax which has again placed it in the cross hairs of OECD almost ten years later is perhaps unsurprising given the near universal acceptance of the tax information exchange agreement (TIEA) as the preferred means of demonstrating the commitment to the new standards. The OECD-fuelled global preoccupation about the number of such ratified agreements signed rather than the substance or the practice of information exchange amongst signatories to these agreements has found Barbados unable to pass the test of transparency and tax information exchange as detailed in the Phase I assessment of its legal regime as of December 3, 2010. An incredible result if one were to assess Barbados on the ‘substance’ of its commitment to the new international standard on transparency and tax information exchange but an almost predictable result from an Organisation too often concerned with only ‘form’. According to its Phase 1 report on Barbados, the OECD/Global Forum has concluded that although the substance of Barbados network of 28 treaties clearly reflects its adherence to transparency and tax information exchange a number of new tax treaties and protocols including the 2008 standard have not yet been ratified admittedly
through no fault of Barbados. Thus the ‘form’ of these agreements and not the substance that they contain By Francoise L. M. Hendy were deemed International Tax and sufficient to dis- Investment Attorney Invest Barbados-London qualify Barbados from advancement to a Phase 2 Assessment by the OECD. Concerned with the flurry of negative reports occasioned by the Phase 1 report but buoyed by its vindication by the OECD almost ten years earlier Barbados has determined that it will not allow this to distract it from the continued implementation of its national policy on international tax cooperation. Faced with an uncertain date at which time its new and existing treaty partners will be able to apply the agreed international standard on a bilateral basis, in March of this year Barbados issued regulations to its Income Tax Act to permit its Commissioner of Inland revenue to ‘unilaterally’ exchange tax information ‘on request’ and in accordance with the OECD 2008 standards. Not a substitute to the treaty basis for information exchange its provisions will be ‘spent’ once its treaty partners have completed the process of ratification.
firstname.lastname@example.org www.globalinvestmenti.com T: +44 (0)20 7125 0579 F: +44 (0)20 7183 8393 Editor: Robert Rimsky Project Manager: Kuljit Kaler Regional Director: Joseph Bove Design: The Arland Group Suite 404, 324 Regent Street, London, W1B 3HH Registered in England & Wales Registration No. 06900033 The views expressed in Business in Barbados Special Report 2011 are not necessarily those shared with the publisher, Global Investment I Limited. Wishing to reflect the true nature of Barbados, the editor has included articles from a number of sources, and the views expressed are those of the individual contributors. No responsibility or liability is accepted by Global Investment I Limited for any loss to any person, legal or physical, as a result of any statement, fact or figure contained in Business in Barbados Special Report 2011. This publication is not a substitute for advice on a specific transaction.
Business in Barbados
MarketTalk: PwC Advises on Tough Choices With changes to the UK Non Domicile status and legislation introduced by the Finance Act 2008, as well as the introduction of the 50% income tax rate last April wealthy and HNWI’s have considered leaving the UK in pursuit of more tax friendly destinations. What key features makes Barbados an attractive choice for these individu- capacity. As it is a hub for much of the Caribbean, there are daily als? Why should they consider Barbados over other jurisdictions? flights to London, Miami, New York, and Toronto as well as the
We have seen a significant increase in the number of UK peo- other Caribbean islands and a weekly flight to Brazil. At other ple approaching us to enquire about Barbados. It is difficult to say times of the year there are numerous other destinations such as which are the key features when there are a number of features other parts of the UK, USA, Canada and Europe. For someone and each person seems to have a different set of reasons. However, who likes travelling it is a good place to be. the two that are most consistent are quality of life issues, e.g. the Of course there is the fact that the UK ruled Barbados for 350 weather, and the ability to retain more after tax income. Obviously years so the language is English, we have stable democratic Governbeing in the tropics the weather is going to be much warmer year ment, and we drive on the left hand side of the road. Barbados acround and significantly more sunshine than the UK and many cordingly is a member of the British Commonwealth which again other places people may consider. Fortunately as Barbados is in provides some familiarity to UK residents. the very southern part of the Caribbean the chance of a hurricane Another interesting feature of Barbados is that public (private in is very low. So for those people that enjoy outdoor activities and the UK) school is free through the tertiary level and is also mandatory living Barbados is a significant attraction. through the end of high school. This has resulted in a literacy rate in Regarding the after tax Barbados of 99% and a well income issue, although educated population. BarbaHNWIs in the UK were concerned about dos is unique among most we are referring mainly to HNWIs, virtually all the the significant increase in the personal tax of the Caribbean in that reones that have approached gard. In addition there is a us are either fully or partially rate so Barbados listened and made some University of the West Indies retired, so are likely to be on campus in Barbados of a sigchanges to make it more attractive and a nificant size. some form of fixed income. As they are of the age where In terms of a stable serious alternative. they remember the serious banking system many of the inflation during the 1970s banks are subsidiaries of the and the damaging impact it had on people who were on fixed Canadian banks and as we know, Canada was the only G7 country income, they are very conscientious of that risk. Now, with talk that did not require any government bail out of the banking system. of a new round of inflation; for example in oil prices, people are Finally on the financial side the Barbados dollar has been pegged concerned about their net income funds they will have to live on. to the US $ for over 40 years, so there is comfort in the currency When one is looking at up to 50% of one’s income going to taxes, stability. Note also that Barbados currently ranks as the 2nd most and that is before VAT, property taxes and all the other taxes they transparent and least corrupt country in the Americas, after Canada, may face, it is very worrying. What Barbados has done, as I discuss and before the USA. below, is make it possible for them to retain much more of their As of 2007, there were approximately 120000 Non-Dom’s regafter tax income. The specific percentage of tax varies as each situ- istered in the UK worth around £17bn. A survey conducted in ation is different, but I can say that the people we have met so far June 2009 by Knight Frank Market Insight Survey found that 7% did not realise the savings would be so significant. of ‘non-doms’ and 2% of HNWIs relocated away from the UK When looking at the Caribbean the other features Barbados has in the months following the tax announcements. With a further to offer is a population base of a sufficient size, about 280,000 peo- 31% considering relocation. Many have selected jurisdictions such ple, and consequently they can get many of the items they are used as Switzerland and Monaco. to, including numerous excellent restaurants plus the fact there are numerous cultural and sports events throughout the year. The events What is Barbados doing to attract some of these individuals? As a result of a business marketing trip to London in June 2009 are too numerous to mention here but they include many that UK people are familiar with such as football, cricket, polo, golf and sail- we heard that many HNWIs were concerned about the significant boat racing to name a few. Cultural events include Holders Season, increase in the personal tax rate so Barbados listened and made which occurs in the spring and includes a potpourri of international some changes to make it more attractive and a serious alternative. entertainment events, Jazz festivals and Kadooment at the beginning Barbados has always been a popular vacation spot for people from the UK so “brand recognition” was not a serious issue. By that I of August which is Barbados’ carnival event. Another key factor that exists in Barbados is significant airlift mean people were familiar with its location, people and services.
Business in Barbados The main changes that were made or are in the process of being made are: • Income tax – it is too complex to describe in detail but the change here involved extending a benefit companies in Barbados have, called the Foreign Currency tax credit, to individuals. In simplistic terms, if an individual has much of their income in a foreign currency such is the British Pound, then their Barbados tax rate can be reduced significantly. • Foreign Exchange Controls – As noted above the Barbados dollar is pegged to the US dollar - at a rate of 2 BDS$ to 1 USD$. Accordingly Barbados has to manage its foreign currency reserves. While non-nationals of Barbados are already exempt from a number of foreign exchange controls there has been clarification of some rules to ensure that non-nationals can use multiple currencies in their investing activities and minimizing any foreign exchange control paperwork. • Extended stay permits – while economic citizenship is not available in Barbados, the program currently being proposed provides for an initial five year period, with immigrant status being possible thereafter.
over the years. He can reach out to his network and due to his area of expertise Clive is one of the most likely people to come in contact with a UK person who is considering Barbados or will know how one might contact such persons. In addition, Invest Barbados, which is located in the British High Commission in London, has recently contracted Francoise Hendy from Barbados to ramp up its marketing to HNWIs in the UK. Fran ran the International Business Unit of the Barbados government for a number of years and was the leader of the Barbados negotiating team for its Double Taxation Treaties. She is well versed in the area of HNWIs and will be reaching out to those people in the UK. In terms of movement to Barbados the answer is yes, we have seen movement to Barbados. The interest has increased significantly over the last couple of months with a meeting with one or two persons a week on the subject. I expect this to increase over the next year or so and then likely level off unless there are further changes that would peak people’s interest.
What have you done as a firm to market the advantages of Barbados to these individuals? Have you seen any movement to Barbados already?
As PwC is the largest firm in Barbados with about 220 people, plus a very long history in Barbados, combined with our network in the UK we can offer those interested individuals a seamless solution of dealing with both their UK and Barbados tax issues. Furthermore we are always pleased to work with the law firms in Barbados and any other non PwC firm in the UK who may have clients interested in exploring the idea of relocating to Barbados. n Russ Jones, Managing Tax Partner, PwC Barbados
Before answering that question you have to put it in context. Barbados is not a large country, comprising only 166 sq. miles / 430 sq. km. So we are not going to be looking to attract thousands of people. Rather one has to target the most likely individuals. We have made contact with 4/14/11 one of our tax partners in London, Clive PwC TaxHH 02.pdf 8:22:24 AM Mackintosh, who knows Barbados well and has worked with us
How can PwC Barbados help those individuals that would like to relocate to Barbados?
Business in Barbados
Sun, Sea, Sand … and Substance How Tricor can help with a very enticing offering. It is reasonable to conclude that if I took a sample of the readers of this Report that will stimulate economic growth and employment opportunities right now and asked how many of you know about the burgeoning international for its people. business activity occurring in Barbados, it would not be the majority. I expect With the recent changes to the UK laws relating to the taxation of
though that most of you are very knowledgeable about the spectacular natural beauty, almost perfect climate and warm hospitality Barbados is re-known for. Barbados has built its reputation as an international business and financial services centre on a clearly defined strategy, that of seeking to attract companies that carry on substantial business. One of the reasons behind Barbados’ success as a mature, respected centre has been its insistence on the negotiation of double taxation and bilateral investment treaties with international partners. This approach distinguishes Barbados from other traditional financial services jurisdictions. Having currently ratified treaties with 28 countries as diverse as Botswana to the USA and the UK, Barbados continues its commitment to being a high-quality investment platform from which to launch international business. Simply signing a Tax Information Exchange Agreement (TIEA) which has become a boiler plate document since April 2009, does not produce sustainable benefits. Therefore, in choosing a jurisdiction from which one could live, work and play, Barbados presents significant advantages over other competing jurisdictions. Some of these advantages include: • Political and economic stability. Barbados has a British based political system that was established in 1639 and is the third oldest in the British Commonwealth. The Head of State, the Governor General, is a representative of the Queen. • The availability of highly skilled and experienced human resources. • A world class education system in which Government continues to invest approximately 20% of its national budget. • The best healthcare facilities in the region serviced by the largest number of experienced medical professionals. • A very developed business infrastructure, which includes accounting, legal, banking, information technology and telecommunications services. • Easy access to major financial markets with daily flights to London, Toronto and New York. • An impressive network of double taxation and investment protection treaties. • An enviable quality of life. • A safe and wonderful environment within which to raise children. • A wide and varied selection of social events and festivals. Thousands of multinational companies that are involved in activities as diverse as call centers, software development, medical transcription, information processing, international banking and insurance, international sales, investment and manufacturing, have chosen Barbados. Paralleled to this is the growth in professional service providers that support this business activity. This distinguishing environment and infrastructure make Barbados very attractive to businesses and individuals engaging in international activity which has resulted in steady growth of active business in the last few decades. That is what Barbados wants to attract with its efforts: active, reputable business
individuals who are resident but not domiciled there, coupled with the increase in personal taxation in many developed countries, opportunities have abounded for those individuals to relocate to jurisdictions with broader appeal. The Barbados Government has also recognised the opportunities presented by the current situation and made some changes to its domestic environment designed to make Barbados more appealing particularly to entrepreneurs and high net worth individuals. The Barbados Entrepreneurship Foundation (BEF) with the vision to make Barbados “The #1 Entrepreneurial Hub In The World”, was launched in 2010 with full support of Government. The focus of the BEF is to strengthen the environment such that international entrepreneurs can create and manage successful businesses from Barbados. Sun, sea and sand may be very appealing, but for many people, Barbados would like to be able to twin this holiday appeal with more long term opportunities and to live and work in the jurisdiction. Barbados, offers this life-enriching experience. In choosing a jurisdiction from which to conduct your business, good professional services should not be taken for granted. If one intends to do business from the jurisdiction of residence, this is an important consideration on which to evaluate a jurisdiction. Tricor Caribbean is well positioned to assist entrepreneurs and investors alike in establishing and maintaining their businesses of substance in Barbados. Tricor Group (“Tricor”), a member of The Bank of East Asia Group, is a global provider of integrated Business, Corporate and Investor Services. As a business enabler, Tricor provides outsourced expertise in corporate administration, compliance and business support functions that allows you to concentrate on what you do best – Building Business. Tricor has built its reputation and professional expertise through the acquisition of certain practices from major international accounting and professional firms as well as through organic growth and development. Tricor offices are located in Barbados, British Virgin Islands, Brunei, Dubai UAE, Hong Kong, Indonesia, Labuan, Macau, Mainland China, Malaysia, Singapore, Thailand and the United Kingdom. Tricor acquired the corporate and business services practice of Ernst & Young Caribbean in April 2007. We work very closely with our group locations and business partners, including major international accounting firms, financial, tax and legal advisers, to implement and manage solutions for our clients. We offer a range of corporate and business administration services which effectively and efficiently support our clients wishing to access Barbados’ double taxation and bilateral investment treaty network. Our multi-disciplined team of qualified professionals provides expertise in a comprehensive range of business areas, including company formation, licensing and maintenance, company secretarial, registered agent and office services, accounting, active business solutions and payroll services. By Connie Smith, Managing Director, Tricor Caribbean
Business in Barbados
Barbados: A place for your trust Barbados (or “Little England” as it is sometimes endearingly referred to) dos. Subject to the terms of the trust instrument, and the consent has an appeal which extends beyond pristine beachscapes, a rich cultural of any co-trustee, the assets of an offshore trust may be invested environment and the charming lifestyle which it offers. In fact, the juris- in a common trust fund established by the international financial
diction has long been recognised, by those in the know, as a solid environment in which and from which to do business and establish a variety of international business vehicles and legal arrangements, including trust structures. The trust has been described as one of the greatest and most distinctive legal achievements of English jurisprudence. It is therefore fitting and appropriate that this most venerable creation of English law continues not only to endure but to thrive in Barbados, a country with which England has historically had a pivotal political and economic relationship. Barbados’ trust law is based on the principles of English common law, as varied by Barbados statute. It is tri-partite and permits the creation of three types of expressly created trust: the international trust, the offshore trust and the domestic trust. An international trust carries features which are de rigueur for trusts established in leading offshore jurisdictions, such as protector, non-charitable purpose trust, asset protection and anti-forced heirship provisions. The core requirements of an international trust are: a direction in a written trust instrument that the International Trusts Act applies; settlors and beneficiaries (subject to certain exceptions) who are not resident in Barbados at the time of creation of the trust or the addition of assets; at least one Barbados resident trustee; and trust assets which do not include Barbados real estate. An international trust is deemed to be non-domiciled in Barbados for tax purposes and only Barbados sourced income and overseas sourced income which is remitted to Barbados is subject to tax. Income and capital distributions to non-resident beneficiaries are not subject to tax and the international trust is exempt from exchange control restrictions and indirect tax, ad valorem stamp duty or other imposts on transactions undertaken by its trustees. An offshore trust is a trust, the trustee of which is licensed under the International Financial Services Act, the settlors and the beneficiaries (subject to certain exceptions) of which are non Barbados resident and the assets of which are solely comprised of foreign currency or securities. Its main attraction is its exemption from all taxes, duties and exchange control requirements in Barba-
institution and the scope exists for the sale of interests in a common trust fund between offshore trusts. An offshore trust can also offer substantial tax planning advantages when a Barbados international business company (an “IBC”) is incorporated in the structure. An IBC, all of the shares of which are part of a common trust fund, enjoys a zero rate of tax, provided, amongst other things, that its activities are restricted exclusively to the business of buying, selling, holding or managing securities. Ordinarily, IBCs are subject to low corporation tax rates ranging from 1% to 2.5% depending on income levels. However, incorporating an IBC in an offshore trust can result in an effectively tax free structure and offers tremendous scope for creative tax planning. A domestic trust is one in which the trustee is a Barbados resident individual or company licensed under the Financial Institutions Act. Its worldwide income is taxable; it is subject to value added tax; and it may only be exempt for exchange control restrictions if the trust has foreign assets, non-Barbados resident beneficiaries and deals primarily in foreign currency. The central advantage of a domestic trust is that, if properly administered, it may be able to benefit under Barbados’ expanding double taxation treaty network under which Barbados enjoys advantages agreed bilaterally with each of several countries(more than 18 at the time of writing) and is useful in structures which require a trust which is prima facie taxable. Barbados therefore offers a variety of opportunities and advantages for an international clientele and astute estate and tax planners—not least of which is our reputation as clean jurisdiction with “right-sized” regulation. In addition, it is a jurisdiction that enjoys political and economic stability, modern infrastructure, advanced telecommunication systems. With the added value of a well educated workforce; a cadre of highly skilled professionals and reputable service providers; and an exceptional quality of life for those who live and work on the island or visit on business or pleasure, Barbados is certainly a place which merits your trust. n by Melanie Jones and Tara Frater
Business in Barbados
Hilton Barbados: A Part of Barbados’ Heritage After a six-year absence, Hilton Barbados welcomed its first guest on June 6, 2005 and is clearly on the path to making an indelible impression on the island’s hospitality industry. Set on the site of the original Hilton
Barbados which was opened in time for the country’s independence in 1966 this new property features 350 ocean-view guestrooms, including 77 executive floor rooms and 33 suites. All guestrooms ofMatthew Mullan fer a private balcony, high-speed Internet General Manager access, two-line speakerphones with data Hilton Barbados port and cable TV. For guests booked into Executive rooms or Suites, the Executive Lounge provides complimentary continental breakfast, refreshments and hors d’oeuvres along with a check-in and check-out area exclusive to them. The hotel’s features include a sprawling pool complex with a whirlpool, a fitness center and spa treatment rooms overlooking Carlisle Bay and a Kidz Paradise Club. There are a multitude of activities within easy reach such as watersports, golf, horseback riding and sailing among others. Whether it’s shopping for souvenirs or a special anniversary gift, guests can visit the lobby level which features clothing, jewelry and convenience stores, a hair salon and a concierge desk. The property is also fully accessible for persons with disabilities and includes such designed features as wheelchair accessible ramps and roll-in showers. Guests, both resident and non-resident, can enjoy an exquisite meal at any of our three restaurants where savory cuisine and refreshing drinks are always on the menu. For a memorable dining experience, The Grille Restaurant features fine dining with live cooking at one of the most beautiful restaurants on the island. Patrons can enjoy a variety of exciting live entertainment and cocktails nightly at the Careenage Bar. The Lighthouse Terrace Restaurant remains the perfect choice for a more casual indoor or outdoor dining experience overlooking the Caribbean Sea and the historic Lighthouse. This restaurant upholds the tradition of the “old” Hilton, with our Bajan Soup served every Friday at our lunch buffet which is a favourite with diners along with our speciallythemed buffets and Sunday brunch. Located on the poolside and the beachfront, our Water’s Edge Beach Bar is the ideal setting to enjoy more relaxed fare and island cocktails daily. Our meeting room facilities are specially designed to suit the needs of our corporate clientele and business travellers. With over 10,000 sq. ft. of meeting space, the hotel boasts a 4,000 sq. ft. Hilton Meetings complex complete with business centre, boardroom, three meeting rooms which can be divided into six breakout rooms, a 6,200 sq. ft. ballroom with a 570 person capacity making it the largest meeting facility within an hotel environment in Barbados.
Besides the conference rooms the spacious, landscaped grounds offer outdoor options for events. During the celebration of the hotel’s 5th anniversary in September 2010 General Manager, Matthew Mullan, commented, “the team involved has built a beautiful world class hotel facility that will continue to dominate the business and social calendar of Barbados for many years to come”. Of course our success to date could not be realised without the efforts of our greatest asset—our team members. “Dedicated to providing high service, friendly, efficient and willing to go the extra mile to enhance their stay” are just a few of the wonderful qualities guests comment on time and time again. Prior to the opening of the hotel team members were exposed to extensive training in the Hilton brand standards, customer service, and health and safety to name a few. To date our ability to constantly delight guests in addition to our high percentage of repeat guests is testament to the success of our training sessions. Hilton Barbados recognises the importance of giving back to the community and its surrounding environs and continues to play a vital role in this regard. To this end the hotel has forged mutually beneficial relationships with the Bay Primary School, the Garrison Secondary School, the Geriatric Hospital and the Children’s Development Centre, in addition to donating towards various causes and events island wide. High standards, outstanding amenities and exceptional service are synonymous with the Hilton brand and competing against a field of six top hotels within the Caribbean region and eight top hotels in Barbados respectively, Hilton Barbados was awarded the “Caribbean Leading Business Hotel” and “Barbados’ Leading Hotel” in 2007 and 2010 respectively by the prestigious World Travel Awards. On the local front the hotel was awarded the “Pillar of Tourism Industry (Business) Award and the Award of Excellence (Accommodation) Award in 2009 by the Barbados Tourism Awards. Hilton Barbados forms part of the seven Hilton hotels and resorts throughout the Caribbean which includes properties in Curacao, Nassau - Bahamas, San Juan and Ponce - Puerto Rico, Santo Domingo, and Trinidad. The hotel’s location itself bears much historical significance as the Charles Fort (originally named Needham’s Fort) was the former site for British Militia and on George Washington’s 7 week visit to the island on November 2, 1751 he dined at the Fort. The hotel also lies on one of the most important beaches for the nesting of the Hawksbill Turtle, one of the most common turtle species now nesting on Barbados’ beaches and now classified as Critically Endangered globally. Whether it’s enjoying a succulent meal at the The Grille and the Lighthouse Terrace Restaurants, or simply networking in our lobby lounge, our attentive team members will be on hand to provide exceptional service. We look forward to welcoming you to the Hilton Barbados. n
Business in Barbados
Wealth Management Solutions with Scotiabank
Investing with Canada’s leading international bank.
What were the reasons behind Scotiabank setting up its wealth management subject to the current ecodivision in Barbados in 2008? What growth have you seen in terms of demand nomic realities as seen in both locally and internationally for private banking and investment services? the slowdown over the past
As Centre Director for Barbados and Caribbean East, Maya Johnston, MBA, manages the full suite of client services offered under the ScotiaJOHNSTON PriMAYA vate Client Group umbrella for Barbados and eight East Caribbean territories. Maya brings a wealth of management experience Centre Director for Barbad in banking to her role As having joined offeredasunder the Scotia Privat Scotiabank Group Jamaica a SeMaya brings a weal nior Vice President in territories. 2007. There, Scotiabank Group Jamaica as a she established the Customer ExperiExperience unit which institute ence unit which instituted improved more customer-centric service systems, governance structures and President of Non-Branch Sales practices to drive a more customerto clients outside of th centric service cultureservices within the international growth. bank.
Across the globe, Scotiabank has made wealth management one of its strategic priorities for growth. As Canada’s most international bank, we have long recognized that the world’s wealth generation will not be limited to traditional economies such as the USA, UK and Canada. We have therefore positioned Scotiabank to serve the expanding wealth management needs of our clients around the world, including the Caribbean and Central America, Latin America and Asia. Scotia Private Client Group, our wealth management arm to service the banking and investment needs of High Net Worth Individuals (HWNIs), and international business companies (IBCs) is at the forefront of this strategy. Naturally, Barbados was chosen as one of the first of 17 locations (to-date) where Scotiabank has established international Scotia Private Client Group centres, given the high standard of living of Barbadian residents, and the popularity of, and benefits offered by Barbados’ international financial services sector. Barbados is also ideally located as a hub to service the wealth management needs of clients across the Eastern Caribbean.
2-3 years. While much depends on the improvement of the U.S. and U.K. economies, our clients and our business activity indicate that 2011 will see continued, albeit modest, improvement in the local and major economies.
What is Scotiabank’s wealth management product and service offering in Barbados? What interest and take up of your services have you seen in the last 24 months from clients?
some of them may use holding companies or trust structures to mana Barbados age their wealth. We have a diverse client base whichMaya, includes a sig-National Sc Economics and Engineering fr nificant number of Barbadian nationals and residents, as well as many Harvard Business School. non-resident clients from countries such as the UK, Europe, Canada and Asia. In the coming months, we will continue to expand our client base within these targets, and into the Eastern Caribbean market. Scotia Private Client Group is financial solutions While International Investment Advisory services the needs of our that will ena of professionals — from your Private Clients, they also provide investment and brokerage services to ongoing partner— is dedicated institutional investors such as captive insurance companies. financial solutions that provide
Scotia Private Client Group is an umbrella of services designed to help our clients grow, protect, and transfer their wealth from one generation to the next. At the foundation of this service is our Private Banking Package which pairs our clients up with a local Relationship Management team to take care of their day-to-day banking needs, and to provide our clients with customized solutions which are tailored to their unique needs and which are not typically available within traditional retail bank offerings. We have a resident team of International Investment Advisors who can meet the investment needs of our clients through access to major financial markets, and a wide selection of both in-house and independent investment vehicles. The team of Scotia Private Client Group experts accessible to our clients is expanded beyond the shores of Barbados to include discretionary investment management services offered through the Five Continents Group, Trust and Estate Planning Services offered by Scotiabank International Wealth Structuring, and U.S. Private Banking. This enables us to leverage Scotiabank’s local and international banking network to effectively coordinate teams of experts across the disciplines to craft an individual solution through one office. Of course, personalized service, confidentiality and discretion are paramount in what we do. Since opening in April, 2008, we have grown from a group of 5 to our present team of 9 professionals in the Private Banking and International Advisory groups here in Barbados. Having added our first private client at inception, we now provide service and advice to clients throughout Barbados, the Eastern Caribbean, and the world. While the performance of the Centre is undoubtedly a success, our clients are
What percentage of your clients are private, and corporate or commercial? Which markets will you be focusing on over the coming 18 months with the wealth management arm?
Prior to joining Scotiabank, M focused on Customer Experien All of our private banking clients are private individuals, although working with eminent firms in
Relationship Manager gives yo
and financial What are your goals for the wealth management division over personal the next two years goals. and how do you look to achieve them? What major challenges do you face?
We start by hiring the very best people we can to care for our clients Scotia Private Client Group is and that tradition will continue as the team grows. We also continuincluding private banking, inve ously assess our product and service offering to ensureknowledge that we remain of local and global us toAdevelop bank in tune with our clients’ needs, and are competitive ingoals, the allow market. your overall financial portfolio great example of this is the introduction of MasterCard Black to our Group worldwide network, wh Private Banking product portfolio. In Barbados, this across card istheexclusive country and around to the clients of Scotia Private Client Group, with unmatched capabilities and rewards for our clients. * Trademark of T he B ank of Nova Scotia. Scotia Private Client Group is composed of the Scotiabank group companies that provide private client services, including Scotia Wealth management continues to ofbe a growth business for ScoCapital Inc., a Member CIPF. tiabank, and we are committed to making the right investments to ensure our continued success in this space. We recognize that this is a relationship-business and, in the end, our goal to grow is inextricably bound with ensuring that each and every one of our clients feels that their best interests are being served by the Scotia Private Client Group, that the relationship they have built with us is one of unquestioned value, and that they would not hesitate to do more business with us or recommend our services. n
Individual solutions for individual needs. We believe effective asset management begins with in-depth knowledge â€“ of both your specific needs and multiple financial disciplines. As a member of the Scotiabank Group, our team of experts encompasses both local and global specialists across private banking, investments and wealth structuring to ensure we have the right knowledge in place to create the more sophisticated financial solutions you need.
For more information on how we can put our teamâ€™s knowledge to work for you, contact: Ben Crayston Financial Consultant 246.417.2027 email@example.com
Maya Johnston Centre Director 246.417.2004 firstname.lastname@example.org
Scotia Private Client Group | International Trading Centre | Warrens | St. Michael | Barbados
Trademark of The Bank of Nova Scotia, used under license (where applicable). Scotia Private Client Group is composed of the Scotiabank group of companies that provide private client services, including Scotia Capital Inc., a Member-Canadian Investor Protection Fund and a member of the Investment Industry Regulatory Organization of Canada. (03/11)
Business in Barbados
Barbados’ Entrepreneurship Vision The Barbados Entrepreneurship Foundation (BEF), a Private Sector not-forprofit entity, established in 2010, has embarked on an ambitious vision to make Barbados the #1 entrepreneurial hub in the world by 2020 with the full backing of all the Social Partners and a personal endorsement of the Prime Minister. Barbados is already an aspirational lifestyle and hospitality
destination. Everyone wants to be in Barbados. Its emergence as a world class international entrepreneurship location is now in the making. The two combined will make Barbados the best place in the world to live, invest and play. The World Economic Forum’s The Global Competitiveness Report 2010-2011 ranks Barbados 5th in the Americas after USA, Canada, Chile and Puerto Rico and 43rd in the world. Barbados is the highest ranked Caribbean Country by the World Economic Forum in the Global Information Technology Report 2009-2010.Barbados has one of the highest world rankings by the UNDP in its 2010 Human Development Index; it is ranked 3rd in the Americas behind Canada and the USA and ahead of Chile and Argentina. It has a lower corruption rating in Transparency International’s 2010 Corruption Perceptions Index than the USA, UK and France. Geographically, Barbados, on the doorstep of the Americas, is strategically located as a natural hub. World class air and seaports make it is easy to travel and connect with the main international trading centres of the world. With a 99.7% literacy rate there is a highly educated and trained work force that can meet the demands of global enterprises. The Cave Hill School of Business, a division of the University of the West Indies, located in Barbados, produces local business graduates and is partnering with the BEF to provide sophisticated tools and educational support for Entrepreneurship. Throughout its fascinating history, Barbados has been renowned for its political maturity, social stability, successful economy, financial independence, the integrity of its legal system and a welleducated population. Barbados has enjoyed political stability and strong leadership for decades. This political stability has fostered investment grow and provides an attractive, stable environment for doing international business. Socio-Culturally, Barbadians enjoy a high standard of living. International entrepreneurs who have chosen to relocate here have found that the amenities they are accustomed to enjoying in the developed world are paralleled in Barbados, with the added benefits of a rich local culture and beautiful year round weather and top class business and residential accommodation. Technologically, Barbados has the connectivity that facilitates global business. On 11.11.11 Barbados will become the first island in the world to have 100% free Wi-Fi enabled internet access from “Rum shop to Bus stop”. Step off the plane or boat and you are connected from anywhere-free. The Barbados Entrepreneurship Foundation’s board of highly respected and experienced persons, is well represented by all the Social Partners and is dedicated to identifying and addressing the main areas which will make Barbados a real force in global busi-
ness. Our vision encompasses attracting Highly Skilled Individuals, International Entrepreneurs and High Net Wealth Individuals to make Barbados their business and personal homes. BEF’s agenda is constructed on five pillars that are the key success factors in the achievement of its 2020 Vision. The five pillars and their broad missions are as follows: 1. B usiness Facilitation: Making it easier to setup and conduct business in Barbados for both local and international businesses. 2. Mentorship & Networking: Ensuring that there is interaction between entrepreneurs in an effort to foster greater cooperation as well as create mentorship relationships to share knowledge and experiences. 3. Finance: Providing the infrastructure for entrepreneurs to access capital to finance their enterprises and innovations. This will include the creation of an angel investor network. 4. Government Policy: Working with the government towards the creation of a clearly enunciated government policy on entrepreneurship. Also to enhance the efficiency with which the government operates and working to make its departments more competitive and productive. 5. Education & Talent: Provision of training for local entrepreneurs as well as educating the population through programs in the schools aimed at encouraging and enabling the development of the innovators and entrepreneurs of the future. Each pillar is led by a champion supported by a team of passionate and qualified volunteer team members drawn from the community. The activities of the five pillars are coordinated by the programme manager who reports to the CEO, the Chairman and board. In the coming year, each pillar will be executing its clearly outlined missions. Achievements will be measured and detailed reports will be delivered at the Barbados Entrepreneurship Summit on 17/18 November 2011. At the November Summit delegates will determine the BEF’s goals for 2012. The BEF will also continue to use its popular monthly forum as a highly valued education and networking tool, with inspirational presentations by successful entrepreneurs’ both international and local. The forums are also used as a means to continually report on our progress to our ever growing entrepreneurship stakeholder audience. Barbados as a serious and competitive business destination is currently a dream. The BEF’s vision of making Barbados the #1 entrepreneurial hub in the world by 2020 is achievable. Over the next nine years the Barbadian business environment will become more and more attractive for international entrepreneurs to establish their global headquarters, as well as affording them all the benefits of modern living within a modern, unique Caribbean landscape. n By Peter N. Boos, FCA Chairman Emeritus, Ernst & Young Caribbean Chairman, Barbados Entrepreneurship Foundation
Business in Barbados
A Global Strategy with Local Appeal Why leading business execution professionals McKinney Rogers chose to make Barbados home. Over the last few years, especially throughout the financial crisis, many corporations began questioning the stability of the City or New York, they have questioned the taxes and the regulation and the impact of location on their business. While there has been a significant move to jurisdic-
tions like Dublin, Switzerland and Singapore it doesn’t seem like lifestyle choices have had much to do with the decision making process. With the spread of globalisation, and companies responding by making themselves truly global entities, picking a company’s headquarters is more like a military exercise. Having the advantage and access to serve many different clients in each geographical region should be a target for any company, but execution is the key. McKinney Rogers is a highly successful global business which was founded on the idea of helping companies execute their business plans and key strategies with military precision. McKinney Rogers established their global headquarters in Barbados in 2009, mainly due to the fact that the companies CEO Damian McKinney fell in love with the Island while stationed there in the 1980’s with the Royal Marines. Damian said this on his attraction to the Barbados “I’ve always had a strong connection with Barbados having worked here previously and my daughter Charlotte was born here. I moved the company here for a variety of reason including access to our major market, the USA, quality of life and the ability to develop talent here. Barbados also has a vision “to be the #1 entrepreneurial hub in the world by 2020”, which means that we will be perfectly placed to run our global company from here.” In a period of history where many company cutbacks have lasted 3-4 years and salary freezes have lasted just as long, many corporate strategists have been trying to figure out how to win the hearts and minds of the employees back. McKinney Rogers offers Executive Boards the chance to track and manage their strategies and see at what stage of the business cycle strategies are failing. Damian McKinney said this “We are a business execution company. The gap between a company’s strategy and the results it delivers year in, year out is a constant source of frustration for
CEO’s and Boards across the world. Indeed, with the increase in uncertainty in today’s business environment, for example, the sovereign debt crisis in Europe, that gap is growing. We apply military philosophy to business execution to narrow the gap between strategy and results.” Damian McKinney believes strongly in the power of vision and has a strong track record of success helping his clients transform their strategies and vision into action by working with them to achieve clarity of purpose and alignment throughout their organisation. A good example of this is when he worked with Diageo, the global drinks giants to bring their whiskey brand, Johnnie Walker back to the number one position in whiskey brands in the world. He worked closely with the firm to help execute its existing strategy in a more effective manner by adopting a new approach. In 2010 McKinney Rogers received the Queens Award for Enterprise in the International Trade category for increasing direct overseas sales by over 500% in the last 3 years. This prestigious honour was humbly received by Mr. McKinney, “The Queen’s Award for Enterprise is highly prestigious and recognizes companies who excel at international trade, innovation or sustainable development. To be recognized in a highly competitive business environment was a tremendous accomplishment that we obviously could not have achieved without some fantastic clients such as Bacardi, Walmart, Grohe, Wirtz Beverage and Diageo.” Damian McKinney’s advice for those individuals and companies who are considering relocating themselves and their businesses to Barbados is, “The UK is a fantastic place to do business. However, my advice would be Barbados is also a fantastic place to do business as it has a very positive attitude to businesses that want to grow and want to help the country develop.” Damian’s choice to move his firm McKinney Rogers to Barbados is an excellent example of how global companies looking to grow can utilise the advantages that Barbados offers both in terms of doing business and lifestyle choice. It seems you really can have the best of both worlds in Barbados. n
Business in Barbados
The Barbados International Business Association The Barbados International Business Association (BIBA) is a self-financed of International Business and International Transport. BIBA counts private sector organisation created to represent those companies engaged the realisation of the first International Business Week in 2009 as in international business in Barbados. BIBA started as a volunteer or- one of its major successes. This week of celebrations held in October ganisation in the 1980’s to act as a coordinator to the international business sector, which was rapidly expanding due to the various acts promulgated during the 1980s to enhance Barbados’ attractiveness as an international financial services centre. Now, with a full-time secretariat, BIBA provides a network for exchange among those involved in international financial services, trade and commerce, and serves as the voice for the sector in interactions with government and the wider community. Registered in 1997, BIBA has about 170 members. Membership is open to any company registered in Barbados as an International Business Company, International Financial Services Company, Insurance Company, External Company, Foreign Sales Corporation, Society with Restricted Liability, Registered Trust Entities, or other entity in the international business services industry, or any company whose business derives or can derive, benefit from the sector, or entity wishing to contribute to the development of international business. The member firms of the association originate primarily from Canada, but include members from the United States and a growing membership from Latin America. There are some local companies who are members, including utility companies such as Barbados Light & Power and well-known local companies involved in international business activities such as Cave Shepherd & Co. Ltd. The diversity of member organizations within BIBA means that the Associations’ members have different rationales for operating out of Barbados while using features of legislation to affect their strategic objective in their own unique way. The diverse interests of BIBA’s membership indicate the need for an active association to support its members. BIBA not only has to remain aware of changes to Barbados legislation; but with the various tax treaties between Barbados and other jurisdictions, and the interpretations of the tax authorities of those jurisdictions. As such, BIBA has established within its organisation several sub-committees drawing on the expertise of its membership and beyond to provide strong analytical guidance on matters of importance to the sector as they arise. The committees charged with this responsibility are the Banking Committee, Economic Contributions Committee, Immigration Reform Committee, Insurance Committee, Legal Profession Committee, Marketing and Communications Committee, Service Providers & International Business Companies Committee, Tax Committee and the International Business Week Committee. High on BIBA’s agenda is the promotion of the importance of the international business sector to the people and the economy of Barbados. Chief among the strategies for communicating this is BIBA’s coordinating role in the organisation of International Business Week, which is staged annually in collaboration with a number of BIBA’s strategic partners including Invest Barbados and the Ministry
generally includes sustained media interactions on national radio and television that explain the role that the international business sector plays in job creation, foreign exchange earnings, tax revenues, and ultimately better livelihoods for all Barbadians. The week is also seen as a time for members of BIBA and the wider international business community to celebrate their individual achievements and the contributions that they make every day in the communities in which they live, and to the lives of Barbadians of all walks of life. BIBA prides itself on being fully engaged with the Barbados government through the Joint Working Policy Group, Invest Barbados, and other relevant government agencies with which it meets regularly to provide the sector’s views on related matters and policy issues as they develop. It is also a deliberate policy of the Association to align itself closely with other bodies in the local and international business community, including the Barbados Chamber of Commerce and Industry, the Barbados Private Sector Trade Team, the Barbados Coalition of Service Industries, the Barbados Private Sector Agency, various foreign consulates, high commissions and embassies. To facilitate foreign market penetration BIBA also deliberately forges and nurtures relationships with trade and industry associations in the markets of interest to Barbados. As economies around the world gradually emerge from the grip of recession, BIBA Executive Director Mr. Henderson Holmes said the organization looks forward to continued growth for the Barbados economy, the international business sector, and the organization on a whole. Mr. Holmes said international business has the capacity to be the mainstay of the Barbados economy as the island moves forward and he identified bright prospects in private, public and corporate wealth management, trans-shipment, e-commerce and other ICT services, and specialised high-quality health services, which were yet to be fully exploited. Mr. Holmes added that as the industry grows, he expects more international business companies to see the wisdom of a united and cohesive approach to representation within the sector. He added that BIBA had arranged its affairs to allow the maximum flexibility within its organization so that all aspects of the international community could feel at home within the organization and make contributions to its policies and mandate. In closing, Mr. Holmes assured that international business sector in Barbados was committed to good governance and continued to live up to its obligations, and that the island hosted a thriving international business community that was both welcoming and supportive. n The Barbados International Business Association Phone: (246) 4362422 / (246) 4342422 Fax: (246) 4342423 Email: email@example.com Website: www.biba.bb
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