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Faced with a global economic slowdown, Jamaica said this week that it would not dress back from plans to implement an offshore centre, but acknowledged that the timetable would ride on developments in the market.
"While I recognise that the current crisis in the financial market will have an impact on the international financial corporations all over the world, it is important for Jamaica to ensure that we are ready when the market settles," said Senator Don Wehby, minister without portfolio in the Ministry of Finance and Public Service, in a statement.
"There is a slowdown in some of the major economies, but this does not discourage us from putting in place the JIFSC," he said.
Jamaica has been quietly developing its plans for an international financial services centre, guided by an advisory committee that was created by Wehby and is led by tax expert Eric Crawford, a partner in PricewaterhouseCoopers.
"We are going quietly and we can use the opportunity to do what we need to do so that when the economy recoup we are well placed ahead," said Crawford.
In July, the committee wrapped up its report on the local market and the regulatory framework that is to guide Jamaica's offshore centre strategy, with the Finance Ministry now in the process of recruiting a chief implementation officer to lead the process.
A shortlist of candidates is to be compiled by the first week of October and a selection made by October 15.
Some of the niche markets identified for the IFSC include sports and entertainment, electronic financial products,stock exchange products and alternative energy.
"It's early days, but we still have to be mindful of the situation. The market will always have cycles. However, there will always be a market for these services in the good and bad times."
Dr Trevor Thomas, an international tax expert, argues that the current turmoil may not be constrained.
All global businesses, including financial institutions, he said, even in this climate continue to seek opportunities for profitability and growth.
Cyclical problems
"The Jamaica IFSC, properly implemented, will offer such opportunities," he said.
"Moreover, its stated market niche of sport and entertainment remains - for all the current financial cyclical problems - one of the strongest and fastest growing market sectors in the world."
But Thomas cautioned that the argument that Jamaica may be perfectly placed to attract the international banks just as they are ready to expand again, may be wish-driven, as no one knows how long the cycle will last.
However, the crisis, he said, should not threaten but rather inform the implementation process.
"Jamaica, in building its IFSC today, should inevitably be more focused on the importance of banking regulation and the need for the proper supervision of its new financial services sector," said Thomas. sabrina.gordon@gleanerjm.com
http://www.jamaica-gleaner.com/glean...business3.html
"While I recognise that the current crisis in the financial market will have an impact on the international financial corporations all over the world, it is important for Jamaica to ensure that we are ready when the market settles," said Senator Don Wehby, minister without portfolio in the Ministry of Finance and Public Service, in a statement.
"There is a slowdown in some of the major economies, but this does not discourage us from putting in place the JIFSC," he said.
Jamaica has been quietly developing its plans for an international financial services centre, guided by an advisory committee that was created by Wehby and is led by tax expert Eric Crawford, a partner in PricewaterhouseCoopers.
"We are going quietly and we can use the opportunity to do what we need to do so that when the economy recoup we are well placed ahead," said Crawford.
In July, the committee wrapped up its report on the local market and the regulatory framework that is to guide Jamaica's offshore centre strategy, with the Finance Ministry now in the process of recruiting a chief implementation officer to lead the process.
A shortlist of candidates is to be compiled by the first week of October and a selection made by October 15.
Some of the niche markets identified for the IFSC include sports and entertainment, electronic financial products,stock exchange products and alternative energy.
"It's early days, but we still have to be mindful of the situation. The market will always have cycles. However, there will always be a market for these services in the good and bad times."
Dr Trevor Thomas, an international tax expert, argues that the current turmoil may not be constrained.
All global businesses, including financial institutions, he said, even in this climate continue to seek opportunities for profitability and growth.
Cyclical problems
"The Jamaica IFSC, properly implemented, will offer such opportunities," he said.
"Moreover, its stated market niche of sport and entertainment remains - for all the current financial cyclical problems - one of the strongest and fastest growing market sectors in the world."
But Thomas cautioned that the argument that Jamaica may be perfectly placed to attract the international banks just as they are ready to expand again, may be wish-driven, as no one knows how long the cycle will last.
However, the crisis, he said, should not threaten but rather inform the implementation process.
"Jamaica, in building its IFSC today, should inevitably be more focused on the importance of banking regulation and the need for the proper supervision of its new financial services sector," said Thomas. sabrina.gordon@gleanerjm.com
http://www.jamaica-gleaner.com/glean...business3.html