St. Lucia is now fully poised to enter into the international financial services industry. Six acts have been Gazetted, namely, the Registered Agent and Trustee Licensing Act, the International Trusts Act, the International Insurance Act, the International Banks Act and the International Mutual Funds Act. Regulations for all the acts are expected to be passed by Parliament.

With the legislation in place, applications to become registered agents or registered trustees may be made. These applications are to be made to the Financial Services Unit of the Ministry of Tourism, Civil Aviation and International Financial Services. The legislation makes it mandatory for all entities formed under the various Acts to have a registered agent or a registered trustee. Several applications are expected to be made as there has been great anticipation from local professionals who are keen to establish themselves in this very dynamic industry.

The St. Lucia model is unique as it is based on a private sector/Government arrangement. This arrangement is set out in the Establishment Agreement (EA) signed by the government and the private sector promoter, International Financial Partners on June 4th, 1999. The EA is the strategic plan on which the development of the industry is based. It expressly provides that the promoter will form a company known as FCC and that the government will form the International Financial and World Investment Centre (IFWIC). IFWIC is a 100% government owned company, which will be managed by FCC. Under the EA, IFWIC is to provide the Registry for all companies and trusts registered under the international financial services legislation.

The Government controls the operation of IFWIC and the appointment of the Registrar who is employed by IFWIC upon the approval of the Minister. There will be a Board of Governors of IFWIC that will monitor the activities of the Registry. To ensure effective regulation, the government regulator, the Director of Financial Services will attend all meetings of the Board in an ex officio capacity. For purposes of market acceptance and branding IFWIC will be promoted as “Pinnacle St. Lucia”.

The model adopted makes a clear distinction between the responsibilities of the promoter and that of the Government. The Government will be responsible for the regulation of the industry. This is achieved through the Minister and the office of the Director of Financial Services acting in accordance with powers conferred upon them by the newly passed laws. The most important regulatory act is the Registered Agent and Trustee Licensing Act which makes provision for the regulation of all international financial service entities through effective regulation of the registered agent or trustee. This is a very significant piece of legislation as in other jurisdictions the industry is not regulated by law, merely codes of conduct which do not have the sanction or effect of the rule of law.

In fact, international regulators have commended the government not only on the care with which each act was crafted but also for the fact that collectively the regulatory framework providers a synergy not commonly found in international service jurisdictions. Importantly, our framework includes the Money Laundering Act which meets the highest international regulatory standards.

The Registry function under our system is a compliance one. It is the function of the Registrar to ensure that procedures specified under that acts are adhered to. These procedures include for example ensuring that the correct forms are filed, fees paid, and time limits met. These matters, though important in company administration and in corporate registries, are not the same as regulation. The model contemplates that Pinnacle St. Lucia will have to process several incorporations per day. With great deliberation the government has chosen to provide a unique system where there is someone dedicated to the regulation of the registered agents/licensed trustees and the clients doing business in our island. Therefore there is no contamination whatsoever of the regulatory function with administrative compliance issues.

In order to promote the jurisdiction effectively FCC has taken the strategic decision to develop Pinnacle St. Lucia as “the world’s only public online IBC registry”. Anyone will be able to access the registry through the internet to do name searches and reservations, review the company records, conduct company searches, and request certificates and certified copies. Registration will also be available online through registered agents who will be licensed local service providers.

Payment for registry services may be done online through the use of a credit card. Great effort and expense has been expended to ensure that the system is state of the art secure and that an unparalleled level of service will be provided. The online registry is set to be fully operational by the second half of this year.

The objective is to establish in one year a completely paperless registry. Therefore all communication will be by the internet and every effort is being taken to ensure that profiles and Email addresses of all persons who access and use the system will be obtained. This will provide a very large electronic database that will be used for marketing and strategic planning. Our website will be modified on an ongoing basis to enhance the image of the entire country through promotion of tourism, industry, infrastructure, the workforce etc.

Initially our marketing will be through the traditional industry channels, these being large legal and accounting firms in major cities of the world. We will also seek to establish links for our website on the websites of international financial and investment institutions and to increase our market exposure and penetration. Other successful St. Lucian and hotel websites will also be approached for links.

St. Lucia’s entry into this industry is clearly well thought out. The partners in this project have maintained their obligations to each other and have laid the foundation for the development of a jurisdiction of choice for reputable international business.

In the most successful jurisdictions there is synergy amongst the parties who have these four responsibilities. Every jurisdiction is only as strong as its weakest link, and therefore any compromise of the reputation or image of any of the key players will only be to the detriment of all.

The challenge is now for everyone interested in the development of this industry to focus all energies positively. In this regard, these persons need to educate themselves of the developments and trends in the industry, retrain their employees and prepare strategic plans to take advantage of the many opportunities that this industry will present. Those who plan and gear themselves will succeed, while those who choose merely to watch and comment will find that the opportunities quickly pass them by.

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