The Establishment Agreement (EA) signed by the Government and the private sector promoter, International Financial Partners (IFP) on June 4th 1999, formalized St. Lucia’s entry into the financial services industry. The approach to the industry that has been taken by the Government is unique as it is based on a private sector / Government partnership.

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 Financial Centre Corporation (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 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 and practitioners 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 provides a synergy not commonly found in international financial service jurisdictions. Importantly, our framework includes the Money Laundering Prevention Act that meets the highest international regulatory standards.

The Registry function under our system is compliance one. It is the function of the Registrar to ensure that procedures specified under the acts are adhered to. These procedures include for example ensuring that the correct forms were 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.

The Registrar of International Business Companies is Mr. Lester Martyr who has been appointed with the approval of the Minister. Mr. Martyr had been the commissioner of crown lands and Registrar of lands for the past eleven (11) years. He recently qualified as a Barrister in the United Kingdom and returned to the government service late last year. In January 2000, Mr. Martyr was seconded to IFWIC to assume the responsibility of Registrar.

In order to promote the jurisdiction effectively FCC has taken the strategic decision to develop Pinnacle St. Lucia as “the world’s only public on line 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 on line through registered agents who will be service providers licensed under the Registered Agent and trustee Licensing Act.

A great deal of time and consideration has been put into the formulation of the strategy for St. Lucia’s entry into the industry. The objective has been to ensure long-term sustainability and success of the industry and the preservation of the jurisdiction’s pristine reputation. The partners on 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.

The offices of IFWIC and FCC are located in the new NIS Building, the Waterfront, Castries. For further information call 758-455-7700.

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