St. Lucia Chapter Launch
24 August 2001

Samuel M. Lohman President, Offshore Institute Speaker's Notes

I. Welcome

Honourable Minister, representatives of government, President, Vice president, Treasurer, and Secretary elect of the St Lucia Chapter of the Offshore Institute, fellow members of the Offshore Institute, and valued guests, I have come to your beautiful island to officially launch the St Lucia chapter of the Offshore Institute.

II. Congratulations

Congratulations to Mr. Nicholas John and Michael Gordon I look forward to working with you over the next few years towards meeting the objectives of the Offshore Institute.

1. For the comprehensive financial service legislation passed. Including:

. The International Business Companies Act (IBC)
. The International Trust Act
. The International Mutual Funds Act
. The International Insurance Act
. The International Banks Act

Regulatory Legislation including;
. The Registered Agent and Trustee Licensing Act
. The Money Laundering (Prevention) Act

2. Innovation in your approach to the financial service industry; e.g. pubic registry and private sector promotion via Financial Centre Corporation's development efforts.

3. For the progress obtained in positioning St Lucia in the international financial service market place. By attending conferences, writing articles, and generally making the effort to meet with industry leaders, market makers, and other respected professionals in the international financial service sector.

4. For embracing the Offshore Institute and its principles of education, ethics, and cooperation between private and public in matters relating to the international financial service sector.

You entered the industry with a proactive strategic sustainable economic plan to gracefully supplement the volatile banana and tourist industry at a difficult time in the in recent history of the international financial service industry; at a time when the OECD, FATF, IRS and others have shifted compliance responsibility to the so-called offshore jurisdictions throughout the world.

Nevertheless, in a little over one year, you have generally positioned St Lucia amongst the respectable offshore jurisdictions throughout the world.


III. Objectives of the Offshore Institute:

The OI was founded with the objective to improve the overall ethics and professionalism in the international financial service sector as well as being a resource for government and private sector alike in matters relating to the international financial service industry.


IV. Current President's Objectives:

1. Monitor important developments in the international financial service industry:

. Privacy
. Sovereignty
. Mutual assistance
. Exchange of information
. Role of extra national organizations (OECD, FATF, etc.)
. Tax treaty developments
. So called "Harmful tax competition"
. Anti-money laundering legislation
. Qualified intermediary
. International wealth planning (corporate and individual)
. Developing financial service centres jurisdictions
. New products and markets

2. Increase membership numbers from the private and public sectors

3. Provide meaningful services and resources to members

. Official website
. E-based magazine The Offshore Financial Intermediary
. Official offshore research site
. Educational activities
. Cooperation with government sector in the best interests of the industry
. Conferences
. Local and Regional Chapter Meetings
. Conference discounts
. Networking opportunities
. Responding to requests to recommendations
. Broadcast e-mail communication to members
. Gateway for members to attend and speak at conferences
. Gateway for members to publish papers
. Ad hoc additional benefits

4. Encourage industry lobbyists (experts, and the like) sympathetic to the needs of the international financial service industry.

5. Achieve greater communication amongst members, Executive Committee, the OI in general with industry, government, international public organizations and other private industry groups.

Since taking office in October of last year, with the help of the Executive Committee we have participated in 10 or more industry conferences to date with at least 6 more for the balance of the year. Members have been offered significant discounts for attendance at such conferences.

In addition, the e-based magazine, The Financial Intermediary, was launched and has been published 4 times; new editions will be circulated every two months and will continue to include, among other things, topical industry related articles and useful information for our members.

The electronic format was chosen as a move to coincide with industry communication trends, enhance communication flow, and maintain a greater degree of independence from publishers (that can be difficult at times). The magazine that has been published 4 times, has a prestigious board of editors made up of industry leaders from the major financial centres.

We continue our objective to offer educational programs to the financial services sector. In this regard, we have "joint ventured" with important conference organizers in the United States, Europe and elsewhere. This enables us to further ensure member attendance discounts and generally further the OI's educational objectives by ensuring that relevant educational topics are addressed at such conferences. In addition, we have negotiated gate fee participation so as to generate additional revenue centres for the OI.

Members may now communicate with fellow members by way of broadcast e-mail. Members need simply forward their relevant message to our Webmaster in order to communicate their message to 500 plus other members and contacts in the international financial service sector.

As president of the OI, I have accepted invitations to write Forwards to publications that are relevant to our industry. It is possible that you may have seen one or two of the same.

Last but not least, I have had the pleasure to work with Anthony Bristol in together conceptualising and implementing the OI's efforts in St Lucia and the Caribbean in general. I have respect and admiration for Anthony who is a "can do" person; if he says he will do it, it is done.

1. Develop a local based industry education program

It is critical that your professional (and support) infrastructure be equipped to seize the opportunity that St Lucia is creating. Relevant local based industry educational programs should be established to ensure a competent, professional, and ethical infrastructure.

In the case of St Lucia, this will continue to include invited expert speakers and subject focus seminars. I would further propose program courses at Sir Arthur Louis community college and / or the University of the West Indies (perhaps creation of a University chair on the subject of the International Financial Service Sector). Such programs should likewise enable your domestic educational institutions to provide additional opportunities to obtain relevant academic training to meet the needs of your developing tertiary sector.

I underscore my interest in assisting and / or heading the effort to design and deliver lectures that would further acquaint your professionals with matters relating to the international financial service industry (including legislation and regulation that has been passed, anti-money laundering compliance, etc.).

2. "Gear up" for the business

. Attract more professionals to the finance service sector: As you develop the business, you will need to ensure that you have a sufficient number of registered agents, lawyers, accountants, and other professional providers that have chosen to work within the international financial service industry. In short, St Lucia must attract more professional providers to embrace the international financial service industry as a core strategy of their respective businesses.
Educational programs should result in creating a larger pool of talent and should result in attracting more professionals to the industry.

. Regulatory bodies: St Lucia must continue to ensure that your regulatory bodies are staffed sufficiently to oversee the rapidly developing offshore services sector.

3. Continue to follow developments in the industry

4. Continue to be an international participant in the CFATF

5. Remember the "trust" nature of the business and that people do business with people

The international financial service industry is the "trust" business. By "trust" I am not referring to the common law concept of trust. Rather, I am referring to the trust required between a fiduciary and its principle. Understand and remember the nature of the exercise that you engage in; your clients (corporate of otherwise) are in someway entrusting you (as trustee, registered agent, lawyer, protector, investment advisor, custodian, etc.) with control in some manner over their wealth and / or affairs. Do not lose the high degree of personal empathy and understanding that is required to be an effective professional in this way.

I submit that your success thus far is very much a function of the excellent efforts of the wonderful professionals from St Lucia. When the volume of business increases (and it will) continue to distinguish yourselves in the tradition of the private banker that understands and cares about its client's needs on a case-by-case basis. Such an approach is likewise in line with law and regulation regarding due diligence and ultimately meeting the client's needs.

6. Be prepared for the "know your provider" trend

7. Pool your professional know-how

8. Make this chapter work

. Monthly meetings "roundtables"
. Contribute articles to the OFI "news from St Lucia Chapter
. Broadcast e-mail
. Advise President on what he can do to assist your efforts
. Assist government in the education of the industry
. Understand the OI ethical code and ensure that your members do as well.

9. Avoid Conflicts of Interest and Appearance of Conflicts of Interest

Continue to structure your offshore financial services regulatory regime in order to prevent conflicts (or appearance) of interest with the private sector in decision-making and operations.

. Globalization
. Transparency
. Rules are changing
. Compete on performance not secrecy
. Movement to repatriate assets
. Compliance is king
. Enforcement shift to private sector
. Move from mutual assistance to private agreements like IRS QI

Once again, I acknowledge the efforts Anthony and others (such as Ian Le Breton in London) for furthering the cause of the OI and welcome others from the private and public sectors to work together in ensuring a sound future for the international financial service sector.
Our plan is to develop further the Caribbean presence of the Offshore Institute. This will entail:

. Anthony Bristol as Caribbean coordinator (working with the current President and VP of St Lucia chapter of the OI)
. Identify additional Caribbean jurisdictions (including BVI and Barbados) for the establishment of local OI chapters
. Implement an additional local chair within the next 8 months
. Culminate in a regional Caribbean OI conference targeted for 2002
. Fully implement the Caribbean regional chair structure under Mr. Bristol's oversight

I am bullish on industry growth potential and the manner in which St Lucia has entered the market (as well as the great growth that it has experienced in the brief period involved). If you measure your success by virtue of the companies registered, awareness in the industry, and reputation, then you receive an A+.

I wish you continued success in developing your financial service sector both for the good of St Lucia as well as the international financial community that you proudly form a part of.

Be active and let your voice be known.