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Extremely challenging year ahead for local off-shore industry- Mr. Mathavious
Mr Mathavious, speaking at a cocktail reception at Maria's by the Sea last evening January 29, 2013 in honour of Mrs Hélène Anne Lewis TEP being appointmenteds new Chair of the Society of Trust and Estates Practitioners (STEP), Mr Mathavious warned her that STEP has a hard task ahead of it as the off-shore financial services industry would be heavily challenged by European “forces”.
In fact, he said that this year was going to be an extremely challenging one also for the Virgin Islands and for off-shore centres like the Virgin Islands “because there seem to be forces that are teaming up to look at the industry and with greater intensity on the affairs of off-shore centre like ours” and STEP is likely to be in the firing line.
“I say this because what we are going to find is that the very, very thing that STEP focuses on, the matter of trust, will be brought under even greater intensity as the European Union intensifies its search for money and particularly under the presidency of Prime Minister Cameron of the UK.”
According to Mr Mathavious, STEP has worked closely with the off-shore industry and particularly with the BVI Financial Services Commission over the years in facing up the number of the “giants” that the FSC faced. He also noted that it was with STEP the Financial Services Commission provided the funding for the hallmark paper, which focussed on running a level playing field, “which was able to bring the excesses of the OECBs harmful tax competition to a halt and..and making them stop and rethink that bringing some degree of fairness into the equation.”
The FSC Managing Director warned, however, that at each round initiatives get even more intense. “People regroup and they come with even more vigour, determined to reduce the attractiveness of these types of structures. And we are finding that particularly as the Cameron presidency comes we are going to find that those people from the Civil Law Jurisdiction, for whom Trust is an alien creature, something that they do not understand, are becoming even more rigorous in their hostility towards this Common Law concept and it would not surprise me if once again we find ourselves sacrificed on the anvil of other people’s Europeans agenda.”
Mr Mathavious said the challenges ahead were going to force the Virgin Islands off-shore industry re-examine what it does, how it does it, and to develop even greater strategic alliances, not only public sector/private sector but it will have to cross jurisdictional barriers and make sure that there is a joined up response that meets the legitimate concerns.
“...because I don’t think any of us want to see those structures or our jurisdictions being used for nefarious activities. I don’t think any of us want to see ourselves providing safe havens for what we call the ‘ethically challenged’. And I don’t think any of us want to see the reputations that we have worked so hard to build be destroyed,” Mr Mathavious remarked.
Turning to Mrs Lewis, Mr Mathavious said her work was cut out for her but the FSC was not only cheering her on but it was in the struggle with her, “because so much is at stake that we all have to do our utmost to ensure that the goose that has laid this golden egg for the British Virgin Islands continues to produce more golden eggs.”
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28 Responses to “Extremely challenging year ahead for local off-shore industry- Mr. Mathavious”
People come into our territory everyday and get ahead, while people like you focus on how I can bring down another Virgin Islander today. You really need to get a life, it is Virgin Islanders (If your a Virgin Islander at all) like you why Virgin Islands will never progress. This crabbe in a barrel mentality, everytime anything good happens for a fellow Virgin Islander. What disturbs me the must, is that you continue to display your ignorance for the whole world to see. Please get yourself together.
None of that money was taken from tax payers. What nonsense are talking about regarding budgeted funds. You need to stop your constant miseducation of the people. You're really a sad soul, I will pray for you every night.
France as usual will be expected to lead the charge particularly on the matter of Trusts. They have long seen trust as vehicles that are used for no other purpose other than evading or avoiding taxes. I agree with his sentiments that the OTs (BVI, Cayman, and Bermuda) in particular will need to organize and work together as a group if they wish to weather the incoming storm. Needless to say, these jurisdictions are all competing against each other which could be an impediment to overcoming the challenges Mr. Mathavious spoke about.
We as a Territory should be quite concerned and so we need to brace ourselves for the uncertainty that lies ahead.