Nevis Financial Services Development Marketing Department Newsletter

FINANCIAL SERVICES SECTOR UPDATE

New Regulator Expected

As of 1 July 2004, a new regulator is expected to be appointed at the Regulation and Supervision Department. These and other changes are being undertaken in an effort to continue to maintain the outstanding reputation of the island as Nevis moves into new products and services in the international financial services sector. The new regulator will replace Mr. Neville Cadogan, who returned to his homeland of Jamaica following his resignation in March 2004. During the interim period, Mr. Vieoence C. Prentice, Assistant Regulator served in the post as Acting Regulator in the Nevis Financial Services Regulation & Supervision Department.

Results: A Bright Future for the Nevis Financial Services Sector

Initiatives undertaken by the Nevis Development & Marketing Department and the Regulation & Supervision Department has resulted in new legislation for insurance as well as the drafting of legislation for additional products. Furthermore, investors have been expressing their interests in registering a significant number of companies and undertaking other business opportunities in Nevis. To this end, the Offshore Registry is noticing the positive benefits of those assurances.

Evidence of the significant increase in business is seen for the first five months of 2004, where there has been a 27% increase in new registration of IBC's, LLC's and International Trusts as compared to the same period in 2003. The results are very encouraging and are attributable in part to the many initiatives undertaken by the Financial Services Department and the Registered Agents on the island.

Additionally, the revenue for 2004 is expected to surpass the amount budgeted for the year. It is therefore apparent that the Nevis Financial Services sector continues to demonstrate viability and vibrancy.

RECENT CONFERENCES/ WORKSHOPS /SEMINARS

1. OECD Global Forum

   On 3-4 June 2004, the Premier of Nevis, The Honourable Vance Amory accompanied by Dr. Agatha Jeffers-Gooden represented Nevis at the OECD Global Forum on Taxation held in Berlin, Germany. The meeting was convened to further discuss the process of achieving the objective of a global level playing field based on the high standards of transparency and effective exchange of information in tax matters. The meeting brought together over 100 representatives from 42 governments, both OECD and non-OECD that are committed to that objective.

   The meeting focused on specific proposals made by the sub-group of the Global Forum that was established...