Seinfeld - The Bahamas?
By: Timothy J. Colclough

August 13, 2002 Never has the self-proclaimed 'show about nothing' had anything to do, as far as I'm aware, with an article regarding an offshore jurisdiction. Nor will it here, however, since my last contribution, all has been quiet on the western front. Be this as it may, I'll try not to turn this into 'an article about nothing'.

The 'fresh wind' of the new government, the PLP, provided a brief gust before parliament broke for summer. As such, and given the short time the PLP has been in power, it's not surprising we have had a relatively quiet time. Since the new legislation came into being, many scholars and businessmen alike have been providing their views on the overall effects of the new legislation. However, very few have provided insight into how the new legislation has affected their own business. From an individual company point of view it is very much business as usual, although many companies have been forced to alter their product line somewhat to remain competitive. The new legislation and in particular the new KYC (Know Your Client) regulations have had an impact on many businesses. For example, a direct result of the new legislation has been the tremendous drop in Bahamian IBC (an offshore corporation) incorporations. In fact, a recent statistic showed IBC incorporations for 2001 were down 72% from 2000 numbers. A significant drop when you consider these incorporations were the major revenue generator for many financial companies. Be this as it may, IBC's continue to play an integral part in many peoples' estate planning and general offshore existence. The IBC therefore is still viewed as a valuable asset when structuring one's affairs.

From a personal point of view, two major objectives have been made perfectly clear. First, we must put ourselves in a position to keep the clientele we have given the change in the financial landscape, and secondly, increase our competitiveness so as to attract new clientele. As such, we as others are doing, have been aggressively shaping our product line and services to meet current client needs. We therefore have 'adapted' our product line and business strategy to meet current market conditions.

As we are predominantly an Investment Management firm, we have had to contend with the above pressures and also one of the largest economic roller coaster rides the U.S. has seen for some time. The Dow Jones Industrial Average passed 12,000, dropped to 9,000, rose to slightly above 10,000 and plummeted to its current level of around 8,500. The NASDAQ flew to 5,000 and plummeted to under 1,300. All in all, such dramatic swings do little to inspire investor confidence. Over the past six months we have seen a "meeting of the minds" evolve between ourselves and our affiliates. All concerned have come to realize that forming strategic alliances is now an integral part of doing business and surviving such economic downturns. However, most importantly of all, the strategic alliances sought have been done so with companies who provide complimentary products to our own. This has allowed us to further our commitment to our clients to offer a first class, quality and personalized service. We have also sought to set ourselves apart from the competition by keeping our product range relatively small. By doing so there are two main advantages for the client:

An investment decision can be made quickly and without confusion The relative cost of creating and/or maintaining the portfolio is dramatically reduced when compared with other firms. All of the products have been selected for continuity of growth and consistency of returns. In particular, consistency of returns in this is becoming many client's major objective as the markets become even more unreliable. We add further value to our clients by taking the time to educate them regarding their investments. By doing this, the client feels confident in the investments selected and realizes the investment objectives laid out initially are being met. All in all, this allows the client to receive a personalized, efficient and courteous service leaving them safe in the knowledge their money is working for them.

Geographically, The Bahamas has always had and still has a competitive advantage over many other offshore jurisdictions. Direct flights are now available from among other cities, London, New York and Toronto. Other major cities are accessible via Miami International airport, which is just a short 40 minute flight away. The hotels, beaches and golf courses remain as magnificent as ever. So whether you're on business by yourself, or you combine business with a family vacation, you can rest assured it still is better in The Bahamas.

Mr. Timothy J. Colclough, LL.B (Hons)
Quantum Wealth Management Ltd.
10 Dowdeswell St., P.O. Box N-1717
Nassau, Bahamas
Tel/Fax: (242) 325 8785
E-mail: quantum@coralwave.com