Reprinted from Tax Notes Int’l, August 9, 2010, p. 457
At the May 25 Caribbean STEP Conference, one topic was how the international financial services sector should reposition itself for recovery. Ultimately, the strategy depends on the jurisdictions in which the sector or sub-sector is engaged, its clients, its products, and the intermediaries with which it is doing business. Nevertheless, there are some clear strategies that this article identifies.
One question is whether the sector needs to reposition itself. I believe that the nature of globalization requires regular assessment of the position of each jurisdiction, service provider, and other players. The sector must react to numerous changing variables. The recession is a major event to which the international financial services sector must respond. The financial services sector must constantly identify, anticipate, and respond to economic, legal, and regulatory developments.
This article discusses macro trends affecting the economic recovery, the impact of the recovery, and repositioning strategies and steps. Among the strategies are developing treaties, financial and related services products, and new markets. Political independence and stability are also important ingredients for recovery.
A repositioning strategy is important because the world is at a critical stage in terms of economic recovery – a recovery that is fragile and requires strengthening. Business leaders, financial institutions, and financial regulators are trying to cooperate with political leaders to reignite economic growth and stability. The enormous fiscal and monetary stimulus has contributed to improved conditions for some, especially major financial service providers. Just as the economy has started to recover, the world is facing a fiscal crisis with government budget deficits of record proportion in the developed economies. The international community cannot agree on the proper economic or regulatory strategies for recovery… Click here to download the full article.