Jamaica eyes space in global financial services market
JAMAICA is looking to carve out a space in the global financial services industry, but local authorities say success will depend on taking a long-term, structured approach, one that builds from the island’s strengths, rather than trying to replicate more established offshore jurisdictions.
“We are creating a framework, an environment to develop that kind of practice here within Jamaica. We have the talent; there’s no doubt the talent is there. We have to create the ecosystem, and then we have to go out and sell it,” Rickie Davis, acting CEO of Jamaica International Financial Services Authority (JIFSA), told a recent Jamaica Observer Business Forum.
Still, he acknowledged that Jamaica would not be able to immediately compete with jurisdictions such as the Cayman Islands or British Virgin Islands (BVI), both of which are already well-established as international financial centres.
“Can we, if we start tomorrow, compete with Cayman and BVI? No, because they’re well-established. But we can begin to create our own market,” he argued.
Davis, who previously worked in the BVI for more than a decade, pointed to that territory’s gradual entry into the mutual funds business as a relevant example. In 2010, the BVI introduced the Securities and Investment Business Act (SIBA), which established a comprehensive framework to regulate mutual funds and their managers and administrators operating in or from the jurisdiction. The Act replaced the older Mutual Funds Act of 1996 and was seen as a key turning point in the BVI’s financial services development.
“Little by little, they were able to build up their mutual fund business because they had practitioners there,” Davis revealed.
While Jamaica may be starting later, Davis believes the country has a distinct advantage that sets it apart from regional competitors — its sovereign status. He explained that unlike jurisdictions such as Cayman, Turks and Caicos, BVI, and Bermuda — which are all British or US territories — Jamaica is a sovereign country with the ability to engage directly with other nations through its network of embassies, giving it a unique diplomatic advantage that those territories do not possess. He also highlighted the potential of special economic zones (SEZs) to support Jamaica’s ambitions, suggesting the country could promote itself as a hub for international transactions and cross-border operations without relying on traditional offshore models.
“Instead of incorporating a company in BVI to do business in Brazil we can, say, ‘Do business here in Jamaica in the special economic zone, and benefit from what is in the special economic zone’. That’s closer to the Singapore model than just offering offshore facilities,” he said.
Jamaica’s clean regulatory slate is one of its strongest selling points as it moves to establish itself in the international financial services space, according to JIFSA Deputy Chairman Peter Goldson.
He noted that unlike some traditional offshore jurisdictions, Jamaica does not carry the reputational “baggage” often associated with legacy financial centres.
While acknowledging that transformation won’t happen overnight, Goldson and Davis believe Jamaica has the opportunity to carve out its own niche, particularly in emerging sectors such as green finance. Davis pointed to the intersection of green finance and green technology as a strategic growth area, suggesting that Jamaica could establish an SEZ specifically geared toward research and development in green tech.
“It’s an opportunity to create a special economic zone for persons who want to invest in R&D where green technology is concerned,” said Davis. “And when something like that happens, there are a lot of other things that follow — investment, employment, and the exchange of technology,” he told the Business Observer.
Additionally, Goldson pointed out that Jamaica’s legislative framework presents new opportunities for the domestic financial industry, particularly through the Segregated Accounts Companies (SAC) Act, which enables more flexible and creative asset structures.
“The SAC framework is used globally in the insurance industry. For example, it allows you to create individual ‘cells’ under one company, where each cell can be used for different purposes,” he explained. “You could have separate accounts for owning different pieces of an aeroplane or a ship, each with its own legal structure. It’s up to the local industry to see that opportunity and be creative in how we use it.”
JIFSA Chairman Steven Gooden also encouraged stakeholders to think boldly about Jamaica’s potential in niche financial segments, pointing to wealth management for high-profile individuals in sports and entertainment.
“Is there an opportunity for Jamaica to be a wealth management company for sports and entertainment practitioners?” Gooden asked, inviting stakeholders to think aspirationally.
He noted that with the right structures in place, such as the SAC framework and the Trust Act which supports succession planning and wealth preservation, Jamaica could create tailored financial solutions for a global clientèle. When those tools are combined, he said, they open the door to tremendous possibilities.