08.01.08
Posted in Financial Services, Mutual Funds, Offshore Services, Seychelles legislation at 8:59 pm by Robert Klien
The Central Bank of Seychelles has recently announced that Seychelles’ Mutual Fund Act has been updated. To build on the success of the financial services industry, Mutual Fund Act has been redrafted in order to plug gaps in the previous mutual funds legislation as well as to allow local financial service providers to tap into the multi-trillion dollar offshore mutual funds industry.
The redraft has been undertaken with a view to enable companies working in the financial services sector to offer services to mutual funds investors, which combine the assets of many investors in order to create larger funds for investment in stock exchanges and money markets as well as other investment opportunities.
The original legislation came into force in 1997. This was the beginning of mutual funds development.
The global mutual funds industry was estimated to be worth USD 26.2 trillion by the end of 2007. The industry has surpassed any other offshore business structure. It is growing at an average of 1 trillion USD per year.
It is also worth noting that the newly drafted legislation is aimed at bolstering banking and legal services for mutual fund operations.
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06.15.08
Posted in Business and Economy, Financial Services, Seychelles banking at 6:19 pm by Robert Klien
In order to increase investment flexibility, the Central Bank of Seychelles has announced the introduction of a new service.
The new service allows to sell and buy government-issued bonds. Those who hold government bonds will now be able to sell these bonds to the Central Bank of Seychelles before the bonds reach their maturity. This will allow them to access funds that would have been tied up otherwise. Then, the bonds bought by the Central Bank of Seychelles will be sold to people.
According to Central Bank governor Francis Chang Leng, before this new initiative has been launched people holding bonds faced the difficult prospect of trying to find a buyer if they wished to sell the bonds. This difficulty even increased if they wanted to sell large amounts of bonds. “The introduction of the Central Bank secondary market for bonds offers a fast, efficient and guaranteed market for people wishing to sell bonds and an easy access point for people who wish to use an investment in government bonds as an alternative to saving their money in the bank.â€
Bond holders who intend to use the new service will have to visit the Central Bank of Seychelles, where they will be able to cash either in the full value of their bonds or a percentage of them.
The Central Bank will charge an administrative fee of 0.25% on the face value of the bonds in order to finance the new service.
As a secondary market will be introduced, bond holders will be allowed to exchange their bonds for currency, which will increase their financial liquidity. Nevertheless, the overall level of liquidity will not change because the bonds will stay in circulation.
Central Bank governor Francis Chang Leng hopes that the introduction of the secondary market for bonds will increase people’s familiarity with trading in bonds and other investments, and with “providing an additional interest-earning opportunity for savers looking for the best return on their moneyâ€.
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05.31.08
Posted in Financial Services, Offshore Services, Seychelles banking, Seychelles offshore jurisdiction at 2:09 pm by Robert Klien
According to the press release published on May 20, 2008, Bahrain-based BMI Bank appointed Frank Hoareau as the Managing Director of BMI Offshore Bank Limited, its new Offshore banking business in Seychelles.
Andrew Bainbridge, Chief Executive Officer of BMI, welcomed Frank Hoareau and noted that he brings extensive experience and knowledge of the offshore industry and banking. Bainbridge also said that the Bank is confident it will build a thriving business and capitalize on the many exciting opportunities in the Seychelles market as Seychelles is an attractive location for this venture that is supported by legal and regulatory framework and continuing economic progress.
It should be noted that Frank Hoareau is well-known in Seychelles financial circles and he is familiar with the Ministry of Finance and the Central Bank, where he held a senior position before joining Barclays offshore.
In March 2008, BMI received its offshore banking license and is planning to open for business in the 3rd quarter of 2008.
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04.18.08
Posted in Double Taxation Agreements, Financial Services, Offshore Services, Seychelles IBC, Seychelles banking, Seychelles companies, Seychelles offshore jurisdiction at 3:01 pm by Robert Klien
Publishing Seychelles Strategy for 2017 has been announced previously.
It has also been already told that the mission stated in the above-mentioned document was doubling the Seychelles’ GDP by 2017, which is to be achieved by focusing on developing the offshore financial services industry, fisheries and tourism expansion programmes, and the growth of other economic sectors.
However, it is worth covering another important aspect of Seychelles Strategy 2017. The strategy emphasizes the importance of the active promotion of the menu of offshore services on offer including IBC registration, special licence companies, mutual funds, and insurance captives. On of the strategic objectives regarding this is promoting corporate culture and developing the financial sector by means of setting up a stock exchange that will serve as an important mechanism to enhance Seychellois stakeholding in fisheries and tourism.
Innovation in business practice is to be encouraged and customer service delivery standards are to be raised to strengthen the industry.
As Seychelles is going to develop as a financial jurisdiction, its potential of developing a reputable offshore banking sector will be exploited.Â
According to Seychelles Strategy 2017, the impetus to offshore banking development could be the country’s double taxation avoidance (DTA) agreements signed with 10 countries. Through Seychelles-incorporated offshore companies, international investors will be encouraged to invest in Seychelles’ DTA partners, and the jurisdiction is to benefit from banking services on these transactions. Of course, where appropriate, local legislation should be updated.
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08.18.07
Posted in Financial Services, Seychelles offshore jurisdiction at 12:24 pm by Robert Klien
Last year, the Seychelles Credit Union (SCU) recorded a 13.71% rise on its general reserve. The total funds employed were SR 55 363 756 at the end of 2006, compared to SR 49 613 322 in 2005 and SR 50 055 129 in 2004.
During the same period, capital available for immediate disbursement to clients – or liquidity – has risen by 137% and reached a total of SR 19 084 401, which is a threefold increase over the 2005 figure.
However, as regards income collected by the Seychelles Credit Union during 2006, a drop of over SR 300 000 has been recorded. The income collected in 2006 garnered a total of SR 4 853 556, compared to SR 5 229 049 collected in 2005.
Still, the SCU has recorded an increase of 7.18 % in surplus for 2006 because it lowered it expenses from SR 4 132 359 in 2005 to SR 3 739 167 in 2006, hence accumulating the net benefit.
The above-mentioned figures were provided to the more than 80 members of the Seychelles Credit Union by the Chief Executive Officer, Mr Louis Shamhong, during the recently held 37th annual general meeting.
In the report of the Management Committee, its Chairman Dr Larose indicated that, as compared to 2004, the SCU now stands is a really strong financial institution.
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