More consistency needed on financial services legislation — Penn

Eighth District Representative Marlon Penn has called for improved government consistency in managing the BVI financial services sector.

Penn made the remarks during a debate on the BVI Business Companies Amendment Number 2 Bill 2024, urging a more structured approach to legislation affecting the territory’s most important industry. Penn acknowledged the significant contribution of financial services to the BVI’s economy, stating, “Sixty cents of every dollar made from financial services goes towards the development of our people and the infrastructure of this territory.”

He pointed out that the BVI’s financial services industry has played a crucial role in shaping the territory’s economy since the enactment of the original Business Companies Act in 1984. However, Penn expressed concern about the sector’s recent downward trends. He emphasised the need for ongoing discussions and a unified approach within the House of Assembly to address the industry’s challenges. According to him, “proper discussions on the direction of this industry” would help legislators work together more effectively.

One of the key issues discussed was the amendment’s focus on annual financial returns, a critical component for ensuring transparency and compliance with global standards. Penn pointed out that while annual returns are essential, the process can be burdensome for local businesses, which may lack the resources to meet these requirements.

He stated, “We have a responsibility to support our businesses,” and suggested that more value-added services could help smaller companies comply with financial obligations.

Penn also raised concerns about the shrinking number of local companies registered under the Business Companies Act, noting that less than one per cent of registered businesses are locally owned. He stressed that the government must find ways to support local enterprises to ensure they can thrive alongside international corporations.

Penn further highlighted the broader implications of the financial services sector’s decline, including the impact on job opportunities and commercial real estate. He urged the government to address why the BVI is becoming less attractive to financial services professionals. “We need to ask ourselves why persons do not want to come to the BVI,” Penn said.

The lawmaker called for more frequent and in-depth conversations with financial sector professionals to ensure that future legislation aligns with the territory’s economic needs.