Gary Brough, Managing Director, KPMG Turks and Caicos Islands. KPMG as an approved auditor, provides audit and assurance services to licensed financial service entities such as, banks, insurance companies, trust companies and mutual funds. In addition KPMG’s Regulatory Compliance department assist licensed entities with the provision of training, policy manuals and advisory services to help such entities comply with anti-money laundering legislation.
Why is KPMG successful?
We have highly qualified professional staff. KPMG has an excellent reputation and can provide industry expertise and resources to a wide range of clients. We have extensive local knowledge about TCI’s financial services industry.
Why is TCI a good location?
It is a growing destination with tremendous potential. There is an expectation that the tremendous growth in TCI of high net worth hospitality products will translate in to increased demand for TCI financial services. There is also good collaboration between the private sector and the TCI Government on new legislative initiatives.
The Turks and Caicos Islands offers the international business community a well defined regulatory framework within which to operate a comprehensive range of financial activities including banking, insurance, trusts, mutual funds, investment dealing, companies and partnerships. TCI's modern legislation is complemented by
an experienced professional infrastructure in the public and
private sectors.
The Financial Services Commission (FSC) embodies in a single agency all regulatory aspects of the financial services industry. The FSC is responsible for licensing and supervising all finance-related operating entities to internationally accepted standards. The FSC also provides a centralised and cost-effective service for registering companies, partnerships, trademarks and patents in TCI.
Representing only seven percent of the economy, the offshore financial services sector ranks behind tourism as the main source of income in the Turks and Caicos Islands. However, the sector remains one of the key elements of the islands economy providing employment in the public and private sectors.
The Turks and Caicos Islands provide a full range of international banking and trust services. There are six licensed entities that carry out banking business, five licensed to carry out domestic and international services from within the islands.
Since there is no direct taxation within the Turks and Caicos Islands the banks are not required to pay corporation or income tax. This gives them a distinct advantage in being able to place funds at competitive rates with
lower margins.
The insurance market is an important sector and a growth area in TCI financial services industry. The TCI has developed a niche market for captive insurance companies known as "credit life" or "producer
owned reinsurance companies" (PORCS). The insurance legislation provides for these low cost reinsurance companies to be licensed and used by direct writers that are regulated by the Regulatory Authorities in the United States.
Recently the Financial Services Commission introduced legislation to regulate Mutual Funds.
The legislation provides for mutual funds to be established in the islands and also for mutual funds constituted under the laws of a foreign country to be licensed in the islands as 'recognised mutual funds'.
Investment Dealers legislation was recently introduced which provides for persons to
be licensed as a fund
manager, investment adviser or investment dealer.
The TCI Companies Ordinance provides for the formation
of Exempted Companies (internationally known as IBCs). The formation of these companies has been mainly for use as vehicles for establishing reinsurance companies and for real estate transactions.
In March 2002 the Turks and Caicos Islands committed to the OECD Harmful Tax Competition Initiative with the proviso that there exists a level playing field. To this end the TCI continues with its colleagues in the region to engage in dialogue with the OECD on issues pertaining to achieving a level playing field.
The TCI does not anticipate any significant reduction in business in the islands as a result of new EU taxation legislation. The EU Directive on the taxation of savings income, for example, is applicable to individuals and not corporate entities. It is thus expected that there will be continued growth in investments over the medium to long term from corporate sources.
Policy Highlight
TCI's status as an important corporate domicile dates from the enactment of the highly innovative Companies Ordinance of 1981. The Ordinance provides for the registration in TCI of Ordinary Companies, Exempted Companies (International Business Companies - IBCs), Foreign Companies, Non-Profit Organisations and Limited Life Companies. The TCI company is an extremely flexible vehicle and incorporators are unrestricted in defining capital structure and the rights and liabilities
of members.
If investors have an interest in the TCI, and are considering investing in the islands, through a bank, mutual funds, investment dealing or the use of a corporate vehicle for trust or insurance, it is advisable to contact one of the service providers licensed in the TCI. For this purpose the Commission can provide a list of licensed service providers such as individuals and companies like KPMG who are resident in the Turks and
Caicos Islands.
If individuals wish to establish themselves as a practitioner in the industry in the TCI, the Commission can supply them with a list of attorney and legislation relevant to their practice.
The Turks and Caicos Islands Financial Services Commission can be contacted by
e-mail fsc@tciway.tc,
telephone 649 946 2791
or 649 946 2550
facsimile
649 946 2821/1791
The insurance market is an important sector and a growth area in TCI financial services industry. The TCI has developed a niche market for captive insurance companies known as "credit life" or "producer