The Seychelles updates Mutual Funds legislation:

The central Bank of the Seychelles said that the Mutual Fund Act had been redrafted to plug the gaps in the previous legislation and allow local financial service providers to tap into the multi-trillion dollar mutual funds industry.

"The original legislation came into force in 1997 when the whole of Seychelles' financial services sector was in its infancy,' said Conrad Benoiton, Director General of the Central Bank's recently created Securities and Financial Markets division.

"Since then the industry has become far more advanced and sophisticated and it is essential that our legislation caters for these developments and allows us to keep pace with other jurisdictions around the world."

The redraft has extended the powers of the regulator by introducing new rights to request periodical audits, request information for inspection and grant powers to enter, search and take copies of any licensed operations, and by guaranteeing compatibility with international standards enforced by FATF, IMF, the International Organization of Securities Commissions and Offshore Group of Insurance Supervisors.

"The global mutual funds industry is worth trillions of dollars and, as Seychelles' financial services sector continues to develop, it is essential that we position ourselves to access this industry," said Benoiton in a statement.

"As with all areas of the financial services industry it is essential that we achieve the appropriate balance in the legislation between providing local firms with the competitive advantage they require, at the same time as ensuring that it is a well regulated industry which conforms to the international standards required to maintain investors' confidence."

The redrawn legislation will also allow expatriate employment levels of up to 50%, replicating existing regulations for the offshore sector. Increasing international concerns over money laundering and terrorism funding has led to additional security measures being introduced into the new legislation.

"A combination of the right legislation and a dynamic private sector has allowed Seychelles to rapidly establish itself as a leading IBC registry and CSL provider, and I see no reason why we cannot achieve the same results with mutual funds," added Benoiton.

The newly drafted legislation is also intended to bolster banking and legal services necessary for mutual fund operations.

BMI Offshore Bank Begins Operations In Seychelles

BMI Offshore Bank (BMIO) has announced the official launch of its offshore banking operations in Seychelles.

BMIO, a joint venture between Bahrain based BMI Bank and locally incorporated Nouvobanq, will be managed by BMI Bank and engage in offshore banking and private banking services as well as provides access to trust and investment services for both corporate and private customers residing abroad.

A special ceremony to commemorate the launch was held, attended by Government officials and senior dignitaries, key business people connected to the offshore industry, Andrew Bainbridge, Chief Executive Officer of BMI Bank, Karl Stumke, Wholesale Banking Director of BMI Bank, as well as other bank officials, guests and media.

Speaking about the launch, Andrew Bainbridge, Chief Executive Officer of BMI Bank said:

“I am delighted to announce the launch of our first offshore bank here in the Seychelles. BMI Bank was set up with a vision to create a universal bank with presence in selected emerging markets and now with the launch of BMIO, we are well on our way to achieving it. BMIO will receive support from the head office in Bahrain, to ensure that the team is equipped with all the necessary tools and resources to run a successful banking operation here in Seychelles. Seychelles is an attractive location, supported by the good legal and regulatory framework of the country as well as its continuing economic progress.”

BMIO will initially offer transactional banking from current and call accounts, deposits and investments on varying terms and internet banking facilities. New products that will be introduced in the coming quarter include Debit and Credit cards, loan financing, trust business and a range of other investment products.

"We are excited about the prospects for business and look forward to building strong and lasting relationships with customers as well as other partners in the industry to promote and enhance the reputation of the jurisdiction. We seek to operate a business that brings together a team of experienced and committed staff, with simple and efficient processes that will make a difference in the market in the way we respond to customer needs’’ said Frank Hoareau Managing Director of BMIO

BMIO received its license to operate from the Central Bank of Seychelles in March 2008.