12 minute read
A DRIVING FORCE FOR SUCESS: Interview with Hon. Lorna Smith, OBE
From the first official marketing delegation to Hong Kong in 1990, to being awarded the Order of the British Empire (OBE) by Her Majesty Queen Elizabeth II, Honourable Lorna Smith has played a key role in the success story of the British Virgin Islands (BVI) and is now looking to reach greater heights as the BVI’s first ever Minister for Financial Services, Labour and Trade.
BVI Business Insight speaks to the Minister and Deputy Premier about her vision and ambitions for the BVI and what has driven her successful career in business and finance over the last three decades.
Why do you think it is important to have a dedicated Ministry for financial services now and what do you hope to achieve?
One of the key drivers for the creation of the new ministry is to bring a more coordinated approach to policy development and ensuring international planning and implementation across these vital economic sectors.
We believe that by combining these areas as a government we will be more able to comprehensively seek out new opportunities for investment; identify new products we can develop under the Financial Services umbrella; and ensure that we have the people we need to continue being a dynamic, well-regulated and integrated financial services and business centre.
What are your immediate priorities in the new role?
As you know, the BVI has always been a forward thinking and innovative centre and that’s why we have done so well over the years.
Today, there are undoubtedly both economic headwinds impacting the whole of the global economy as well as the particular challenges we face in the BVI.
Many of these are institutional or governmental in nature, and that is one of the reasons that the government recognised the importance of having a dedicated Ministry of Financial Services, Labour and Trade.
A key part of this is ensuring we have the right credibility with individuals representing these (global) organisations such as the Organisation for Economic Co-operation and Development (OECD) and Financial Action Task Force (FATF). In addition, I have already started talking to a variety of stakeholders in the financial services sector to see where their priorities are, how we can help their businesses grow and what obstacles are in their way.
I want to explore how we, as a new ministry, can make the presentation of our financial services offer even better to attract more investment and create more job opportunities in the BVI. I see the new ministry as the economic driver for the whole economy.
What is your vision and longer-term goals?
I have always believed that financial services can offer so much more to the BVI than just the excellent revenues that we receive. For example, I would like to see an improvement in our banking sector with more financial support to entrepreneurs and small and mid-sized enterprises (SMEs). I recently met with the Banking Association and plan to continue to meet on a quarterly basis to track progress in this regard. We also need to attract more investment to improve our infrastructure and broader services. I’ve already witnessed a lot of interest in private sector partnership with government to improve infrastructure and particularly in education which is so important to our continued success.
Within our financial services sector, we have clear opportunities in digital, green and blue finance and I am hopeful that we can explore the opportunities in these spaces and identify how they can help our economy.
I am particularly excited by the prospect of the Fintech on the Seas idea which we are planning for next year and will greatly increase our reputation as a leading fintech jurisdiction. In the case of Blue Finance, we will also look at the potential to help us restore and protect our natural assets and mitigate the impact of climate change.
And finally, I would like to see more leadership and mentoring from the industry to support our young people. We are already seeing enthusiasm for this across the industry, for example one firm has set up a training programme in financial services for 16-18 year olds which is an excellent example of this kind of initiative. I will be looking to encourage more of the same which is such an important ingredient in our recipe for continued success.
How are you working with the private sector to realise your vision?
I am going to do two things. I’m going to have a more formal working session with the financial services industry to discuss how we can help each other better - particularly looking at new opportunities, new markets and services in addition to the mentorship I talked about above.
Secondly, I am going to hold a similar session for small businesses and entrepreneurs, focused on the districts in the BVI. I want to understand that their needs are and discuss what the government can do better to help them.
How do you think the BVI is currently perceived as a financial centre?
The BVI has credit in the bank so to speak, with a positive global reputation that has been forged over the last four decades.
But we have many challenges that can adversely affect that, notably the recent actions of international government organisations such as the European Union (EU) and OECD. That is one of the reasons the new ministry was formed to make sure we have the right representation in the room when such decisions are taken.
We also need to ensure that we continue to live up to the reputation we have for being nimble and agile both in terms of developing new products and addressing these challenges. We have to be on the front foot in terms of our regulatory standards and in our ability to adapt quickly with the legislation the industry requires. I am hoping that the new ministry will be able to assist in this endeavour.
Where will the opportunities for growth be coming from?
In terms of geographies, we continue to be very strong in Asia, with over 50 per cent of our business originating from the region.
However, we have also seen good growth in our Latin American markets. And these areas will be the focus for our marketing efforts moving forward. We have some plans for Latin America, which I hope we can activate by the end of the year.
In terms of sectors, we will be doing more in the digital space in addition to green and blue finance – which I mentioned earlier.
This will also fit in with the government’s ambitions, as well as hopefully enable us to build more resilience and build a more sustainable future for the BVI.
What about your plans for Labour and Trade?
My overriding ambition is to reduce the bureaucracy and red tape and make it easier for people to work and to do business in the BVI.
We must have a system which enables our entrepreneurs to thrive and prosper and create businesses that can provide jobs and services in the BVI and across the world. This requires easy access to the system and quick decision making.
We are in the process of reviewing the work permit structure and have also announced that there’s a new chair for the Labour arbitration tribunal.
In terms of trade itself, attracting inward investment and creating public private partnerships to improve the quality of life in the BVI and enhance our economic development are critical. I will be looking at how we can begin this process quickly.
We are also taking an integrated approach which is not just about financial services. An early example of this is our trade mission to Guyana which took place in early August with similar missions following for example in Asia.
Getting out on the road has been important to promoting the BVI globally. What other plans do you have?
Delegations are a hugely important part of building relationships in our key markets and this will continue to be a priority for the new ministry.
I was part of the first official BVI Government delegation to China in 1990 and established the first BVI office in Hong Kong. As China still accounts for nearly half (44%) of Financial
Services business and 13% from the rest of Asia which means China and the region is very important and will continue to be a priority. We need to ensure that both our clients and prospects are updated on the BVI advantage.
As such, we are looking at taking a delegation to the region by mid-year. I will be working with BVI Finance and the Industry to make sure there is maximum participation and we put our combined best foot forward to protect and enhance the BVI’s foothold there.
So you have a busy year ahead how will you manage the workload?
Yes very busy, but I am surrounded by a great team, including BVI Finance, the FSC and my Permanent Secretary – so this is a shared responsibility and together we can bring the vision to reality and make a real impact.
Can you touch on some of the highlights of your career?
There are many, but a key moment was being part of our first venture into China and Hong Kong, which opened the door to so many opportunities. The establishment of the Hong Kong Office was also an important step and a highlight, helping expand our footprint into Asia and putting the BVI on the map.
Our industry has brought an excellent fan-base in Asia to the BVI and I am happy to have played a role in that.
I also started the BVI’s London Office, which was important in building relationships with UK Government and wider stakeholders. I hope I will be able to re-establish many of those connections to the benefit of the BVI moving forward.
What has been a driver in taking up office now at this stage in your career?
I’ve always been passionate about making an impact and improving peoples’ lives and most importantly creating more opportunities for young people. I want to see more things done over the next four years to make these things happen. As a businesswoman at heart, I believe that public and private partnerships can do much to address these issues collaboratively and that is what I am going to focus on.
It’s a win-win situation for everybody and so for all those reasons I decided to run and I was successful.
Is there a book, speech or individual that has inspired you?
The person who has inspired me, of course, was the BVI’s first Chief Minister, the late Honourable H. Lavity Stoutt. He was an exceptional leader and architect of some of the Territory’s most significant projects and guided the BVI in its development as an international financial centre. He always used one of the proverbs from the Bible “where there is no vision, the people perish” and that has been a mantra for me.
Under his leadership, I was able to benefit from a good education which was a focus for him. I got my first degree when he was Chief Minister. Like him, I believe the future lies with our younger generations and we must do everything we can to help them realise their dreams and potential, whether it’s young entrepreneurs or artists or whatever field that they are in. I also want to see more young people develop careers in the financial services sector.
In terms of a book, I have to say that a couple of years ago I read Barrack Obama’s book “A Promised Land” which particularly inspired me during my election campaign. It helped me get a real insight into what campaigning is about and that was to listen to the advice from those around you and stay the course, working hard to achieve your goals.
What piece of advice would you give those younger generations?
I would urge them to believe in themselves. They also need to go out and seek opportunities to learn and develop. Mentorship is a brilliant part of that.
If they’re interested in politics, they should get involved with the student council and talk to the industry representatives. And again, see if they can volunteer for civil society where they can make a contribution and meet some of our community leaders. My final piece of advice is network, network, network!
What will be your legacy?
It might be a bit premature for that, but I hope that I can help the industry to continue to grow and develop and become even more resilient so that we are better shielded from the various challenges international institutions try to throw at us. I want to play my part in securing a sustainable future for the BVI through the continued development and evolution of a dynamic and innovative financial services centre. I think that would be the beginning of a good legacy for me.
