Making Waves: Saint Lucian sailing company blends tourism and training

THE STAR BUSINESSWEEK NOVEMBER 23, 2019

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IN THIS EDITION OF

MAKING WAVES: SAINT LUCIAN SAILING COMPANY BLENDS TOURISM AND TRAINING

SBW THE STAR BUSINESSWEEK

James and Pepsi Crockett, the husband and wife team behind Saint Lucia’s award-winning sailing charter company Jus’ Sail, have witnessed some very special moments over the years: the young groom-to-be who popped the question aboard Jus’ Sail’s traditional sloop, Good Expectation; the cancer survivor who celebrated his recovery against the backdrop of a Caribbean sunset; the wedding at sea that Pepsi, a licensed marriage officer, officiated.

JetBlue Eyes Caribbean Growth JetBlue expects capacity to increase between 4.5 per cent and 6.5 per cent in the last quarter of the year and, for 2019 as a whole, is looking at increased capacity between 6 and 7 per cent.

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

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Continued on page 4

Ending Cuba’s Currency War The past decade has been a momentous one for Cuba. It began with a Castro leading the nation, but his name wasn’t Fidel. Then, not long after Fidel’s brother, Raúl, brokered a deal for a ‘thaw’ of relations with the United States under the Obama administration, attention turned to the elevation of Cuba’s new president, Miguel Díaz-Canel.

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The 2019 Jus’ Sail student class.

(Photo courtesy Jus’ Sail)

Havana, Cuba. (Source: Pixabay)

THE STAR BUSINESSWEEK

NOVEMBER 23, 2019

OFFSHORE FINANCIAL CENTRES

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PROUDLY PRODUCED BY STAR PUBLISHING CO (1987)

THE STORY OF SEC v.

MEDIATRIX CAPITAL

BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

beginning March 2016 Mediatrix Capital Inc. and its three principals, Michael Young, Michael Stewart and Bryant Sewall, falsely represented to investors that they held a very profitable algorithmic trading strategy that they deployed in their fund’s investment strategy; one that had returned in excess of 1,600% since its inception, and that there had never been an unprofitable month. The SEC claims in its supporting material that the defendants misled investors by falsifying account statements, and misappropriated in excess of US$ 35mn. Allegedly, the defendants misappropriated this money for their own purchasing of luxury properties in the Caribbean and in the US, among other personal uses.

13 th December 2019 PRESENTED BY

Royal Saint Lucia Turf Club Vieux Fort www.rsltc.com

Thoroughbred Racing in the Helen of the West including The Pitons Cup -The Caribbean’s Richest Prize at US$150,000!

Plus Free Concert immediately after featuring Meshach

Jah Cure

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feat. Ezra d Fun Machine & Ricky T

Tickets available online at

stlucia.org and at The Cell outlets island-wide

The SEC’s filing of this case has had consequences far beyond the US state of Colorado.

I

n September this year lawyers for the United States Securities Exchange Commission (SEC) in Colorado filed an action in the US District Court against several parties with links to numerous nations. The action listed as defendants Mediatrix Capital Inc., Blue Isle Markets Inc., Blue Isle Markets Ltd., Michael S. Young, Michael S. Stewart and Bryant E. Sewall.

The case involves individuals and premises in the US; across various Caribbean nations, like the Bahamas, Puerto Rico and the Cayman Islands; and even the Asian-Pacific nation of New Zealand. The SEC’s filing of this action, its allegations, and the outcome to date have been immensely consequential. To anyone with an interest in the local finance industry, an understanding of this case and its impact is essential.

THE SEC’S ALLEGATIONS The SEC’s complaint is reliant on a number of US statutes, from the Securities Act of 1933 and the Securities Exchange Act of 1934, to the Investment Advisers Act of 1940.

According to the allegations of the SEC,

THE OUTCOME A week following the filing of this action the SEC announced that it had obtained a temporary restraining order and asset freeze against the three individual and three company defendants.

The SEC claims the conduct of the defendants saw US$ 125mn of funds provided by investors placed at risk, and that the defendants engaged in activity that was fraudulent and “Ponzi-like”.

In building and pursuing this case, the SEC has offered a window into the complexities of an international investigation. In remarks following the granting of the temporary restraining order, the scale and scope of this investigation was highlighted by the SEC as it noted, with appreciation, the assistance of the Securities Commission of the Bahamas, the Cayman Islands Monetary Authority, the Central Bank of Armenia, the New Zealand Financial Markets Authority, the Czech National Bank and the UK Financial Conduct Authority.

THE CARIBBEAN ENTITIES THE SEC SAYS WERE INVOLVED As detailed in the beginning of this article, this case involves entities in a number of Caribbean nations. The SEC says Mediatrix Capital Fund Ltd. was registered as an International Business Company within the Bahamas. Mediatrix Capital PR LLC is a Puerto Rico limited liability company that the SEC alleges the defendants formed to receive the proceeds of fraudulent activity. The SEC also alleges that one or more of the defendants used the Cayman Islands entity Blue Continued on page 6

AIRLINES

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NOVEMBER 23, 2019

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JETBLUE EYES CARIBBEAN GROWTH

JetBlue, one of the Caribbean’s longest-serving and largest-capacity airlines, posted bullish third quarter results last month despite challenging headwinds from the Latin American and Caribbean region, and said it is looking to grow its Caribbean presence heading into 2020.

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

L

ONG-TERM GROWTH JetBlue expects capacity to increase between 4.5 per cent and 6.5 per cent in the last quarter of the year and, for 2019 as a whole, is looking at increased capacity between 6 and 7 per cent. Although its recent results this year showed the short-term impact of Hurricane Dorian, this was offset somewhat by a steady domestic market in the US. “Our Latin and Caribbean franchise was impacted by unique events in a number of markets,” said Joanna Geraghty, JetBlue President and Chief Operating Officer. “We saw demand and competitive capacity challenges begin earlier this year but ramped significantly through the summer. We continue to be bullish on the region long-term.

“Customers will continue to travel to the Caribbean region for vacations.

The leisure Caribbean markets continue to perform well for us. We’ve had a long history [of] operating in this region, and it’s a region where there are normal puts and takes. This year we’ve obviously seen a bit more pressure but, based on our experience, this is temporary in nature and it will move.”

Given its experience and history in the region, JetBlue remains sanguine about its challenges and believes that any negative impact from disruptors such as hurricanes can be absorbed by the stability of the market long-term.

The region remains an important part of the company’s plans and forecasts going forward, according to Geraghty: “The Caribbean is a great fit for our model. We are very committed to the region. It’s an area that produces outstanding margins and the returns that we see there more than offset the volatility.”

The Caribbean accounts for a third of JetBlue’s total network. (Photo courtesy JetBlue)

BRANCHING OUT JetBlue services destinations across the US, Latin America and the Caribbean, averaging more than 1,000 daily flights.

The airline has doubled its seat capacity to the Caribbean in the last decade and the region now accounts for a third of its route network.

With 19 Caribbean destinations in its network, including Saint Lucia which is serviced by routes from New York and Boston, the airline is heavily invested in the region and set to increase that investment through its travel booking arm, JetBlue Travel Products, which helps guests book transportation, accommodation, tours and attractions in their destination.

The travel products subsidiary is headquartered in Fort Lauderdale and

includes the JetBlue Vacations brand and associated services such as travel insurance, cruises and car rentals.

Speaking at a recent Caribbean Tourism Organisation forum in Antigua, Head of Commercial for JetBlue Travel Products Mike Pezzicola said: “One thing we see is that as folks are planning to travel, when

JetBlue services destinations across the US, Latin America and the Caribbean, averaging more than 1,000 daily flights

they book their travel vacation with us, and we help them plan it, their stay is longer and they are more likely to return, if not to the destination, then to another destination in the tropics.”

To assist the company in building out its travel products, JetBlue will strengthen its marketing collaborations with the region’s tourism stakeholders including government tourism boards and major private sector players.

JetBlue Executive Vice President & Chief Financial Officer Stephen J. Priest: “JetBlue Travel Products is a plan that we are preparing to optimize next year. The team has also identified some other travel-related products that will be rolling out into the 2020 period as well. So SBW [we are] very excited.”

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COMMUNITY IMPACT

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MAKING WAVES: Saint Lucian sailing company blends tourism and training Continued from page 1

“W

e are very privileged that people choose to do these special things for themselves on our boat,” says James. “We do not take it for granted.”

But Jus’ Sail is about more than making memories. In the busy season, between Christmas and Easter, the boat gives visitors a chance to see the beautiful Saint Lucian coastline by water while, in the low months of summer, it is transformed into a training ground for young islanders who want to learn how to sail, develop their personal skills, become more employable and reconnect with Saint Lucia’s long and proud seafaring culture.

TOURISM AND COMMUNITY Jus’ Sail was created in 2012 to offer tourists a more authentic way to enjoy Saint Lucia’s natural environment. The company’s lovingly-restored Carriacou sloop, Good Expectation, caters to small groups of six and offers sunset cruises, full-day or half-day charters, two-hour ‘taster’ sessions and customised trips for special events.

As Saint Lucia’s tourism sector has boomed, so has Jus’ Sail – enjoying plentiful repeat business and recommendations from satisfied guests.

The company is a regular recipient of TripAdvisor’s Certificate of Excellence and was named Caribbean Charter Company of the Year by the 2016 Luxury Travel Guide.

Aside from its tourism credentials, the business is also drawing praise for its community impact, becoming a finalist in the World Travel and Tourism Council’s Tourism for Tomorrow Awards, as well as the Caribbean Hotel and Tourism Association Awards.

Most recently, the company scooped the Community Benefit Award at the Caribbean Tourism Organisation’s Sustainable Tourism honours.

The accolades may be pouring in now, but Jus’ Sail’s youth work is something that was built into the company ethos at its inception. “From our first year we wanted to do the youth training. We wanted to sow that philosophy in right from the start and we have been doing it ever since,” says James.

Each summer Jus’ Sail takes ten young people, aged between 18 and 25, and trains them in a raft of skills, including sailing technique, swim qualifications, first aid, customer service, teambuilding, leadership and communication.

Jus’ Sail is an accredited sailing school with International Yacht Training Worldwide meaning that, by the end of the course, students leave with an International Crew Certification that they can use to kickstart their careers in the maritime industry.

to success in the world of work. The programme gave me confidence in who I am.”

At the upper edge of the age limit when he applied, Florentville initially worried that he wouldn’t be accepted but says his “determination to make a change in life” motivated him to take the leap. “I now have the chance to put in the training I was given. [I have] much love and thanks for the Crocketts for the courage and patience they put into this successful programme.”

Jus’ Sail’s restored Carriacou Sloop, Good Expectation. (Photo courtesy Jus’ Sail)

James and Pepsi Crockett celebrate their Community Benefit Award. (Photo courtesy Jus’ Sail)

STUDENT SUCCESS Most of Jus’ Sail’s students come to the boat with no prior experience, no qualifications and, in some cases, no hope. “If we have a student who has lost hope or feels like they have no potential, our job is to lift them out of that and make sure that once they leave us, they have a lot of tools in their arsenal,” says Pepsi.

James adds that places for the course are popular but the successful applicants are ones that show the necessary commitment and dedication, saying: “We try and recruit youth who have the strong desire to take their lives forward. Although sailing is the focus, the purpose is to help participants realise they have options, to help those who feel helpless but have a desire to get back on track.

“Most of our students have really struggled to get a foothold in the workplace. They have had no guidance – they don’t know how to meet an employer, behave in an interview or put together a CV. When they walk away from us they have certifications and an experience they can share with a potential employer.”

And sometimes that employer turns out to be the business itself. Jus’ Sail is currently a permanent staff of three: the Crocketts and their first mate O’Brian

Forde, who came through the training programme in 2013 and so impressed James and Pepsi that he became a fulltime member of the team.

Another Jus’ Sail success story, 21year-old Krishna Joseph, is currently making history as part of the first youth team to take part in the Atlantic Rally for Cruisers (ARC), the annual transatlantic sailing event. The 12-member ARC Youth Team will set out from Gran Canaria at the end of this month and spend around two weeks navigating the 2,700 nautical miles to their Caribbean finish line.

Joseph says being a part of ARC has brought her “a whole different other level of joy” and acknowledges that it was made possible through her work with Jus’ Sail, which gave her more than just a thorough grounding in the technicalities of sailing. “It’s a lot of hard work [but] it’s worth it,” she says of the Jus’ Sail programme. “The experience I’ve had with Jus’ Sail has not only made me into a better person but also it has put me on the right path, heading towards my future goals.”

26-year-old Christopher Florentville, another graduate of the Jus’ Sail 2019 class, began working for cruise giant Carnival after completing his course and says: “Jus’ Sail gave me the steps

CONSCIOUS CONSUMERS Jus’ Sail’s two-month training programme costs around EC$40,000 but the entire course, from uniforms to lunches, is free for students. It was important for James and Pepsi to be able to offer an inclusive course for all young Saint Lucians, regardless of income, so the initiative is wholly funded through merchandise sales and donations.

And tourists are only too happy to contribute as ethical tourism moves beyond a buzzword and into practical, grassroots, application. “We have people who book with us specifically because of what we do with the youth programme.

People want to make a contribution and help support our activities,” says James.

“There is a groundswell of change towards becoming a more conscious consumer. When people go on vacation they want to do so in a manner that has a positive impact.”

Unsurprisingly, Jus’ Sail’s success has caught the attention of tourism and maritime stakeholders around the region.

The Crocketts are in high demand from destinations looking to replicate their model, including Turks and Caicos and the Grenadines. While they are very open to collaboration, especially to secure funding – which is always a challenge – Pepsi says it is crucial that any growth is in line with their focus as a boutique business. “We would love more support but the right kind of support. We don’t pack in big numbers; we work with small groups and really build a foundation so the students have a much more solid grounding.”

While it can be a grind to keep their outreach efforts afloat, Pepsi says the pay-off is always worth it. “We have had many proud moments and we have had moments where it has been very hard – from a student who is struggling and cannot see their potential in front of them, to wanting the assistance and funding. It has been a struggle but there have been joyous moments as well.”

“We are not motivated by the bottom line,” adds James. “We want to share our philosophy of ensuring tourism is used to improve the livelihoods of people in local communities, making a better place to live and a better place to visit, in that order.”

CUBA

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NOVEMBER 23, 2019

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ENDING CUBA’S CURRENCY WAR

BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

T

he past decade has been a momentous one for Cuba. It began with a Castro leading the nation, but his name wasn’t Fidel. Then, not long after Fidel’s brother, Raúl, brokered a deal for a ‘thaw’ of relations with the United States under the Obama administration, attention turned to the elevation of Cuba’s new president, Miguel Díaz-Canel.

As the first non-Castro to lead Cuba post-revolution, expectations were that Díaz-Canel would introduce numerous reforms to modernise Cuba, and secure the future of the nation and the ruling Communist Party of Cuba. Though there’s no shortage of reform targets for Havana, bringing an end to Cuba’s ‘currency war’ is among the most critical priorities.

So can the Cuban government get it done?

COIN COLLECTING IN CUBA Dual or multiple currency systems within a nation are rare. Where they do exist, it is usually intended for a temporary time period, a specific purpose, or both. An example is the two-month period in early 2002 when nations adopting the Euro saw the new currency introduced but were permitted to continue using their (soon to be former) national currency before it became obsolete.

Cuba’s experience, by contrast, has been one of frustrating red tape and dire necessity. Right now its system uses the following: Cuban pesos (CUP) – the national currency, used in the state sector; the source of payment for Cubans who work for the many state-run services and operations of the Cuban government; Convertible pesos (CUC) – commonly regarded as the ‘tourist currency’ for its popularity among visitors. Pegged to the USD, worth a whopping 24 times more than the CUP, and used commonly in private business within Cuba.

In the early 1990s the devastating collapse of the USSR extended far beyond Moscow. The end of the communist empire imperilled Cuba’s economy and, in response to a hard currency shortage, Fidel Castro reversed a policy that previously banned the USD, and legalised its use. A decade later the Cuban government would pivot once more and announce that the greenback would no longer be accepted.

The decision to embrace the USD in the early 1990s is seen as the starting point of the nation’s present complicated currency system.

Ironically, it has been compounded by the thawing of relations with the US because private business has grown and wages in this sector of the economy, paid by convertible pesos, far outpace those that an employee of a public employer earns under the national peso.

The dual currency system in Cuba means a private job with minimal training, such as a taxi driving, can command vastly more than the monthly salary of somebody like a medical doctor who has undergone years of training. (Source: Pixabay)

The root of the problem has long existed. It has created a radical imbalance in the economy where private sector workers in jobs with low entry barriers, such as taxi driving, can exponentially outearn the wages of a public employee, like a medical GP, who must complete years of study before qualifying. Economic segregation persists nationwide between public workers who use CUP and those who earn private money using CUC in daily life, often through interaction with tourists. In practice, there is some fluidity between this divide but the scale

Any assessment and contemporary understanding of Cuba’s economic future must factor in not only the mechanisms of government in Havana, but also Washington DC, owing to the tempestuous relationship between the USA and Cuba for the better part of a century

of the problem is immense and creates an abundance of inefficiencies.

THE RIGID REVOLUTIONARIES The Cuban government recognises the problem. In the final weeks of his governance during 2018, Raúl Castro announced plans to scrap the twocurrency system. With Castro on the way out, responsibility for change lay with the next president, Díaz-Canel, but the secretive nature of Cuba’s government did it no favours here. Rumours that it would suddenly end the CUC’s use overnight saw some Cubans ‘do a run on the banks’.

The past year has seen the Cuban government engage in numerous constitutional reforms that critics see as highly indulgent, taking the time and resources to codify socialism as ‘irrevocable’, while rationing food and toiletries. This has left many in Cuba and beyond unimpressed by the direction of its new leadership and its priorities in modernisation.

These events are largely indicative of the Díaz-Canel era so far. Although there has been some positive change, it has been timid. Recent internet reforms encapsulate this dynamic well. In May the Cuban government announced that Cubans could have Wi-Fi routers in their home, opening the door to greater personal access and the emergence of related businesses like internet cafes.

Despite this, there was no change to the nation’s restrictive internet censorship, affirming that while Díaz-Canel is, in some respects, driving positive change, overall it seems it’s business as usual for the Cuban regime.

NEIGHBOURHOOD DISPUTES Any assessment and contemporary

understanding of Cuba’s economic future must factor in not only the mechanisms of government in Havana, but also Washington DC, owing to the tempestuous relationship between the USA and Cuba for the better part of a century.

It must also recognise that the economic downturn of Venezuela – another nation with few fans in Washington, and a close trading partner of Havana, which has delivered a knock-on effect to Cuba’s economy – has played a role in recent woes. It would be a mistake, however, to lay all blame at the door of the American government or Venezuela’s recent troubles.

For a government born in a revolution and embraced by Cubans for its promise to govern for all Cubans and free of foreign intrusion, Díaz-Canel and compatriots cannot have it both ways.

The answer to resolving the currency crisis is the pursuit of a more free and open Cuba. It’s not just a question of politics, but simple pragmatism as a policy of economic protectionism and isolationism is clearly not sustainable any longer.

A NEW CURRENCY CRISIS The Cuban government has a real currency challenge on its hands. Not only is the dual currency system proving painful, but any ambition by Havana to simply try and contain the problem is unlikely to be successful.

Currently cryptocurrency swirls around Cuba’s grey economy. That it does so is not a fault of cryptocurrency technology itself, but instead a basic recognition that, just as surely as cryptocurrency use is set to grow in future, so too does the Cuban government have new ordeals rapidly emerging in its currency war.

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NOVEMBER 23, 2019

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MAKING MOVES / OFFSHORE FINANCIAL CENTRES

TROPHY CENTRE PLUS: The Embodiment of Saint Lucia’s Sports Industry

THE STORY OF SEC V. MEDIATRIX CAPITAL Continued from page 2

BY DEAN NESTOR, STAR BUSINESSWEEK CORRESPONDENT

Crystal awards, like this Art Vase, are most on demand at Trophy Centre Plus

F

or over twenty years Trophy Centre Plus has been one of the leading names in Saint Lucia’s trophy manufacturing market.

From the company’s inception, its founder David McDiarmed has ensured the business has maintained a standard that customers have come to rely on. Over the years the company has gone from strength to strength and has successfully adapted to the ever-shifting demands of a vibrant sports and awards market. Despite the changes, the company has remained a familyowned business.

McDiarmed sat with STAR Businessweek to discuss how his family juggles the increasing demands of the trophy market.

WHAT IS ON OFFER AT YOUR COMPANY? McDiarmed: We offer a wide range of products including

trophies and plaques, customized gift items, acrylic, glass crystal and wooden awards. We also offer certificates, name badges, desk gift items, laser and rotary engraving as well as colour printing of a myriad of products. And we carry promotional items such as pens, pencils, coasters, diaries, buttons, keyrings, tumblers, mugs and glasses. We’re always expanding our product range, as we’ve recently gone into signage. I think our customers appreciate that.

HOW IS THE BUSINESS DIFFERENT COMPARED TO WHEN YOU STARTED? McDiarmed: At first we focused on awards, trophies, plaques and badges but, over the years, we’ve expanded the range of our products and services in order to stay relevant and keep up with demand. We manufacture most of our acrylic awards and create custom pieces

for our clients. Also, our sister company, SportLocka Plus, manufactures physical education uniforms, soccer, netball, basketball, and volleyball uniforms as well, which we also supply as sporting gear and accessories.

occur between May and August, so we find there’s a higher demand for our services during that period as well. November to December is also vital for us, because there are many Christmas awards organised by the various businesses and public sector establishments.

WHO BELONGS TO YOUR TARGET MARKET? McDiarmed: We focus on a number of different sectors.

Students are often recognized for their academic and sports accomplishments, so there’s a market when it comes to schools. Our other clients include government ministries, sports clubs, social clubs, churches, plus hotels and the general public as we now find ourselves catering for birthdays, weddings and other private festivities.

HOW MUCH DOES THE BRAND RECOGNITION ENJOYED BY YOUR BUSINESS, PLAY IN ITS SUCCESS TODAY? McDiarmed: It’s huge and I think it distinguishes us from everyone else.

We have a long record of excellent and reliable service and our loyal customers recognize that.

WHAT FEEDBACK DO YOU GET FROM YOUR CUSTOMERS? McDiarmed: The feedback from clients is mostly positive.

Our main objective is to let everyone leave the store with at least something. That’s why if the items in the store aren’t to their liking, we give them the option of creating their own design which we then replicate in acrylic.

WHAT ADVICE WOULD YOU OFFER TO YOUNG ENTREPRENEURS LOOKING TO BREAK INTO THE MARKET? McDiarmed: My advice to anyone who wants to start a business is to prepare to work hard, and always remember that your customer is the most important person. You have to be extremely strong and level-headed in order to handle the numerous challenges that present themselves.

HOW MANY BRANCHES DO YOU HAVE? McDiarmed: Three different locations: Castries, Vieux Fort, and Kingstown, St. Vincent, with a complement of seventeen employees. We’ve come a long way over the years.

If you’re preparing for your next award ceremony, or just planning on rewarding that special overachiever, call Trophy Centre Plus & SportLocka Plus on 452-4151, or email the_trophycentre@yahoo.com

DO YOU EXPORT YOUR PRODUCTS/SERVICES? McDiarmed: We do. Mostly to St. Vincent, where our company has a branch; however, we do ship to other islands upon request.

WHICH OF YOUR SERVICES/PRODUCTS ARE MOST ON DEMAND? McDiarmed: Our most popular products are our trophies and acrylic awards; but recently we’ve witnessed a great peak in our gift items and customized tomb plaques.

WHEN ARE YOUR PEAK PERIODS? McDiarmed: There are a few of those. The main one is usually between January and March, at the height of the school sports season on the island. School graduation ceremonies typically

Dave McDiarmed (pictured), founder of Trophy Centre Plus and SportLocka Plus says despite the changes it’s been through over the years, the company remains a family one.

Isle Markets Inc. to transfer funds and commingle it with Blue Isle Markets Inc. Although these jurisdictions have been scrutinised from afar before, the distinctive qualities of this case mean it has garnered broad and diverse attention within the media, sparking another round of debates about the environment in which such operations occurred across the aforementioned Caribbean territories.

THE FUTURE This matter has given an insight into the changing nature of law and its relationship with the financial sector. The particular allegations of the SEC have been addressed in the previous paragraph, and the specifics of this case and commentary on it are confined therein. Generally speaking, this case has shone a light on the growing complexity of how business operates within an increasingly digitised and economically borderless world.

For the Caribbean, this trend places hurdles in the path of economic growth and diplomatic relations. Many nations across this region have long been attractive to foreigners and multinational companies for the advantageous legal and financial incentives offered by domiciling locally.

This has seen the financial services industry (and associated legal industry) across many countries come to rely on foreign business, especially given their comparatively small populations and economic size.

Increasingly there is growing pressure on professionals and businesses in this field, both those who provide services to the market, and those who are customers within it. In recent years the European Union has released a ‘blacklist’ of alleged tax havens, with several Caribbean nations named on it.

Many, if not most, democratic nations now face a legal landscape where the vision of how sovereign states enforce law has been far outpaced by the technological advances of business and the rapid growth of globalisation. Put simply, the capacity for businesses to solicit clients, take money, and evade accountability has far outpaced what writers of democratic constitutions could imagine years ago.

The implications of this are not confined to business.

PROTECTING THE PUBLIC IN THE DIGITAL ERA In the years ahead public authorities will surely make inroads in the quest to ‘catch up’, reassert themselves and better protect the public interest. But the nature of government, and the way the wheels of it turn slowly, mean this process will not be rapid. In the intervening years it’s more important than ever that investors are proactive in guarding their capital from misuse and abuse.

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