My Crystal Ball      For many in the offshore industry, 2004 is expected to be a year of growth. The flux of the many OECD and FATF changes has settled with many jurisdictions having conformed to the expectations or in some cases having given up some types of business. There clearly has been in several spheres a rationalization of the operations of the service providers with the common theme of knowing what the client is doing, knowing the client, and ensuring that in the service/structure there is not just form but substance. The segmentation of the offshore business will remain. The larger banking and insurance jurisdictions will continue to focus on raising their standards and further positioning themselves as an alternative location for the headquarters of international companies. While much was said about the move of US based companies to Bermuda over the past two years, little credit was given to the attractiveness of the island as a place to live and the quality of life the residents enjoyed. ...continued

St. Lucia - an Emerging Mutual Funds Jurisdiction    - Nicholas John, Barrister-at-Law In recent months we have seen a significant increase in the number of enquiries about St. Lucia as a centre for mutual funds as more intermediaries become aware of the legislation that exists to facilitate the domiciling and administration of mutual funds in St. Lucia. This naturally has led to an increase in mutual fund business for the jurisdiction. There are three main reasons why St. Lucia has been found to be an attractive centre for mutual funds. The first is the legislation which makes provision for the licensing of public mutual funds and the registration of private mutual funds established in St. Lucia. The registration regime is particularly attractive as it facilitates what is often referred to as “professional funds” which do not require the detailed licensing process necessary for public funds. ...continued  Prospects for Offshore Banking in St. Lucia    - Jodi Boodhoo, Bank of St. Lucia International Industry experts have estimated that the Caribbean basin has attracted well over USD$3 trillion through the provision of international financial services. Despite pressures from the OECD, FATF, and other non-governmental organizations and interest groups, the well regulated Caribbean international financial services jurisdictions have been able to remain attractive to international investors and are now poised to facilitate any type and size of investment within frameworks that rival, and in some respects, surpass traditional financial centers. International private banking attracts primarily the medium to high net worth international investor who seeks flexible investment products, multi-currency facilities, personal account management services, online banking and securities trading services, and confidentiality. Other services such as corporate and trust services must also be offered by international private banks in order to meet customers’ demands for ‘one-stop shopping’ facilities. There has been an industry trend to move towards outsourcing the best investment products on the market. This allows a private bank to offer the best products and services and keep overheads such as back office administration and extra staffing to a minimum. ...continued

St. Lucia, Offshore and More    -Anthony Bristol - Deputy Managing Director FCC As part of its development policy, St. Lucia is continuously adapting its laws and policies to attract business both “on” and for want of a better phrase “off” shore. In assessing any offshore centre or, for the more politically correct, international financial centre, much attention is often paid to the nuts and bolts of that particular industry; that is the legal framework and the quality of the service providers. St. Lucia has taken this a step further with, inter alia, a stated open work permit policy for persons wishing to work in the industry and a range of tax incentives for trust companies, and professional and related services that earn foreign exchange. The past few years have shown that while there has been an increase in land prices this is not as a result of speculation or foreigners. As a result the government has removed the requirement for the 10% alien license tax and has set much lower fixed fees based on the size of the property. At the same time the approval which formerly was given by the Cabinet, is now given by a Minister unless the land being purchased is greater than a certain minimum size. The process therefore is not only less expensive, it is faster and easier for the potential investor or house buyer. ...continued  BVI - Reading the Writing : Early in 2003, the British Virgin Islands financial authorities announced the introduction of amendments to the international business companies legislation aimed at immobilization of bearer shares and maintenance of a register of directors for the BVI companies. The bearer share amendment would have required all BVI companies with bearer shares to convert these within two years into registered shares, or deposit them with qualified depositories in the BVI or outside the jurisdiction. Companies that continued with bearer shares without immobilization even after the two-year grace period would be subject to compulsory share redemption or judicial liquidation in the BVI. Also, new companies incorporated in the BVI after the new enactment would not be permitted to issue any bearer shares except in the immobilized form. It was the view of most observers that the amendments would have assisted in reinforcing the reputation of the jurisdiction and would eventually lead to the extinction of the bearer share feature. ...continued

January - February : welcome wagon welcoming intermediaries from key markets and treating them to the unique St. Lucian hospitality!    March 10-12 : ITPA Milan : Pinnacle St. Lucia and Selbourne Trust Company, part of the Jeeves Group Ltd. will be sponsoring a cocktail reception on the First/second night of the Milan event.    March 14-16 : CICA Insurance Conference Scottsdale Arizona: FCC, Hewanorra and CSB Corporate Services will be attending this annual event.    March 22-29 : Far East Road show with key intermediaries.

Featured Property : Anse Chastanet Hotel - P.O. Box 7000 - Soufriere - St. Lucia Telephone: +1 (758) 459-7000    Facsimile: +1 (758) 459-7700 Website: www.ansechastanet.com   E-mail: ansechastanet@candw.lc

It does not get much better than this!   Nestled in the shadows of the island’s great twin peaks, which rise half-mile from the sea, lies the Anse Chastanet Hotel. The exclusive resort has a rustic feel and appeals to nature lovers, although it is anything but short on amenities. There are 49 rooms, which include 12 beachfront properties and 37 cottages woven into the lush tropical landscape of the surrounding hills. The snorkeling and scuba diving at this world-class dive center are unsurpassed; receiving accolades from Conde Nast Traveler and Bride’s magazine. Helicopter access is recommended as it provides a unique aerial view of the Pitons and Soufriere. 25th Independence Anniversary - 22 February 2004 Celebrations marking St. Lucia’s 25th Independence Anniversary were launched on November 26, 2003. This year’s theme “Taking responsibility for our nation’s development” and the logo, showcase the talents of locally renowned artist Giovanni St. Omer and internationally acclaimed musician Ronald “Boo” Hinkson. The official 25th Anniversary Website, traces the island’s constitutional development and significant occurrences of the 25 years since independence. Look also for the calendar of events marking the yearlong celebration of this milestone. If you have any questions, comments or if you do not wish to be on our mailing list, please feel free to send them to enquiries@pinnaclestlucia.com The PDF version of Pinnacle News is available here: