Franklin Templeton opens Fiduciary Bank and Trust Ltd; woos high net worth individuals
By TAMARA McKENZIE,Guardian Staff Reporter tamara@nasguard.com
Building on their lengthy presence in The Bahamas, the Franklin Templeton Fiduciary Bank (FTFB) and Trust Ltd was officially opened at Lyford Cay on Monday. The bank is the newest member of the Franklin Templeton Investment Family and joins some 264 companies that hold bank and Trust licences in The Bahamas.
Following an elaborate ceremony on the front lawn of the new bank, Chairman of FTFB, Anne Tatlock, told The Guardian that the new bank will offer investment management services to high net worth individuals and families, banking services and family resource management.
Mrs Tatlock said FTFB evolved from the widely recognized Templeton intellectual capital bank, which is firmly rooted in New Providence by Sir John and later Franklin Templeton. She said although there is much competition in the banking industry in The Bahamas, FTFB will distinguish itself from other banks because they are placing more emphasis on investment and planning and will also focus on giving advice as opposed to "pure banking."
"We quickly overcame the fear of all the competition. When one considers that under Sir John, the Templeton Resources here [in The Bahamas] has been so fully developed and they are extraordinarily good worldwide for their investment management capabilities," she said, adding that because Templeton has already distinguished itself in the area of investment management, FTFB can now blend an array of other capabilities.
Also addressing the opening ceremony, Prime Minister Perry Christie said that the opening of FTFB shows that the company feels safe doing business in The Bahamas. He noted that this was an exciting time for the Bahamian financial industry, which marked a period of progress and growth. He said the financial industry has always been a valued part of the Bahamian economy, contributing some 15 per cent to the Gross Domestic Product.
Presently, Mr Christie continued, the banking sector in The Bahamas consists of 264 institutions with about $300 billion in assets. He said it was estimated that companies in The Bahamas have some $1 trillion in assests under management, which marks about 15 per cent of the global market. Such growth and development, he said, takes great effort and a constant willingness to change, therefore the Government plays a key role in such changes.
The Prime Minister also told the Chairman and other partners of FTFB that their presence in The Bahamas heavily impacted the quality of life for Bahamians and therefore affirmed that the launch of FTFB was another wonderful step in the growth of the financial industry and the economy of The Bahamas.
Governor of the Central Bank, Julian Francis, said the opening of FTFB has demonstrated that The Bahamas is a credible jurisdiction that is able to attract a first class institution from a highly regulated environment such as the United States. He said that American regulators closely examined the proposal of FTFB to open in The Bahamas and after discussions with Templeton and the Central Bank of The Bahamas; the regulators fully agreed that the bank's opening was an "interesting proposition that merited their support."
"I believe it [the opening of FTFB] is a great opportunity for growing our sector, given the experience that we have had with Templeton. The organization has contributed enormously to the financial services of The Bahamas and I believe that we will see over the next 10 years that they will create a fine banking institution," the Governor stated.
Minister of State for Finance, James Smith said that the opening of FTFB was a very important milestone for The Bahamas because since 2001 when The Bahamas was blacklisted by the Organization of Economic Cooperation and Development [OECD], there was a reduction in the number of banks and trust companies operating in The Bahamas and many companies were unable to meet the new conditions.
Mr Smith said that when a bank with the "Templeton" name is established in The Bahamas, it shows a sense of "renewed confidence" in the financial services sector. He noted that in the banking and financial services sector, there is a tendency to play "follow the leader" and he therefore expects to see additional "first class" institutions similar to FTFB re-emerging in The Bahamas.
Mr Smith also pointed out that more emphasis is being placed on having "first class" financial institutions establish themselves in The Bahamas, as opposed to those established some 15 years ago when regulations were "slack." He said presently, The Bahamas is seeing a "new beginning" in the banking industry and unlike 15 years ago, many first class reputable institutions coming into The Bahamas."
"This will augur well for the development of banking well into the future, because the Templeton Fiduciary Trust is here for the long run, and not to be in an out and take advantage of what used to be our regulatory slackness," he said.
The Templeton name has long been associated with The Bahamas. Mr John Templeton was described as one of the most remarkable individuals in the financial sector to ever leave his imprint on The Bahamas. Franklin Resources Incorporated has evolved into a holding company from a wide array of subsidiaries. The company offers investment advice to mutual funds, investment products, underwriting, transfer agency functions, investment management and retail banking.
John Marks Templeton has been a pioneer in financial investments. Beginning a Wall Street career in 1937, Templeton created some of the world's largest and most successful international investment funds. Termed "arguably the greatest global stock picker of the century" by Money Magazine (Jan, 1999), he sold his various Templeton funds in 1992 to the Franklin Group for $440 million.
