Business Monday: Positive move for BSE

THE recent recognition of the Barbados Stock Exchange as a designated stock exchange should serve to enhance capital investment by UK investors.

This is one of the positive implications of the designation by the United Kingdom Her Majesty’s Revenue and Customs (HMRC).

BSE’s Managing Director, Marlon Yarde, said that the designation will also provide viable investment alternatives for a wide section of the British public. “In addition, it will be of benefit for Barbados and UK investors through the preservation of a number of fiscal benefits,” Yarde said.

These include provisions where securities listed on the BSE may be held in tax advantage individual savings accounts and personal equity plans by UK investors. Another benefit is that holders of debt securities satisfying the Eurobond exemption and listed on the BSE are exempted from withholding tax on distributions underlying these debt securities, and the case where inheritance tax allowances may accrue to UK holders securities listed on the BSE.

Another provision is that UK pension schemes will be permitted to hold securities listed BSE, giving companies and funds listed on the BSE access to a larger market of sophisticated well capitalised investors.

The BSE’s Managing Director also said that the recognition of the BSE as a recognised stock exchange under Section 1005 of the UK Income Tax Act, represents a significant milestone in the BSE’s continued development.

“This will not only enhance the profile of Barbados, as an internationally recognised financial centre, but also provide an avenue for sustainable and progressive development of the capital markets with Barbados and the wider Caribbean Community region,” Yarde remarked.

He added that the pursuit of the HMRC recognition was part of the BSE’s Go Global Strategy aiding further in the development of the Exchange’s international Securities Market.