Request for a Consultant to Undertake an Assignment

Pertaining to

“The Establishment of a Regional Financial Services Secretariat”

Terms of Reference

  1. CONTEXT

Background

Caribbean countries have been diversifying their economies away from an overdependence on commodity exports to higher concentration on services industries such as financial services. In this regard, financialserviceshave become thesecondlargestcontributorto gross domestic product (GDP)intheCaribbeanregion as such that in 2011 it accounted for 17% of GDP in the Region.ThemainCaribbean territoriesinvolvedin theprovision ofinternationalfinancialservicesandacting asleading small internationalfinancialcentres(IFCs)aretheBritishEU Overseas Countries and Territories (OCTs)led mainlyby The Cayman Islands,BermudaandTheBritish Virgin Islands. Amongst theleadingCARIFORUM countriesinvolvedin internationalfinancialservicesareTheBahamasand Barbados,withAntigua and Barbuda, Saint Lucia and Saint Kitts and Nevisbeing leaders amongst theOrganization of Eastern Caribbean States (OECS).

Given the importance of the international financial services sector in the Region, the Caribbean Forum of the African, Caribbean and Pacific Group of Countries (CARIFORUM) remains continuously challenged to ensure that the sector remains a viable contributor to growth. The nature of challenges confronting the sector is complex and diverse. Not only have these sectors had to withstand global financial and economic crisis, but CARIFORUM IFCs have also comeunderincreasedscrutinythroughanumber of developedcountryled initiatives,including those relating to harmfultaxcompetition,anti-moneylaunderingstandards,taxbaseerosionand profit shifting (BEPS)andautomatic exchange of informationstandards. Moreover, CARIFORUM countries remain cognizant of commitments to cooperate on finance issues outlined in Article 236 of the CARIFORUM-EU Economic Partnership Agreement (EPA) especially as it relates to tax policy and administration.

Giventhis environmenttheRegion mustseektocollectivelyaddresschallenges facing the international financial services sectorintheinterest of ensuringitscontinuedviabilityandfurtherdevelopment. In particular, there is an urgent need for the establishment of a technically competent organization which would have the capacity to undertake advocacy, research and advisory functions on an on-going basis on behalf of CARIFORUM governments and private sector actors.

At the Twentieth Meeting of the Council of CARIFORUM Ministers Caribbean Export Development Agency was identified as the organization to facilitate the establishment of a Task Force charged with providing support to the development of the financial services sector, within the scope of its 10th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP).It was suggested coming out of the four (4) meetings of the Task Force in 2013 as well as a Meeting of Ministers Responsible for Financial Services in CARIFORUM held on December 9, 2013, that the Caribbean lacked a rapid response mechanism that could address issues affecting the international financial services sector as they emerge in a timely manner. Accordingly it was recommended that a Regional Financial Services Secretariat should be established. This recommendation was further validated at the Third Caribbean Conference on International Financial Services which was hosted jointly with the Government of the Commonwealth of the Bahamas over the period March 31 – April 2, 2014.

1.2Overarching Program Objectives and Components

Caribbean Export is implementing the 10th EDF RPSDP, between March 2011 and December 2016 at a total estimated programme cost of €32,089,000. The overall objective is to contribute to the gradual integration of CARIFORUM countries in to the World economy and by so doing to enhance regional economic growth and by extension alleviate poverty. Pursuant to the realisation of this overall objective, the 10th EDF RPSDP has four (4) specific objectives. These objectives are to:

  • Enhance Competitiveness and Promote Innovation among the CARIFORUM’s Private Sector;
  • Promote Trade and Export Development among CARIFORUM States;
  • Promote stronger trade and investment relations among the CARIFORUM and French Caribbean Outermost Regions as well as the European Union Overseas Countries and Territories in the Caribbean;
  • Promote stronger trade and investment cooperation between CARICOM and the Dominican Republic.
  • Caribbean Export’s Work in International Financial Services

The Consultancy will build upon and is a reflection of the work being undertaken by the Task Force for the Promotion and Protection of the Caribbean Financial Sector (TFP-CFS) which was established by Caribbean Export. Moreover, this consultancy will facilitate the implementation of the recommendation of the Meeting of Ministers Responsible for Financial Services in CARIFORUM held December 9, 2013 to establish a Caribbean Regional Financial Services Secretariat. The Consultancy is also consistent with Caribbean Export’s involvement in facilitating the establishment of a Caribbean Regional Financial Services Institute.

  1. OBJECTIVES AND ACTIVITIES OF THE CONSULTANCY

The objective of the consultancy isto develop a detailed road map which would inform the establishment and operation of a Caribbean Financial Services Secretariat, as agreed at the Meeting of Ministers Responsible for Financial Services in CARIFORUM held on December 9, 2013 in Barbados. In this regard, the consultancy will:

  • Identify and analyse the political, economic, technological and legal factors impacting the establishment and operation of the Secretariat;
  • Identifyand evaluate existing best-practices and assess their applicability to the Caribbean environment;
  • Regarding the functions of the Secretariat, identify the specific needs of private and public sector stakeholders – including but not limited to firms in Caribbean IFCs, education/research institutions such as the University of the West Indies, government ministries and regulators in Caribbean IFCs – and an effective mechanism for coordinating regional advocacy initiatives;
  • Define a role for the Secretariat as the coordinator of a Regional strategic approach to developing the international financial services sector;
  • Identify the human resource requirements and an appropriate organizational structure necessary to the functioning of the Secretariat;
  • Identify potential sources of funding for the Secretariat and develop a strategy for resource mobilization and the sustainability of the Secretariat;

III. METHODOLOGY

3.1 Analyseand assess availabledocumentation relating to the objectives of the consultancy.

3.2 Conduct interviews/consultations with key public and private sector stakeholders in Caribbean IFCs including but not limited to banking associations, securities/stock exchanges, monetary authorities, central banks, non-banking regulators etc.

3.2Field visits where deemed necessary: to undertake relevant site visits and stakeholder consultations.

IV. OUTPUTS AND SCHEDULE

4.1Deliverables:

  • A strategic plan which mustinclude:

the objectives and goals of the Secretariat pursuant to stakeholder requirements;

external environmental analysis;

staff requirements and terms of reference;

the identification of possible sources of funding;

strategy for the sustainability of the Secretariat;

the Secretariat’s relationship with complementary organizations;

key performance indicators (KPIs).

  • A road-map for the establishment of the Secretariat.

4.2 Final Reporting

A terminal report submitted upon completion of the assignment.

V. CHARACTERISTICS OF THE CONSULTANCY

5.1 The consultant will be supervised by the Services Specialist based at the headquarters office in Barbados.

5.2Duration and type of consultancy.

The consultancy will spread over the duration of twomonths and is expected to commence in June2014.

5.3The consultant will work out of the Caribbean Export office, with travel to beneficiary countries and offices as required.

5.4Payments.

The consultant will be paid in the following manner:

  1. Firstpayment of 30% of contracted service fees based on the submission and acceptance of an inception report;
  2. Second payment of 40% of contracted service fees based on the submission and acceptance of an interim report;

ii.Final balance upon submission to and approval by Caribbean Export of all outputs/deliverables listed under paragraph 4.1 above, plus any outstanding claims relating to travel and approved mission related expenses with evidence of cost.

VI.PRESENTATION OF THE PROPOSAL AND SELECTION

6.1 TheInterested consultant should present a proposal to Caribbean Export briefly outlining:

i. Methodology for conducting the work under this consultancy (max 2 pages);

ii. Proposed work plan (max 5 pages);

iii. The names and CVs of the individual consultant(s) to be assigned;

iv. The estimated number of days on the assignment; and

v. Itemized budget and indication of the total cost of the proposed work plan.

Caribbean Export will select the best proposal andwill under no circumstances increase the agreed amount of the consultancy once a contract has been drawn up.

VII. SUBMISSION OF PROPOSAL

The proposal should be presented by May 29, 2014 to MsAllyson Francis, Services Specialist, Caribbean Export Development Agency at:

Address:The Caribbean Export Development Agency, 1st Floor, Baobab Tower, Warrens,

St. Michael, Barbados BB22026.

Tel. +1(246) 436-0578; Fax. +1(246) 436-9999

The proposal may be submitted electronically to MsAllyson Francis at email and copied to Mr Markson Gill at email .

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