Recent downsizing at one of the territory’s largest financial services firms shows that the sector needs to be adaptable and diverse, then-deputy premier Lorna Smith said Friday.

Trident Trust has reduced its workforce as part of an “operational restructuring,” Ms. Smith told the House of Assembly in a statement that sought to put a positive spin on the move by praising the firm for adapting to a changing industry.

“I am pleased to report that only one individual was a forced redundancy,” she said. “Trident has followed the Labour Code and offered generous severance packages. For those individuals not retiring, they have expressed a clear preference to pursue their own entrepreneurial interests.”

Trident did not respond to a request for comment, and Ms. Smith did not say how many people were impacted by the company’s move. Asked for greater clarity on the matter, she sent the Beacon a copy of her Friday HOA speech.

‘Several elements’

In the speech, she said she had a series of meetings with Trident’s senior leadership in light of the changes.

“There are several elements to this decision,” said Ms. Smith, who until yesterday was the minister of financial services, labour and trade. “While some are commercial, there are common themes and lessons that we must learn as a jurisdiction. There is no question that automation is one of the drivers of this decision. Technological initiatives at the company means that some of the work has become less labour intensive and therefore requires fewer people.”

In what she described as a “positive signal,” Ms. Smith added that Trident is moving away from purely registered office services to providing more value-added services such as directorships, office administration and corporate secretarial services.

Learning lessons

Ms. Smith said that advances in fintech, digital assets management and other areas have brought such opportunities, but they have also thrown up challenges like automation reducing the need for administration staff.

“I am conscious that Trident is only one firm,” she told the HOA. “I am now in the process of engaging with other key industry leaders to discuss their future plans and explore how government can provide support to help them achieve those objectives.”

Ms. Smith insisted the territory is in a good position to adapt to changing times.

“I firmly believe in a bright future for our financial services sector,” she said. “We have consistently risen to every challenge that has been put before us, and I know that we will continue to do so.”

Ms. Smith also stressed that creating opportunities for workers is a government priority.

“As we adapt to new technologies, we will ensure that they are to the benefit of our businesses and create opportunities for our workforce, solidifying our resilience and adaptability,” she told the HOA.

Training

Ms. Smith added that the Ministry of Financial Services, Labour and Trade is exploring up-skilling options with outside experts, such as the Robert Mathavious Institute at H. Lavity Stoutt Community College, to ensure the finance sector can “continue to grow and diversify.”

“We must do our part to ensure that our people are both prepared and willing to be trained in these higher skills to meet the evolving needs and expectations of the financial services client base,” she said.

Pandora Papers

In 2021, Trident Trust had a brush with controversy when 12 million documents were leaked revealing the offshore assets of some 300 politicians and other public officials in the “Pandora Papers” project carried out by the International Consortium of Investigative Journalists.

Nearly four million of the leaked documents were connected to Trident branches worldwide, according to the ICIJ. At the time, Trident stood by its work and said it was committed to complying with all applicable laws and regulations.