Financial Services

An Expert's View about Banking, Finance and Insurance in Mexico

Posted on: 25 Nov 2011

For Financial Services this report concentrates on five main business niche areas: • Public Private Partnerships • Listings (stock markets) • Arbitration (Legal services) • International Finance Reporting Standards (IFRS) • E-Money

Financial Services in Mexico After 2010, Mexico is fairing relatively well due to sound management of public finances and taxation reforms, which have allowed it to implement counter-cyclical actions. This, combined with its strategic geographical position and network of trade agreements affords Mexico direct access not only to the world's largest market but to different regions and to more than one billion consumers on several continents. It also has a young population, which is increasingly well trained, with a strong focus on the skills that Mexico needs to continue developing in the future. Market overview Mexico has the second largest economy in Latin America and according to a study conducted by Goldman Sachs, it may become the 5th largest economy in the world by 2040. For Financial Services we are concentrating on five main business niche areas: ? Public Private Partnerships ? Listings (stock markets) ? Arbitration (Legal services) ? International Finance Reporting Standards (IFRS) ? E-Money Key opportunities The National Infrastructure Plan contemplates a number of infrastructure projects. Some of them consist of: ? The modernisation and/or refurbishment of the transversal and longitudinal road work that connect the country's main cities, with small towns, ports, borders and tourists centres. ? Develop public services like hospitals and cultural centres. ? The Federal Government is also considering developing prisons and water projects. ? The Mexico City Govenrment has already planned for eight new PPP?s projects with an investment of ?2822 million. These eight projects include a couple of new intercity highways, a street car project for Mexico City?s historic down town area, a third line for the Mexico City underground and two high security prisons. LISTINGS ? Mexico has a significant number of companies doing business internationally, which are reaching the point where they need capital to grow and realise their expansion plans. They are starting to meet international requirements for accountability and transparency and have begun to list in New York. ? In May 2008, a well-known mining company, Pe?oles announced it would list its gold and silver operations on the London Stock Exchange. Fresnillo plc, the world's largest primary producer of silver has now achieved a successful flotation. (www.fresnilloplc.com). ARBITRATION ? Legal services, in particular arbitration are particularly relevant in business in Mexico due to the significant number of companies developing international business. ? Currently there are a number of local law firms that are in partnership with international law firms, which are keen to further promote London as the top arbitration centre in the world. IFRS ? By 2011-2012 all companies in Mexico will have to prepare and produce all of their financial statements under IFRS. The UK Accountancy sub-sector is a pioneer on IFRS. ? At present, the universities offering post-graduate degrees on IFRS are ITAM, and Tecnologico de Monterrey). ? In October 2011, the Mexican Institute of Public Accountants signed an MoU with the ICAEW. Also IA Seminars and Baker Tilly Mexico (the only UK accountancy firm established in Mexico) and are currently working together. Latest export opportunities ? Financial & Professional Services Latest export opportunities - Mexico Getting into the market The key into the Mexican Financial Services market is for UK to find local partners or end users. Mexican companies and decision makers usually enjoy having initial face to face negotiations to know their potential partners. Therefore, it is best when UK companies have one-on-one meetings with sector players because they can obtain further information. More about doing business in Mexico Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. Fernando Estand?a British Embassy Mexico City Telephone: (+52 55) 1670-3207 Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events ? Financial & Professional Services Latest events ? Mexico Useful links More about OMIS and other UKTI services for exporters
Posted: 25 November 2011

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