Financial Services Commission Holds Annual Meeting with the Industry under the theme ‘Regulating for Stability and Growth’

Providenciales, TCI, December 7, 2016 -The Financial Services Commission held its Annual Meeting with the financial services industry in Providenciales on 1 December 2016.  The meeting, which was held under the theme ‘Regulating for Stability and Growth’, brought together policymakers such as H E the Governor and the Minister of Finance, Investment and Trade, and persons regulated by the Commission.  The meeting provided a forum for a constructive discussion on the role of regulation in financial sector development.

The Chairman of the Commission, Sir Errol Allen, set the stage for the meeting with an address focused on developments regionally and internationally for diversify the financial services industry and reducing its dependence on traditional banking.  He concluded that “the Commission cannot be oblivious to developments taking place across the international financial system, and while these developments may not arrive at our doorsteps in quick time, it is important that we be prepared to make our jurisdiction adaptable to change in a vastly competitive environment.”

H E the Governor and the Hon Minister of Finance both reaffirmed their commitment to the development of the financial services sector in the TCI.  The Governor noted the need for economic diversification to reduce the jurisdiction’s dependence on one sector, tourism.  He also recognized that a strong institutional framework – such as, the rule of law, education, immigration policy, a good reputation – was important for financial sector development.  The Minister stressed the importance of maintaining a strong working relationship between the Commission, regulated sectors and the Government.  This relationship should lead to the development of a comprehensive strategy focused on the TCI’s competitiveness.

The meeting deliberated on the impact of de-risking, which results in certain sectors losing access to banking; financial inclusion and how to provide more persons with access to the financial system; the competitive advantages, if any, of establishing a beneficial ownership registry; the need for more modern legislation to facilitate the development of a wider suite of competitive products; and the need for more investment from all stakeholders in financial sector development.

The Minister committed to continuing to work with the banks locally and at the level of their regional and international head offices to find a solution to the de-risking phenomenon.  Financial inclusion was being addressed in part by the recent introduction of credit union legislation.  The Commission committed to continuing work on the modernization of financial legislation in 2017, with priority being given to banking, insurance and mutual funds legislation.  All stakeholders will be engaged in discussions on the issue of a beneficial ownership registry.

The Commission’s Managing Director, Mr. Niguel Streete, provided an overview of the Commission’s strategic plan for the next three years. Mr Streete noted that “Financial sector stability is critical to economic development; accordingly, the Commission is well placed, through the quality of its regulation, to pay a pivotal role in national development”.

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