Acting Chief Executive Officer of the Financial Services Commission (FSC), Kester Guy
Regional insurance and financial advisors are being reminded about the importance of their sector having a sound regulatory framework and environment in which to operate.
Acting Chief Executive Officer of the Financial Services Commission (FSC), Kester Guy highlighted this as he delivered remarks yesterday morning at the Caribbean Association of Insurance and Financial Advisors (CARAIFA) 31st Sales Congress being held at the Hilton Hotel this week under the theme ‘The Power of Imagination’.
His comments came as he told the audience which included delegates from Antigua, Jamaica, Trinidad and Barbados among others, that the regulatory framework particularly in small open economies like ours is constantly being scrutinised by international bodies and is likely to receive negative reviews if not up to par, harming the jurisdiction’s reputation and undermining the confidence of the population in the financial system, but he is adamant regulation still should not be viewed as a barrier to success.
“Good regulation does not stifle innovation, and is not for the purpose of policing you. Good regulation is a facilitator of progress and can spur growth, investment and confidence within our system. We live in a dynamic environment which is ever changing and invariably the way we do business will change. You must be flexible and proactive in order to manage this change and stay at least in line with the curve,” he said.
He went on to state that regulators in addition to assisting with business facilitation and innovation are concerned with assessing potential risks and ensuring that new products and services, or even better ways of doing things, do not inflict more harm than good.
“The modern regulator no longer says it cannot be done or it is not allowed, instead there is new willingness to examine the possibilities before a final determination is made. Of course there will be some instances in which these great ideas that they have, may not be able to be facilitated,” he explained.
He went on to say the regulatory framework is focused on quality regulation in accordance with international core principles and he maintained a stable and reliable regulatory framework is critical to the activities in which they engage in the insurance industry.
“It is recognised that the insurance industry requires a regulatory framework that supports you in fulfilling your role in the economy. The FSC recognises that the insurance industry is a key pillar in the stability of our financial market and we will therefore ensure that the regulatory framework is able to maintain the industry now and well into the future,” he added.
Guy’s comments came as he noted that there is still some fine tuning that has to be done to the regulatory framework, legislation to be updated and risk assessment mechanisms that have to be strengthened. (JRT)