Bahamas To Establish Financial Services Authority

by Amanda Banks, Tax-News.com, London

03 July 2009

Zhivargo Laing, The Bahamas’ Minister of State at the Ministry of Finance, has confirmed that a Financial Services Authority (FSA) is to be established in order to better regulate the Bahamian finance industry.

“The government is giving renewed focus to the financial services sector – the second pillar of the Bahamian economy,” Laing said.

According to Laing, the FSA will be formed to engage appropriate audit and inspection supervisors, market surveillance supervisors, set up a comprehensive IT program, and have an extensive recruitment and training program as well as providing oversight for the complex finance industry.

He also confirmed plans to consolidate the islands’ financial services regulators: he said a twin system would be created by the end of this year in which there is the Central Bank and one other regulator responsible for all areas of financial services, building on oversight that currently only exists for domiciled banks and trust companies. The Authority will effectively take on the roles of the securities, compliance and insurance commissions, he further explained.

According to Laing, prominent parts of the government’s plans include the creation of a Market Monitoring Department, Authorization Department and an Audit/Inspection Department, with a specialist unit also being proposed to increase awareness of financial services at a high school level in collaboration with the Ministry of Education.

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