December 20, 2023
According to The Jamaica Gleaner, The Deputy Governor of the Bank of Jamaica (BOJ), Wayne Robinson, has stated that the legislation for the new ‘twin peaks’ model of financial system regulation is not expected to reach Parliament before 2025. The twin peaks regulatory model, introduced in response to fraud at Stocks and Securities Limited, involves dividing regulatory responsibilities between the BOJ and the New Financial Services Commission (FSC). The BOJ will handle prudential supervision, including oversight of securities dealers, insurance companies, and pension funds, while the FSC will focus on market conduct and consumer protection.
Robinson explained that the process requires legislative changes and collaboration with the Ministry of Finance and Planning (MOFP). The aim is to establish independent and capable regulatory entities with proper governance, accountability, and funding structures. An international consultant has been enlisted to assist with internal structures, regulatory requirements, and staffing.
The MOFP had earlier announced the BOJ’s responsibility for micro-prudential supervision, and the FSC’s oversight of market conduct. The twin peaks model is contingent on legislative adjustments, and it is expected to enhance consumer protection in the financial services sector. BOJ Governor Richard Byles, who serves as the FSC’s board chairman, emphasized the importance of the twin peaks model and associated legislation, aiming for a robust framework for consumer protection.
Byles also mentioned collaborative efforts with the World Bank to develop a new digital eKYC system, which, alongside the twin peaks model, aims to improve consumer protection. The BOJ is working towards creating a strong FSC with enhanced consumer protection powers and a new eKYC system that allows consumers to change banks quickly. Byles highlighted the desire for digitization in financial institutions, welcoming purely digital banks. The ultimate goal is to provide consumers with ease, convenience, and quick access to financial services.
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