Host: Financial Services Authority
Start date: 15/06/2015
End date: 30/06/2016
Policy area: Economic Policy
Policy expert: Samantha Attridge
Project manager: Joel Burman
The Commonwealth Finance Ministers 2009 Communiqué paragraph 12 stated `Ministers... noted developing member governments’ needs for technical assistance to implement internationally agreed standards ...They urged the Secretariat to give particular consideration to developing linkages between Commonwealth regulators for the benefit of all members’.
In 2009 Commonwealth Finance Ministers tasked the Commonwealth Secretariat to find a means of strengthening the linkages among financial sector regulators in Commonwealth countries. In response to this mandate a detailed survey of members was undertaken by EPD (formerly EAD) which showed that many countries are facing significant capacity challenges in implementing the changing global regulations in finance. Respondents therefore highlighted the need for practical on-the-ground support through the attachment and secondment of experienced practitioners from countries who had successfully implemented these changes. They also highlighted the added potential this could afford to tackling specific policy challenges, as well as for wider support with policy reviews and consultations. Members were of the view that there was significant expertise throughout the Commonwealth and this could be valuable in helping them meet these needs.
This project therefore aimed to establish linkages between Commonwealth Financial Sector Regulatory bodies through an assistance programme coordinated by the Commonwealth Secretariat. These linkages will assist members to meet the challenges of implementing global regulatory standards.
The goal of this project has been to strengthen financial sector regulation in the Commonwealth through the provision of assistance to developing countries in implementing global financial sector regulatory standards.
This has been supported through the Secretariat’s network of financial sector regulators who shared knowledge and experience and developed the capacity of developing country institutions. Expert inputs and linkages between regulators also provided a valuable resource for member countries to draw on and enhance the international effort to raise regulatory standards. This has also enabled a fuller understanding of the challenges facing developing countries in the implementation of global standards; offered a channel for identifying and helping fill strategic needs; and facilitated input into training and capacity building.
Financial regulators and central bodes of six (6) small island developing Commonwealth states have received support though this project, leveraging the expertise and experience which exists in the comparable organisations of more developed small Commonwealth states.
In Rwanda a review was conducted of on-site examination and off-site analysis systems and procedures and advise on possible improvements that incorporate global regulatory standards. A CFTC expert assisted in and advised on separation process for remaining composite insurers, and provided advice, guidance and practical training to staff in the Financial Stability Directorate on a range of issues. Specific training of NBR staff was provided in: AML/CFT, Market Conduct and Consumer Protection; Insurance Accounting. Finally, a Corporate Governance and Board Oversight Responsibility workshop was conducted.
The Central Bank of Seychelles has benefitted from the development of both on-site and off-site Analysis Manuals for insurance supervisory personnel, accompanying capacity building and recommendations on the enhancement of insurance industry regulation in the Seychelles. In supporting these recommendations, legislative improvements to the Financial Services Commission Bill were also provided.
The Financial Services Commission, Gibraltar, provided support to the International Financial Services Authority, St Vincent and the Grenadines. Outputs achieved are as follows:
Support to St. Lucia has delivered better supervisory practices for insurance protocols relating to off-site analysis and on-site inspections, supported by a structured training programme and capacity building. The CFTC expert has provided:
The Guernsey Financial Services Commission provided support the both the Cook Islands and St. Kitts and Nevis (Nevis Office), though a total of four visits and follow-up recommendations and support. The following outputs were produced:
St. Kitts and Nevis