Government of St. Lucia
FINANCIAL SECTOR SUPERVISION UNIT
Banking and Finance in Small States Workshop
Curtis S. Paul, Financial Regulator, MBA
The Way Ahead…
2
The Way Ahead…
3
Demographics of St. Lucia
The population of St. Lucia is just over 175,000, which is evenly divided between urban
And rural areas, although the capital, Castries, contains more than one-third of the
population. Despite a high emigration rate, the population is growing rapidly, about
1.2% per year.
• Infant mortality rate: 15.64 deaths/1,000 live births (2000 est.)
• Life expectancy at birth: total population: 72.31 years
• male: 68.74 years
female: 76.14 years (2000 est.)
• Ethnic groups :African people 80%, Mixed race 13%, East Indian 2.4%, White
1.0%,
and East Asians, Middle eastern people and Latin Americans 3.6%.
• Religions: Roman Catholic 70%, Protestant 7%, Anglican 3%, and other (i.e.
Hinduism or Islam) and unspecified 20%.
• Languages: English (official), Antillean Creole (French patois), Broken English
Evolution of Financial Services Regulation in St. Lucia
1979
1994
1999
2010
2011
Fiscal Policy
Division
Fiscal Policy
Division
IFSU
FSSU
FSRA
Registrar of
Insurance
Director,
Financial Sector
Supervision
Registrar of
Insurance
Director,
Financial Sector
Supervision
Registrar of
Insurance
Director,
Financial Sector
Supervision
D. Banks
D. Insurance
Insurance
Act
Registrar of
Insurance
D. Banks
D. Insurance
Int’l insurance
Int’l banks
Mutual funds
Registered
agents &
Trustees
Money
Laundering
(Prevention)
Money services
Cell companies
Credit unions
Director, FSS &
Registrar of Insurance
Administrative
Secretary
Insurance
Consultant
Deputy Director
Offshore
Regulator 111
Regulator 111
2) Regulator 11
Regulator 11
Regulator 1
Regulator 1
2)Ass. Regulator
Ass. Regulator
Size
Entities
2010/2011
Registered Agents and Trustees
23
International Insurance Companies
27
Incorporated Cell Companies
5
Incorporated Cells
11
International Private Mutual Funds
8
International Public Mutual Funds
2
International Public Mutual Fund Administrators
3
International Public Mutual Fund Managers
2
International Banks
7
Domestic Banks and Non-Banks
14
Domestic Insurance Companies
27
Domestic Insurance Agents
18
Domestic Insurance Brokers
15
Total Number of Entities
162
Domestic Insurance Salesmen (number of certificates)
164
Domestic Pension Fund Plans
11
Dimension of Service
Information
sharing
Licensing
services
Customer
Support
Registration
Legislative
Review
Supervision
FSSU’s Operating Network
ECCB
Min. of
Finance
FIA
FSRA
Other
Regulatory
Bodies
Registrar
of IBC
Registrar
of
Companies
• Mission Statement
• Our mission is to maintain the integrity of the Financial
Sector through efficient and effective administration of
the laws and regulations, application of best
international standards and practices, and effective
supervision of registered entities operating in the sector.
• Vision
• Our vision is to become the most efficient and effective
regulatory authority within the Caribbean Region.
• Objectives
• Our objectives are to fulfill our general and specific
responsibilities enshrined in the respective legislations,
to develop a sound financial system, boost market
confidence, ensure consumer protection, to ensure
that the legislative framework is effective, appropriate
and consistent with international standards and best
practices, and promote Saint Lucia’s reputation as
efficient financial jurisdiction.
• Values
• Our core values are: integrity, accountability, honesty,
loyalty and fidelity.
SWO of the Primary Functions
•Limited financial
resources
•Limited training
programmes
•Small financial
Sector
•Staff with tertiary
education
STRENGTHS
OPPORTUNITIES
•implementation of
statistical
measures for risk
based regulation
WEAKNESSES
Financial Services Reform in St. Lucia
1999
2010
2011
FSSU
FSSU
FSRA
Registrar of
Insurance
Director,
Financial Sector
Supervision
Registrar of
Insurance
Director,
Financial Sector
Supervision
Registrar of
Insurance
Director,
Financial Sector
Supervision
Money services
Credit unions
Int’l insurance
Int’l banks
Mutual funds
Registered
agents &
Trustees
Money
Laundering
(Prevention)
Expected Opportunities
• Achieving a more efficient and effective level
of regulation:
– Enhanced customer satisfaction
– Drive staff motivation
• Influx of new entities in the jurisdiction
• Comprehensive regulation of financial sector
• Increase in revenue generation
Possible Challenges
• Staffs’ ability to cope with the increase in new
applications.
• The need for updated technological equipment.
• Need for capacity building of employees to face
emerging industry demands.
• Understanding best regulatory practice for
companies with complex ownership structures.
• Poor buy in by industry/stakeholders.
• Poor enforcement of statue
Possible Future Implications
• Poor buy in by stakeholders
• Inefficient enforcement of statue
• Inefficient operational performance of
regulatory authority due to a more diverse and
increased portfolio of regulated entities
Alternatives
1. Do nothing
2. Seek government assistance to fund training
programmes and develop operational capacity
3. Establish strategic relationships with other financial
services and regulatory institutions
4. Seek technical assistance from regional &
international regulatory bodies.
Action Plan
Alternatives
Implementing
Entity
2) Seek government FSSU
assistance to fund
training
programmes and
develop operational
capacity
Estimated
Time Frame
Resources
Expected outcomes
ongoing
• Monetary
• More efficient
and affective
services
• Better rating for
jurisdiction
• Influx of
applications
• Effective
regulation
• Advanced
computers
• Concessions
• Equipment
Action Plan
Alternatives
Implementing
Entity
Estimated Time
Frame
Resources
Expected
outcomes
3) Establish strategic
relationships with
other financial
services institutions
and regulatory
bodies
FSRA
Ongoing
• Develop
networking
skills
• Establishing
MOUs
• Signing
bilateral
agreements
between
states
• More
sponsorships
of training
programmes
• Sharing of
information
between
agencies
• Enhanced
human and
technical
capacity
Action Plan
Alternatives
Implementing
Entity
Estimated Time
Frame
Resources
Expected outcomes
3) Seek technical
assistance from
regional &
international
regulatory
bodies.
FSRA
ongoing
• Develop
networking
skills
• Establishing
MOUs
• Signing
bilateral
agreements
between
states
• More efficient and
affective services
• Better rating for
jurisdiction
• Influx of
applications
• Effective regulation
THE END