Bharath: Government committed to reform of finance sector

The signing of a memorandum of understanding between the T&T Securities and Exchange Commission (TTSEC) and the Central Bank is an invaluable step forward to ensure the agency is able to discharge its mandate and be an effective regulator of the capital market, Trade Minister Vasant Bharath said on Monday. At the time he was speaking at the signing ceremony of the MOU for the exchange of information and co-operation consultation between the two entities at Hyatt Regency in Port-of-Spain.

“This MOU allows the Securities and Exchange Commission to consult, co-operate with and provide information to the Central Bank of Trinidad and Tobago, the Financial Intelligence Unit, any other regulatory agency or other entity in Trinidad and Tobago to minimise duplication of effort and to maximise the protection of investors,” said Bharath who was acting as MInister of Finance.

“From a more strategic context, I believe this MOU commits key players in the local financial sector to work together more closely towards a common goal—the growth, protection and development of our financial sector, which is a priority for the ministry and the Government.”

The minister added: “Trinidad and Tobago’s economy continues to move in the right direction, and, according to the recent IMF Article IV assessment, our local financial sector appears sound with commercial banks being liquid, profitable, and well capitalized.  It is therefore imperative that Government continues its efforts aimed at ensuring growth and stability of the local financial sector, promotes financial development at all levels, and protects the economy against downside risks and existing vulnerabilities in some sectors.”

Bharath said that “Government remains committed to the progress of various financial sector reforms.”

“At present, insurance legislation is being prepared to modernize its approach to insurance regulation and supervision.  The proposed Insurance Bill will strengthen corporate governance of insurance companies, and establish more effective protection of policyholders. It will address fundamental prudential deficiencies, and will include important requirements for insurance companies which are consistent with international best practice.  

Other regulatory reforms relating to the credit union sector and private pension funds are currently under preparation as the respective pieces of legislation are substantially complete.” He challenged guests at the signing ceremony to co-operate, not just with information as specified in Section 19 of the Act, but also with expertise, best practices, and productive relationships for the common purpose of protecting investors inT&T and promoting a financial system that provides a solid foundation for strong sustainable economic growth.