New legislation strengthens financial sector

The Securities Industry Bill 2009 has empowered the Trinidad and Tobago Central Bank to be a more forceful regulator. The Bill, which repeals the Securities Industry Act 1995, seeks to provide protection to investors from unfair, improper or fraudulent practices; to foster fair and efficient capital markets and confidence in the capital markets of Trinidad and Tobago, and to reduce systemic risk.

Central Bank Governor Ewart Williams said in April 2009 that financial legislation had not kept pace with developments in the banking and insurance sector. Williams said developments included significant consolidation among banks, adding that the three largest insurance companies accounted for three-quarters of the business in the insurance industry, and that insurance companies, to compete with banks, had begun offering products such as mutual funds and annuities to their customers in order to compete with banks.