- The impact of globalization on emerging economies has dictated the need to develop efficient regulatory regimes.
- These regulatory regimes should seek to ensure that investors’ interests are promoted.
- Regulators must seek to preserve the benefits of financial innovation, without managing the risks.
Executive Director of the Financial Services Commission (FSC), Janice Holness, says that the impact of globalization on emerging economies has dictated the need to develop efficient regulatory regimes that can provide vital investor protections.
She said that these regulatory regimes should seek to ensure that investors’ interests are promoted through the provision of high quality, reliable, sustainable and sensible regulation.
Ms. Holness was delivering remarks at the opening of the 10th annual Caribbean Group of Securities Regulators’ (CGSR) Conference and Workshop, being held at the Hilton Rose Hall Resort and Spa in St. James on November 6.
The three-day event is being staged through the collaborative efforts of the FSC and the Caribbean Regional Technical Assistance Centre (CARTAC) under the theme: ‘Fostering Innovation, Growth and Financial Stability in the Caribbean Securities Market – A Path to Recovery.’
With an audience of mostly securities regulators from across the region, Ms. Holness did not restrict her comments to regional issues but instead commented on financial matters that had global implications.
She warned that in proposing or implementing regulation, regulators must seek to preserve the benefits of financial innovation, without losing sight of adequately and proactively managing the risks and especially market conduct issues that usually accompany such innovation.
“As we all know, a very thin line divides creativity and ingenuity from misconduct,” she argued.
Ms. Holness said that the conference and workshop should allow regional securities regulators the opportunity to review the current status of their financial services sector, hone in on the challenges, while assessing and responding with sensible approaches to foster efficiency and maintain stability.
She emphasized that it is critical that the region has the requisite legislative framework and capacity to regulate the securities market effectively.