FSC Implements Changes to Supervisory Framework During COVID-19 Pandemic

The Financial Services Commission (FSC) has embarked on a programme of key regulatory reforms designed to ensure transparency and stability of its regulated industries.

These actions are being undertaken in partnership with key industry stakeholder groups as well as the Bank of Jamaica. The FSC which is charged with regulatory oversight of the insurance, securities and private pension industries has rolled out a raft of initiatives for enhanced industry supervision. These include, inter alia:

(1) Enhanced monitoring of the insurance and securities sectors, with more frequent reporting cycles for critical indicators of liquidity pressures and/or credit risk developments, and requirements for stress testing of pandemic effects.

(2) Enhanced dialogue with regulated entities in respect of their expectations for capital adequacy and any required remedial actions.

(3) Notification requirement regarding the payment of dividends, to allow for adequate regulatory response.

The FSC maintains an even-closer dialogue with the Bank of Jamaica, given the interconnectedness of the financial sector and the synergy in regulatory responsibilities, as well as with industry groups and various market participants.

To date, the FSC is satisfied that the collaborative efforts of regulators, licensees/registrants, and market participants have maintained generally sound financial conditions, notwithstanding volatility in asset prices and evolving investment portfolio positions. The FSC will remain vigilant going forward.