FSC firm on regulation

Ian Carrington. (FP)

By Natasha Beckles | Thu, February 09, 2012 - 12:00 AM

The Financial Services Commission (FSC) is moving to strengthen monitoring and regulation of companies within its purview.

According to chief executive officer Ian Carrington, the regulatory body’s plans include greater online functionality with regard to data submission and analysis and more attention to the solvency of banking and non-banking financial entities.

Speaking recently during the launch of the Central Bank of Barbados’ inaugural Financial Stability Report, Carrington said the FSC was currently engaged in an information technology diagnostic and strategic plan that would emphasize online filing.

However, he said online capabilities would also include the computation of companies’ levels of solvency.

“We are also engaged in the process of relooking the whole question of what should be the basis in terms of computing solvency and we are essentially moving from the current very simple approach to computing solvency to not only adopting solvency standards but also in terms of addressing solvency from the point of view of the nature and the size of the company . . . ,” Carrington said.

The former director of the National Insurance Scheme noted that the FSC, which was established on April 1, 2011, had brought “a significant portion” of the data on the insurance industry up to date.

Noting that this data had been in arrears for some time, he expressed concern about the length of time it takes to collect data in the financial services sector.

“We need to be able to gather that data in a more timely manner so that it can be used in a proactive as opposed to a reactive manner.

“I think what we have been doing . . . is reacting as opposed to making forward plans. . . ,” he said.