Strengthening Non-Bank Financial Institutions Supervision in Jamaica
Challenge
Amid the ongoing economic reform process in Jamaica, the objective was to enhance financial stability. Additionally, the IMF assisted the Financial Services Commission (FSC) of Jamaica with the transition to a trust-based framework for so-called ‘retail repos.’
Approach
The IMF, with the support of Canada, assisted the FSC to strengthen its supervisory capacity for the securities and insurance industry, as well as to further develop and implement its crisis management and resolution framework. The IMF regularly provided input on any needed regulatory revisions that would permit a better implementation of the risk-based supervisory framework. The IMF also advised the authorities on strengthening the crisis management framework.
Impact
The IMF helped the authorities complete the transition to the trust-based structure, put in place a more transparent and robust framework for the securities dealers industry and facilitated a gradual downsizing of retail repo business. In the last two years, the FSC’s capacity and approach to supervision of insurance and securities firms has been strengthened. The IMF continues to train supervisors in risk-based supervision and has assisted in the revision/creation of risk matrices, impact assessments, and supervisory procedures as needed.