Barbados is set to undertake a sweeping overhaul of its financial services legislation, as chairman of the Financial Services Commission, Sir Patterson Cheltenham, signalled a major push to modernise regulation and strengthen the island’s global competitiveness.
In the keynote speech to the sixth annual Barbados Risk and Insurance Management Conference at the Wyndham Grand Barbados on Thursday, Cheltenham, who assumed the role on March 1, said the sector stood at a critical juncture requiring decisive reform.
“We are not simply updating rules; we are seeking to fundamentally modernise the supervisory architecture of our financial services sector, making it more principles-based,” he said.
Cheltenham said the legislative reform project targeted the non-bank financial industry, including insurance, pensions, securities and credit unions.
“We intend to develop a framework that is flexible yet resilient, in which the greatest scrutiny is placed on areas that pose the greatest risk to the stability of the financial system and to Barbados’s reputation,” he said.
He explained that the reforms, expected to be rolled out over a two-year period, are aimed to balance adaptability with strong oversight while safeguarding the integrity of the financial system.
“For us, it is a deliberate effort to get the framework right, to understand the risks, seize the opportunities, and ensure that when Barbados opens its doors, we are operating under a regime that is robust, modern and globally respected,” Cheltenham said.
The FSC will engage industry stakeholders as part of the reform process, with consultations planned to allow practitioners to contribute early to the legislative changes.
Cheltenham stressed that governance would remain central to the new framework, warning that weak oversight could undermine both stability and reputation.
“Whether in pensions, insurance, securities or the credit union sector, strong governance is non-negotiable,” he said, adding that administrators must be held accountable for the prudent management and protection of members’ interests.
He also pointed to the need for Barbados to more aggressively promote its financial services industry internationally, noting that awareness of the jurisdiction remained limited even in established markets.
“We cannot assume the world will find us. We must go out and find them,” he said, calling for stronger collaboration between regulators and industry bodies to market Barbados as a stable and credible financial domicile.
Cheltenham signalled that the reform agenda formed part of a broader effort to reposition Barbados as a more competitive and resilient financial services hub, capable of responding to evolving global risks while maintaining investor confidence.
(SZB)
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