The financial services industry plays a significant role in Anguilla's economy. However, external evaluations highlighted the need for a reform of the regulation of the industry. This was challenging for the Anguilla Financial Services Commission (AFSC), hindered by inadequate personnel capacity, regulatory tools and procedures.
In order to address these challenges, this 12 month project provides technical assistance to the AFSC to increase the capacity of AFSC personnel to conduct on- and off-site examination, and to provide the AFSC with revised regulatory tools and procedures to facilitate this examination.
This project benefited the staff of the AFSC through training and improved tools and management processes. Given the prominence of the financial sector to Anguilla’s economy, a well-functioning AFSC is expected to have a positive longer-term impact upon Anguilla’s general population as a whole through the benefit that it brings to the country’s socio-economic development.
One of the main emphases of this project was to improve the capacity of the AFSC to regulate captive insurance industry of Anguilla’s financial sector, particularly through enhanced resilience in improved policies and systems. Another aim was to work with staff to enhance knowledge and behaviours (e.g. increased scepticism and persistence and more disciplined decision making).
Following project completion and the delivery of a training program, staff have more tools to support their work, are better equipped to use them and have been more assertive in dealing with the industry. Staff are now more likely to think about costs vs. benefits to the regulator and to the industry, and to assess the degree of risk to regulatory objectives as part of regulatory decision making.
A consultation paper and draft insurance legislation was prepared for the Board of the AFSC. The AFSC Board has now approved policy instructions to bring the insurance primary legislation into compliance with the IAIS Insurance Core Principals (ICPs), and a draft Insurance Bill - amended insurance regulations (application forms and fees) - are ready to go to public consultations. The Insurance Bill’s high level plan also identified remaining work needed to bring the regulatory regime into compliance with the ICPs.