The main objective of the Financial Services Commission (FSC) in
Barbados is to promote financial stability in the financial system.
This is a task in which the FSC takes great pride, and all
available resources are aligned to ensure that this task is
addressed with alacrity by its highly competent staff. In order to
promote financial stability, the FSC has sought to create a
regulatory framework that is robust and that meets best practice
standards, whilst always considering the markets in which entities
operate. In its role, the FSC is also acutely aware of the need to
balance quality regulation with business facilitation, in order to
create an environment in which measured growth is possible.
In reviewing the regulatory framework which the FSC has
designed, it is worthy of note that the framework consists of
right-sized legislation, statutory filing requirements, onsite
examination, cross border supervision, and entity level assessments
that look at the static position of entities as well as forecasted
positions based on the established trends. This framework is
buttressed by an internal operational mechanism for ongoing review
and improvement of the regulatory system.
Further, the regulatory system encourages substance in the
business activity conducted by regulated entities. International
insurance companies and captive insurers registered in Barbados can
attest to this fact, both from the legislative framework and from
the operational practices of the FSC.
Companies are required to:
submit business plans detailing the
proposed insurance activity when seeking licences
submit periodic statutory returns to
the regulator, which are, in some cases, assessed by an
have a principal representative in
the jurisdiction who is responsible for the company's
have copies of financial records
available for review by the Regulator.
Board meetings are held in the domicile, and oftentimes the
Regulator entertains meetings with directors on matters related to
the company. These actions, and more, are part of a pragmatic
regulatory environment that lends substance to the activities of
the entities registered in Barbados.
The strong regulatory environment in Barbados is, therefore, a
positive for the country, since it promotes financial
stability. It is also beneficial for companies which set up
captives in Barbados, for a myriad of reasons, including the fact
that they are seeking:
speciality line cover, which is
difficult to obtain in the commercial market
an alternative to the commercial
market, because of low probability of risk occurrence
access to the reinsurance market,
to enter into other insurance
The highly trained staff and strong regulatory framework at the
FSC is recognised globally. Registered companies can confidently
display the Barbados licence when seeking to conduct global
business, because the Barbados licence is widely recognised and
Having regulated captive insurance companies for over 30 years,
Barbados has used the knowledge gained to ensure that the
registered captives are appropriately regulated, but not onerously
so, such that facilitation is possible while promoting financial
stability. Therefore, in the face of growing global queries on the
role of international financial centres, we stand resolute to any
and all assessments. The retention rate of our captive insurance
sector remains very high, due mainly to the fact that the captives
are conducting substantive insurance activity and the regulatory
framework pushes companies to ensure they are appropriately
structured as a going concern. As a regulator, the FSC commits to
ensuring that the regulatory framework remains a robust one, and it
is clear that existing and future captive insurers in Barbados will
continue to benefit from the FSC's unwavering commitment to
being the best in world at what we do. Captives registered in
Barbados are in a well regulated and stable financial environment,
ready to do business.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Over the last 40 years, the Cayman Islands has matured into one of the world's most sophisticated and successful international financial centres, providing a competitive, effective, transparent, cost-efficient and tax-neutral platform for international capital flows underpinned by an environment of legal, political and economic stability.
In the context of the Private Member's Motion, Cayman Finance strongly urges the movers of the motion and the other members of the House to remain focused on the need to protect the Cayman Islands Financial Services Industry, which is directly responsible for more than half of the Islands' economy, more than half of the government's revenue and employs more Caymanians than any other industry.
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