ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 - 2024

ESTABLISHMENT OF OFFICE OF FINANCIAL CONDUCT AND INCLUSION

Over the financial year, work continued towards the establishment of the Office of Financial Conduct and Inclusion (OFCI), which will have responsibility for supervising and regulating market conduct for LFIs which operate in the ECCU. The main objectives of the OFCI are: z Financial consumer protection; z Promotion of market integrity; z Maintenance of a competitive market environment; and z Financial literacy and inclusion. In February 2024, the Monetary Council granted approval and support for the creation of this new regulatory arm for the ECCB against the backdrop of public concern regarding financial contracts, fees and charges levied by commercial banks, and the overall fair treatment of financial consumers. Drafting instructions were prepared and provided to the Legal Services Department to undertake financial market conduct and financial consumer protection which will be primary functions for the OFCI. Those instructions included: z Rule-making powers;

will be incorporated into the existing Banking Act, 2015. All retail banking products and services offered by LFIs will be covered in the legislation. The revised Banking Act will also include an Ombudsman who will be appointed to receive, review, investigate, and settle specified complaints against and resolve disputes with LFIs brought by financial consumers. Consultation on the OFCI has begun with stakeholders including LFIs, Attorneys General, Chief Parliamentary Counsels and the Regulatory Oversight Committee, which comprises the eight national regulators for non-bank financial institutions across the ECCU, the Eastern Caribbean Securities Regulatory Commission and the ECCB. The next steps required for the OFCI to become a reality include the finalisation of the draft legislation or amended Banking Act; reviews by stakeholders including the LFIs, ECCB Board and Monetary Council; a roadshow to discuss the legislation; the presentation of the legislation to the Attorneys General for passage and the development of market conduct standards. The OFCI is expected to become operational during the last quarter of 2025 once the requisite legislation is passed by all ECCB Participating Governments by September of that year.

z Oversight and monitoring powers; z Market conduct surveillance and examination powers; z Adjudication powers; and z Enforcement powers.

VIEW - Chief Director (Policy), Tracy Polius, outlines the functions and benefits of the OFCI

Drafting of the legislation for market conduct regulation and supervision is ongoing and

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