The regulatory regime applicable to banks
i Recent legislative changes
The IFSA has now been repealed by the Financial Institutions (Amendment) Act, 2018 (amended FIA). A new Guideline applies to licensees previously licensed under that Act and that are transitioning to the Financial Institutions Act (FIA). Such licensees are now deemed to be licensed under Part IIIB of the amended FIA as foreign currency earning banks (FCB) since 1 January 2019. The amended FIA provides in Part IIIA for the licensing of financial holding companies. Section 41G of the amended FIA contains the transitional provision for companies licensed under Part IIIB and carrying on the functions of a financial holding company. Licence fees continue to be applied at current levels until otherwise advised by the CBB.
Subsequent to the statutorily permitted transition, there will be a six-month grace period, which commenced from January 2019, during which a licensee’s status continues uninterrupted and during which any legal or regulatory matters that emanate from the transition to the amended FIA (such as filing amended articles with the Corporate Affairs and Intellectual Property Office (CAIPO), or attending to outstanding filings with the Barbados Revenue Authority or the National Insurance Department) can be completed. The CBB has indicated that it will give consideration to extending the grace period in extenuating circumstances, but it reserves the right to recommend that a licence be…