Regulatory and supervisory reforms to encourage foreign investment
Trinidad and Tobago is embarking on a radical overhaul of its securities market, Minister of Finance and the Economy Larry Howai announced in a recent address to the Council of Securities Regulators of the Americas (COSRA). The reforms will create a range of investment opportunities for foreign investors. Financial services is a key target sector for foreign investment identified by invesTT but the reforms will also provide opportunities for investment in the privatisation of state-owned enterprises and create a more robust regulatory framework in which foreign companies can operate.
The government announced plans in its 2013 budget statement to list three state-owned securities through initial public offers: First Citizens Bank Limited (FCB); the Trinidad and Tobago Home Mortgage Bank (TTMB); and the CLICO Investment Fund comprising Republic Bank Limited shares.
On the regulatory front, the Securities Bill 2012 will help to strengthen protection for investors from unfair, improper or fraudulent practices; fostering fair and efficient capital markets, promoting confidence in the securities industry in Trinidad and reducing systemic risk.
Government is preparing legislation aimed at strengthening the regulatory and supervisory regime in accordance with international best practice as developed by the International Organization of Securities Commissions (IOSCO).
A well-regulated securities market will facilitate the internationalisation of the economy by linking it with the rest of the world in the form of inflows of capital for portfolio investment and will boost economic growth by creating incentives to stimulate investment in Trinidad.