The Financial Services Authority (FSA) was formed on November 12, 2012, when the Financial Services Authority Act, No. 33 of 2011, was passed by the Parliament of St.Vincent and the Grenadines.
The purpose of this independent body, established by statutory provision, was to implement a single regulatory framework that would be used to regulate certain entities in the financial services sector.
The FSA would be responsible for administering, controlling, and overseeing the international financial services industry and domestic non-bank industries throughout the country.
Formation and Consolidation
The establishment of the FSA represents a significant regulatory achievement for St.Vincent and the Grenadines.
For the first time, several regulatory functions were consolidated under a single authority to enhance coordination and operational efficiency.
The formation of the FSA consolidated the functional responsibilities of three previous regulatory organizations:
• International Financial Services Authority (IFSA)
• Co-operatives Division of the Ministry of National Mobilization and Social Development
• Supervisory and Regulatory Division of the Ministry of Finance
The consolidation has streamlined their functional operations, made better use of their (finite) resources, and improved regulatory coverage within both the offshore region and the onshore region.
Regulatory Roles and Responsibilities
The FSA Act sets out the roles, powers, and principles by which the FSA operates.
The objectives of the FSA are:
• Protect consumers and ensure fair treatment;
• Maintain market integrity and financial stability; and
• Encourage competition in the sectors.
The FSA is responsible for administering the provisions of the Act and supervising the financial entities to ensure compliance with the legislation governing the sector.
