by Kevon Browne
St. Kitts and Nevis (WINN): The Eastern Caribbean Currency Union (ECCU) is trying to broach the International Securities Exchange by seeking membership in The International Organization of Securities Commissions (IOSCO), and St. Kitts and Nevis just passed legislation that would help further that cause.
The Securities Bill, 2021 is a Bill to protect investors in securities in and from within the Currency Union; by regulating the securities market, exchanges and persons engaged in the securities business. The bill presents the framework used to mitigate systemic risk related to the securities industry.
During today’s (December 1) sitting of the National Assembly, the mover of the Bill, Attorney General, the Hon Vicent Bryon Jr., explained the scope and objective of the legislation and how it will impact the St. Kitts and Nevis economy.
“The Bill seeks to enhance the regulation of the security sector by removing regulatory and supervisory hindrances to the work of the Eastern Caribbean Securities Regulatory Commission, the ECSRC and would facilitate access to new investment opportunities by residents of the ECCU member states. The bill will allow also for foreign issuers to offer their securities to residents as well as to allow for the listing on the Eastern Caribbean Securities Exchange. The new Bill is also expected to create job opportunities for investment advisors by reducing the financial threshold that is currently in place,” explained the Attorney General.
“The Bill would also provide for better regulation of International Business Companies (IBC) that are registered under the respected IBCs legislation in the ECCU member countries that are engaged in the conduct of securities business, as well as assist the commission with achieving its goal of attaining membership in the International Organization of Securities Commission (IOSCO). The new Bill is also expected to create job opportunities for investment advisors by reducing the financial threshold that is currently in place.
The Bill would also provide for better regulation of International Business Companies (IBC) that are registered under the respected IBCs legislation in the ECCU member countries that are engaged in the conduct of securities business, as well as assist the commission with achieving its goal of attaining membership in the International Organization of Securities Commission (IOSCO).”
With foreign entities now being able to register their business on the regional market, citizens and residents would have the option of playing the stock market in a more lucrative manner to generate economic growth within the ECCU. However, before such growth can occur, a framework must be set up to support such a move.
“The Eastern Caribbean Securities Regulatory Commission is currently seeking such membership of the IOSCO. This is the recognised global standard setup for the regulation of securities markets. IOSCO membership requires that the legislative framework governing the securities market in the Eastern Caribbean Security System be compliant with the IOSCO core principles for securities regulation, and the ECSRC must be in a position to comply with the terms of the IOSCO,” said the Byron.
