The Trinidad and Tobago Securities and Exchange Commission (TTSEC) signed a historic Memorandum of Understanding (MOU) with fellow regulator in the financial sector, the Central Bank of Trinidad and Tobago (CBTT) on January 06 in Port of Spain, Trinidad.
This TTSEC-CBTT MOU represents a common understanding by the two authorities about how they will consult, cooperate and exchange information for regulatory enforcement purposes and is expected to further promote integrity, efficiency and financial soundness of the capital market. This agreement formalises and serves as a symbol of the pledge by both regulators to use reasonable efforts to provide any information that they possess which may relate either to the safety and soundness of any Financial or Licensed Entity under their regulatory supervision or the efficiency of the securities market.
This landmark event comes on the heels of the TTSEC joining a select group of 99 organizations to become a Full Signatory to the International Organization of Securities Commissions’ (IOSCO’s) Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information in June of 2013.
By becoming a Full Signatory, Trinidad and Tobago will benefit from:
- Sharing information with foreign regulators;
- Enhanced international reputation and credibility; and
- Increased investor confidence in its market for securities.
The passage of the Securities Act 2012 in December 2012 greatly assisted Trinidad and Tobago’s application in becoming a Full Signatory. The Act has, at its core, the promotion of regulatory cooperation, enhancement of disclosure obligations, strengthening of the regulatory framework, fostering transparency and facilitating an increase in the TTSEC’s enforcement powers. The Act also places greater emphasis on prosecuting market misconduct and manipulation.
The TTSEC is currently finalising the details of another MoU with the Financial Intelligence Unit (FIU), the third regulator within the financial services industry. This agreement is expected to be formalised and signed by February of this year.
The Chairman of the TTSEC, Professor Patrick Watson gave his commitment that the TTSEC will constantly be re-evaluating the conceptual framework and operational regime for the regulation of the industry in order to ensure continued growth and financial stability of the market, while simultaneously protecting investors. The Commission further resolves to continue collaborating with all key stakeholders in order to ensure that confidence is built in the entire financial system and the economic foundation of the country is strengthened.