Central Bank of Solomon Islands Defines Key Terms in New Regulation
In a move to clarify the language used in financial regulations, the Central Bank of Solomon Islands has defined key terms in its new regulation. The definitions aim to provide clarity and consistency in the application of financial laws and regulations.
Definitions
The new regulation includes definitions for several key terms:
- Company: A company refers to any company incorporated in Solomon Islands or elsewhere under any law relating to the formation and registration of companies.
- Corporation: A corporation is defined as any corporation established in Solomon Islands or elsewhere under any relevant Act.
- Court: The definition of a “court” has been clarified, specifically referring to the High Court of Solomon Islands.
Credit Institutions
The regulation also defines a credit institution as any financial institution other than a bank. This clarification aims to provide greater transparency and consistency in the application of financial regulations.
Directors
Additionally, the Central Bank of Solomon Islands has defined a director as an individual who exercises management and policy-making functions at the highest level of an organization and occupies the position of director by whatever name called. The definition includes members of the board of directors, committee council or other governing bodies.
Benefits
The new regulation is aimed at providing greater clarity and consistency in the application of financial laws and regulations in Solomon Islands. It is expected to benefit:
- Financial institutions
- Individuals
- Businesses operating in the country
- By reducing ambiguity and promoting a more stable and transparent financial environment