St. Helena Regulates Financial Services: New Ordinance Sets Out Rules for Licensing and Supervision
Saint Helena, a British Overseas Territory in the South Atlantic Ocean, has introduced new regulations for financial services providers operating on its territory. The Financial Services Ordinance aims to ensure the stability and integrity of the financial system by setting out rules for licensing, supervision, and regulation.
Licensing Requirements
The ordinance requires all financial services providers to obtain a licence from the Regulatory Authority before commencing business in Saint Helena. To be eligible for a licence, applicants must demonstrate that they meet specific criteria, including:
- Having adequate resources
- Not having close links with other persons that may compromise effective supervision
Supervision and Regulation
Once licensed, financial services providers will be subject to ongoing supervision by the Regulatory Authority. The authority may revoke or restrict a licence if the provider fails to comply with the ordinance’s provisions, conceals material information, or poses a risk to:
- Depositors
- Investors
- Creditors
Restrictions and Revocation of Licences
The ordinance allows for restrictions and revocation of licences in various circumstances, including:
- Failure to commence business within 12 months
- Bankruptcy or liquidation
- Merger with another institution
- Insufficient resources
- Material breach of money laundering regulations
In such cases, the Regulatory Authority may impose conditions on the licence, restrict the provider’s activities, or revoke the licence altogether.
Publication of Decisions
The ordinance requires the Regulatory Authority to publish decisions regarding the restriction or revocation of licences in order to ensure transparency and accountability.
Review Process
Any person aggrieved by a decision made by the Regulatory Authority may seek review, which will be conducted by the authority itself. The review process does not suspend the operation of the original decision.
The Financial Services Ordinance aims to protect the interests of consumers and maintain confidence in Saint Helena’s financial system. It comes into effect immediately, with all existing financial services providers required to comply with its provisions within a specified timeframe.