Jamaica’s Fintech Industry Faces Regulatory Uncertainty as Twin Peaks Model Delayed until 2025

The Bank of Jamaica’s (BOJ) Deputy Governor, Wayne Robinson, has announced that legislation for the country’s new “twin peaks” model of financial system regulation is unlikely to be passed in Parliament before 2025. The regulatory overhaul was introduced earlier this year following a high-profile fraud scandal at Stocks and Securities Limited.

What is the Twin Peaks Model?

The twin peaks model aims to separate prudential supervision from market conduct and consumer protection, with the BOJ responsible for the former and the New Financial Services Commission (FSC) for the latter. This new system will provide greater clarity and oversight for financial institutions, as well as better protection for consumers.

Impact on Jamaica’s Fintech Industry

The delay in implementing the twin peaks model is expected to impact Jamaica’s fintech industry, which has been growing rapidly in recent years. The regulatory changes were designed to provide a more robust framework for consumer protection, and the delay may cause uncertainty for fintech companies operating in Jamaica, as well as investors considering entering the market.

Additional Efforts to Improve Consumer Protection

In addition to the regulatory changes, the BOJ is also working on a new digital electronic know your customer (eKYC) system with the World Bank. This system aims to improve consumer protection in the financial services sector by enabling consumers to change banks quickly and easily, potentially reducing the time it takes for accounts to be opened.

Governor’s Emphasis on Consumer Protection

BOJ Governor Richard Byles has emphasized the importance of the twin peaks model and legislative changes in providing a robust framework for consumer protection. “We must have a more robust framework for consumer protection,” he said during a recent press briefing.

Conclusion

While the delay in implementing the twin peaks model may cause uncertainty for fintech companies operating in Jamaica, the BOJ’s efforts to modernize its regulatory framework and improve consumer protection are expected to benefit the industry in the long run. The implementation of the twin peaks model is likely to provide a more robust framework for financial institutions and better protection for consumers.

Key Points

• Legislation for the twin peaks model unlikely to be passed before 2025
• Regulatory overhaul aimed at separating prudential supervision from market conduct and consumer protection
• Delay may cause uncertainty for fintech companies operating in Jamaica, as well as investors considering entering the market
• BOJ working on a new digital eKYC system with the World Bank to improve consumer protection
• Governor emphasizes importance of providing a robust framework for consumer protection