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Trinidad and Tobago’s JIH: A Central Hub for Fintech Regulation

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In a bid to foster innovation in the financial sector, Trinidad and Tobago has established the Joint Innovation Hub (JIH), a central point of contact for fintech firms seeking authorization and regulation. The JIH is run by three domestic regulatory authorities - the Central Bank of Trinidad and Tobago (CBTT), the Securities and Exchange Commission of Trinidad and Tobago (TTSEC), and the Financial Intelligence Unit of Trinidad and Tobago (FIUTT) - working together to streamline the fintech regulatory process.

Supporting Innovative Firms

The JIH offers a range of services to support fintech firms, including:

  • Guidance on authorization
  • General fintech-driven products or services
  • Meetings with regulatory authorities

The hub assesses applications against publicly available eligibility criteria, ensuring that innovative products and services meet specific requirements, such as:

  • Demonstrating a new way of offering or delivering financial services
  • Improving efficiency
  • Having an approved testing plan

Regulatory Sandbox

In May 2021, the three authorities proposed a joint Regulatory Sandbox (RS) in Trinidad and Tobago. The aim is to encourage the safe introduction of fintech-driven business models into local markets while allowing authorities to improve their understanding of innovative business models and firms to better understand regulatory frameworks.

The RS will be launched in two phases:

  • Phase 1: Focused on electronic money institutions (EMIs)
  • Phase 2: Open to broader fintech innovations

Key Features

  • Provisional registration regime for EMIs
  • Waivers or variations to certain registration requirements
  • Open to broader business models, including:
    • Crypto
    • Crowdfunding
    • Robo-advice
    • Other innovative products and services
  • Applications assessed against publicly available eligibility criteria
  • Testing period initially limited to 6 months, with no extension beyond 12 months

Conclusion

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The Joint Innovation Hub and Regulatory Sandbox in Trinidad and Tobago are significant steps towards creating a conducive environment for fintech innovation. By providing guidance, support, and regulatory oversight, the JIH and RS aim to promote the safe and efficient introduction of innovative financial products and services into local markets. As the hub and sandbox continue to evolve, they are likely to play a crucial role in shaping Trinidad and Tobago’s fintech landscape and driving economic growth.