Twin Peaks Regulation Model Implementation Expected by 2026

  • Minister of Finance and the Public Service, Dr Nigel Clarke, announced plans for Jamaica's financial sector regulation under the Twin Peaks Model. This model will see the Bank of Jamaica (BOJ) supervising banks and non-bank financial institutions for prudential matters while the Financial Services Commission (FSC) will focus on market conduct and consumer protection.
  • Clarke was speaking during a statement to the House of Representatives on Tuesday (June 11). He said a Twin Peaks Concept Paper, which outlines the legal and operational contours of the model, was prepared and submitted for his approval by the BOJ-FSC Twin Peaks Steering Committee, Chaired by Central Bank Governor, Richard Byles, in 2023
  • “The Concept Paper has been approved and we are now in the final stages of the preparation of a Cabinet Submission for the consideration and approval of Cabinet, following which formal drafting instructions will be issued for the development of the Bill to address proposed changes to the law to give effect to the Twin Peaks Model of Financial Regulation in Jamaica,” the Minister stated.
  • He noted that now, it would be better to focus the limited resources on developing legislation for a comprehensive and robust regulatory framework that the Twin Peaks model will deliver, rather than interim legislation to address consumer protection gaps for financial services.
  • He further noted that given the timelines and urgent need to begin addressing some of the deficiencies identified in the shortest possible time. The Steering Committee proposed that a period of Practice of the Twin Peaks arrangements, within the constraints of the existing statutory provisions, occur before the legal cutover from the current framework to the new model.
  • The Twin Peaks Practice Period is intended to enable capacity building and closer collaboration between the regulators, pending the legislation’s passage, to enable the model’s implementation. In anticipation of the proposed legislative changes, the objective of the practice is to prepare team members for Twin Peaks implementation through opportunities for real-world experience supervising and regulating deposit-taking institutions (DTIs) and non-DTIs, within the constraints of the existing regulatory framework.

(Source: JIS)