February 15, 2013

FSA defends itself against accusations

The Financial Services Authority (FSA) has sought to defend itself against accusations that it may not possess the capacity to carry out its functions.{{more}}

Leader of the Opposition Arnhim Eustace on Monday spoke of the short time since the organization had been in existence and its lack of experience.

Eustace said that the organisation was only 81 days old and that he wanted to see them perform.

“They seem to have a qualified staff, but this is the first exercise that they are involved in,” Eustace said.

On February 1, the FSA assumed management and control of the St Vincent Building and Loan Association and its subsidiaries, and said that “all decisions in relation to the management and control of the association will hereafter emanate from the FSA”.

In a press release issued on Wednesday, the FSA said the organization possesses the relevant qualifications and experience to manage the intervention into the St Vincent Builidng and Loan Association.

“Though the FSA is a new organization, it must be borne in mind that the organization is a merger of three already existing regulatory agencies,” the release said.

It continued stating that the organization of regulatory powers and functions into one umbrella body promotes effectiveness and brings the country on par with the best international standards for regulatory oversight.

The management and staff of the FSA possess relevant qualifications, as well as relevant experience to properly manage this intervention, the release said.

The Eastern Caribbean Central Bank is standing by to provide technical assistance, if it is required, the release indicated and the responsibility of an intervention by the FSA would never have been fully undertaken if the FSA had not been sufficiently resourced or fully capable of managing such an intervention.

One’s perspective on the FSA and its intervention should not depend on which political party one supports; however, ensuring the survival of the BLA should not just be the objective of the FSA, but the entire country.

“The FSA remains committed and focused on its primary objective of restoring the Association’s efficiency, profitability, solvency and stability,” the release said.(see page 5 for the full press release).