Consultation on the Draft Policy Proposal Document for Amendments to the Financial Institutions Act, 2008

CENTRAL BANK OF TRIN I DAD & TOBAGO
Eric Williams Plaza, Independence Square, Port-of-Spain, Trinidad and Tobago Postal Address: P.O. Box 1250 Telephone: (868) 621-CBTT (2288), 235-CBTT (2288); Fax: (868) 612-6396 Email Address: info@central-bank. org. tt Website: www. central-bank. org. tt May 8, 2026 CIRCULAR LETTER TO All Licensees and Financial Holding Companies under the Financial Institutions Act, 2008 Copied to:
The Bankers Association of Trinidad and Tobago Association of Trinidad and Tobago Insurance Companies Institute of Chartered Accountants of Trinidad and Tobago The Deposit Insurance Corporation of Trinidad and Tobago The Trinidad and Tobago Securities and Exchange Commission REF: CB-OIFI-1476-2026 CONSULTATION ON THE DRAFT POLICY PROPOSAL DOCUMENT FOR AMENDMENTS TO THE FINANCIAL INSTITUTIONS ACT, 2008 The Financial Institutions Act, 2008 ("FIA") was enacted approximately eighteen years ago and requires updating to treat adequately with the emergence of new risks posed by technological innovation, and due to changes in international regulatory standards and best practices, including those pertaining to corporate governance, risk management, and the regulation of financial conglomerates. Accordingly, the Central Bank of Trinidad and Tobago ("Central Bank") has developed a Policy Proposal Document ("PPD") which outlines proposals foramendments to the FIA to enhance the regulatory regime for banks, non-bank financial institutions and financial holding companies. The proposals in the PPD seek to treat with identified legislative and regulatory gaps, and areas of emerging vulnerability and risk based on the Bank's ongoing supervision of the sector and includes proposals to:
i. Treat with key recommendations arising from the 2020 International Monetary
Fund and World Bank's joint Financial Stability Assessment Programme of Trinidad and Tobago's financial sector;
ii. Address changes in international banking standards such as the Basel Committee
on Banking Supervision's Core Principles for Effective Banking Supervision and other international best practices;
iii. Strengthen corporate governance and risk management of financial institutions;
iv. Treat with proportionality by requiring more robust standards of governance and
risk management for systemically important financial institutions; .,2

CIRCULAR LETTER TO
All Licensees and Financial Holding Companies under the Financial Institutions Act, 2008 Copied to:
The Bankers Association of Trinidad and Tobago Association of Trinidad and Tobago Insurance Companies Institute of Chartered Accountants ofTrinidadand Tobago The Deposit Insurance Corporation of Trinidad and Tobago The Trinidad and Tobago Securities and Exchange Commission
v. Enhance supervision and regulation of financial conglomerates;
vi. Correct or clarify current legislation provisions; and
vii. Harmonize certain regulatory provisions between the Insurance Act, 2018
("IA"), andtheFIA.
It should be noted that certain proposed amendments to the FIA contained in the PPD will warrant consequential amendments to the IA. This is necessary in order to maintain regulatory consistency and prevent regulatory arbitrage. This PPD is being issued for stakeholder consultation for an eight-week period commencing May 8, 2026. A copy of the PPD may be accessed on the Central Bank's website at htt s://www. central-bank. or . tt/resources-database/all-cate ories/#drafit-and￾consultation-documents-bankin -sector. Written comments on the PPD should be submitted in soft copy using the template provided to FIAConsultation central-bank. or .tt by July 3, 2026. We look forward to your continued support and timely feedback. Y rs sincerely Mic lie Francis-Pantor INSPECTOR OF FINANCIAL INSTITUTIONS