Barbados PM identifies barriers to regional capital market

By Melissa Bryant
Reporter~SKNVibes.com

BRIDGETOWN, BARBADOS – PRIME MINISTER David Thompson said that the region is facing many hurdles as it seeks to move forward with the harmonisation of the various capital markets.

According to Caribbean 360, Thompson stated that one such hurdle is the harmonisation of legislation and rules in independent jurisdictions.

~~Adz:Right~~“In a perfect world, a harmonised regional capital market structure for Caribbean self-regulation would be based on a common statutory scheme with each country’s support. But each of the countries in the region is at a different stage of development.

“We must therefore forge ahead with what we have and help to bring others to the minimum required for us to move to the next stage,” he said.

Thompson pointed to consistencies in an individual country’s rules and procedures as another barrier to harmonisation of market rules, noting that only some of the region’s countries had eliminated capital gains tax on securities and investments.

He added that another issue is the policing of cross border risk management, especially systemic risk arising from issues relating to trading, clearance and settlement of transactions. He observed that in addition to the challenges, there were common considerations which were prerequisites for the harmonisation of Caribbean capital markets.

According to Thompson, these include the use of modern technology to ensure compatibility of trading platforms and facilities for clearance and settlement, and legislation to support the exchange of information between regulators and other stakeholders.