When the new government was appointed in 2004 , certain financial business activities were regulated whilst others, through gaps in legislation, escaped regulatory oversight.
However, the new cabinet has brought all non-bank financial services under the purview of the Ministry of Investment. No financial activity or business may now be carried out unless licensed by the Ministry of Investment through its affiliated authorities. The Ministry of Investment has also eliminated the fragmentation of regulation of financial services by bringing all regulated financial services under its purview. The Ministry of Investment gives the necessary powers to its affiliated authorities to license those financial businesses or activities. The activities include:
- Financial services providers and intermediaries.
- Investment advisory services.
- Brokerage activities and portfolio management.
- Insurance and re-insurance activities.
- Retirement benefits schemes
- Factoring business.
- Leasing business.
- Mortgage finance.
The affiliated authorities ensure, prior to licensing any non-bank financial institution, that the applicant meets the ‘fit and proper criteria' and fulfils certain prudential requirements and conditions. Different conditions are set for the different business activities according to their nature and risks. The affiliated authorities also ensures that applicants have in place the necessary compliance functions, the adequate resources in terms of qualified personnel and equipment, etc….
In this context, the Ministry of Investment revises and implements policies necessary to develop the non-bank financial activities, makes them more competent, and introduces new financial instruments in order to enhance the sector's participation in economic development.