REVIEW OF THE ECONOMY 2013
57
SUSTAINING GROWTH, SECURING PROSPERITY
REGULATORY DEVELOPMENTS
LEGISLATIVE DEVELOPMENTS
For the period under review, the Central Bank of
Trinidad and Tobago (CBTT) continued its work
on several legislative and regulatory initiatives,
with particular emphasis on the Credit Union
Bill and the Insurance Bill. Moreover, the CBTT
continued its work on repealing and replacing
the Financial Institutions (Prudential Criteria)
Regulations, 1994, Policy Proposals for the
Regulation of the Home Mortgage Bank Limited
and the final PolicyProposal Document (PPD) for
the establishment of an Occupational Pension
Plan Bill. There was also continued collaboration
among the CBTT, theMinistry of Finance and the
Economy and the Board of Inland Revenue (BIR)
to ensure Trinidad and Tobago’s compliance
with the requirements of the Foreign Account
Tax Compliance Act (FATCA).
Financial Institutions (Prudential Criteria)
Regulations, 1994
The Central Bank is currently developing
proposals for the repeal and replacement of
the Financial Institutions (Prudential Criteria)
Regulations, 1994 (“Regulations”). The new
Regulations will effectively amend the local
capital adequacy framework governing licensed
financial institutions. A consultative document
will be issued for comment to the industry by
September 2013.
The Draft Insurance Bill and Regulations
The Draft Insurance Bill and Regulations seeks
to provide a new regulatory framework for the
insurance industry, to continue to provide for
the regulation of privately administered pension
fund plans and to repeal the existing Insurance
Act, Chap. 84:01.
The Draft Insurance Bill and Regulations were
initially laid inParliament for debate inNovember
2011, however, with Parliament being prorogued
management emanated mainly from the money
market segment of the mutual fund market
which grew by 0.8 percent over the review
period, moving from $29.6 billion in October
2012 to $29.8 billion at the end of June 2013. The
incomegrowthsegment of themarket registered
a slight decline in funds under management of
0.5 percent over the review period falling from
$10.54 billion in October 2012 to $10.49 billion
by the end of June 2013.
In terms of market share, as at the end of
June 2012 the Unit Trust Corporation (UTC)
maintained its dominance of the domestic
mutual fund industry, both for growth and
income funds and money market funds.
For the money market segment of the market,
the UTC accounted for 39.0 percent of the
market followedby 25.0percentmanagedby the
RBC Royal Bank (RBC) Limited, 19.0 percent by
Republic Bank Limited (RBL), and 17.0 percent
managed by First Citizens Asset Management
(FCB).
In the growth and income fund segment of
the mutual fund market the UTC was also the
market leader, accounting for approximately
80.0 percent of the growth and income segment
of the market at the end of the nine month
period ending June 2013. This is slightly down
from the 81.0 percent held at the end of June
2012. The UTC is followed by FCB accounting for
12.0 percent, followed next by RBC accounting
for 6.0 percent, and RBL, for 2 percent.
Overall the performance of the mutual fund
industry continues to benefit from the positive
momentum in the domestic equity market on
the Trinidad and Tobago Stock Exchange. The
Trinidad and Tobago Securities and Exchange
Commission has indicated that no new mutual
funds where registered with the Commission
over the nine month review period ending June
2013.
THE MONETARY SECTOR
