PRESS RELEASE

Dialogue and collaboration with industry at the heart of FSC’s initiatives

The Commission promotes a consultative and collaborative approach with the financial services industry as a whole, says Chief Executive.

The Financial Services Commission’s Chief Executive, Mr Milan J.N. Meetarbhan restated the Commission’s business friendly approach to regulation and shared his views on the regulator’s role and function; dialogue and collaboration with industry stakeholders is at the heart of the Commission’s initiatives. Mr Meetarbhan was the guest speaker of the Insurers’ Association of Mauritius (IAM) and addressed members of the association on the occasion of the IAM’s Annual General Meeting in Port Louis on 28 March 2007.

“As a regulator for the non-banking financial services sector, the Commission is duty-bound to take appropriate regulatory action where it deems it necessary to intervene, and as provided by the law, in order to maintain the integrity of the financial system, uphold the good repute of the jurisdiction and where necessary protect the interests of consumers,” he recalled.

Dialogue precedes regulatory action

Mr Meetarbhan emphasized the Commission’s purposive approach in taking regulatory action; dialogue and collaboration come first: “We give serious consideration to the impact of every single regulatory action we propose to take. We will not unnecessarily and unjustifiably rush into taking regulatory action. We have and will continue to look for remedial action through dialogue with our licensees.”

“However, when we reach the point where the dialogue is not leading anywhere and moral suasion is not enough then, if we have no choice but to invoke our statutory powers to protect the interests of the jurisdiction and the interests of consumers, we will have to do so. Indeed, failing to act would be a serious dereliction of duty,” he highlighted.

“I am confident that the industry, consumers and the economy in general will benefit from timely and effective action by the regulator. I am happy to put on record the support expressed by many of your members for such timely action by the regulator,” he added.

Mr Meetarbhan said he believes that both the industry and the regulator should have a shared vision and commitment, aimed at expanding and modernising the insurance sector, enhancing the scope for future growth and creating the synergy required for a dynamic insurance sector.

FSC and IAM have had regular and constructive meetings over the past months to discuss several issues relating to the industry, in particular regulations to be made under the forthcoming Insurance Act. “The opportunities we have had to discuss major challenges facing the insurance industry are part of an enhanced effort by the Commission to promote a consultative and collaborative approach with the financial services industry as a whole,” he concluded.