Economist Christopher Malcolm from the University of the West Indies discusses legal aspects of Jamaica's financial sector regulations at The Gleaner, 7 North Street, on Thursday May 5. - ANDREW SMITH/PHOTOGRAPHY EDITOR
PRESENTERS AT the forum on the Legal Issues which Impact Aspects of Financial Sector Regulation and Economic Development which was held at the University of the West Indies recently, are calling for the reopening of discussions on the direction of Jamaica's regulatory framework.
The forum was part of the Distinguished Shihata Seminar series, and was put on by the University of the West Indies Faculty of Law, The London Forum for International Economic Law and Development (IFLU), and The Mona School of Business. The London-based Partners For Economic Development Limited facilitated the seminar.
The Shihata Seminar is hosted annually by the IFLU, and its activities are dedicated to the life and legacy of the late Dr. Ibrahim Shihata, former General Counsel to the World Bank and leading international scholar in the area of international development law.
This year's Distinguished Shihata presenters were Christopher Malcolm, a lecturer in the Faculty of Law, UWI, and a consultant attorney, along with Dr. George Walker, a reader in international financial law at the Centre for Commercial Law Studies, University of London.
NEW RISKS
Both presenters pointed to the new legal, financial, and operational risks resulting from a world that is fundamentally interconnected, especially in financial markets that are fundamentally unstable. This, they say, magnifies the importance of regulations keeping abreast of the changing environment. Among the issues arising are:
New complexities in products and services markets; new cross-border and cross-sector issues; and, new electronic and digital issues.
The increasing interconnectedness amongst sectors which in turn increases the risk of contagion.
The need for high yields and stability, as well as the need for anonymity amongst market players. Against this background, it is critical that Jamaica address in a public and involved way, the following three key issues, said Walker:
Whether the central bank be given full independence.
Whether to separate monetary policy from financial policy.
Whether to go the route of single or multiple
regulators, once the fundamental question on whether the central bank will be the lender of last resort has been decided upon.
Although the presenters admitted a leaning towards having a single regulator, it was pointed out that there were "no absolute answers", and that the crucial matter at this point was the need for transparent and involved discussion on the key issues. As important was the need for on-going capacity-building in the existing regulatory bodies.
Taken from the Sunday Gleaner, May 29, 2005
