Strengthening Accountability of the Non-Banking Financial Sector in the OECS Description of the IDF-financed components and activities The IDF will finance four components: 1. Development of medium term business plans; 2. Drafting rules, regulations, prudential standards and guidelines supporting the implementation of the updated legal framework; 3. Development of the specialized training program and training of SRUs supervisors; and 4. Grant audit. Component One: Development of Medium-term Business Plans for SRUs ($150,000) SRUs are new to the regulatory landscape and integrate different, previously independent, institutional cultures. The development of business plans is an effective way of introducing these institutions to the NBFIs' sector and to the public at large; planning and communicating their supervisory approach and priorities; setting out the revenues and resources required to carry out their responsibilities and options for ways to fulfill these needs. The IDF grant will facilitate this process by hiring consultants to: (i) conduct a stocktaking exercise aiming at reviewing the status of the establishment of the SRUs and the enactment of the harmonized acts; (ii) provide guidance to the SRUs on the key business aspects that should be reflected in the business plan, based on the results of the stocktaking exercise and international best practices; and (iii) jointly with the SRUs draft the business plans and ensure that the final products are of high quality. Component Two: Drafting Rules,  Regulations, Prudential Standards and Guidelines Supporting the Implementation and Enforcement of the Updated Legal Framework ($150,000) Harmonized acts for insurance and money services have been completed and the credit unions' act is underway. Once fully implemented, the harmonized acts will provide adequate legal basis for the registrants and regulators, requiring the former to follow stringent reporting requirements aligned with international standards, and ensuring that the latter have broad supervision mandate and adequate enforcement powers.  However, given the scarcity of the specialized industry skills and lack of previous experience, successful implementation of these Acts will require development of a comprehensive normative framework, spelling out requirements of the Law.  IDF grant will support the SRUs' working group in drafting of: (i) rules and regulations, specifying financial reporting and disclosure requirements, which have to be followed by the registrants; (ii) manuals and guidelines for off-site and on-site supervision, as well as reporting formats for data collection for off-site examinations; and (iii) external audit guidelines. Component Three: Development of the Specialized Training Program and Training of  SRU Supervisors ($150,000) The objective is of this component is to ensure that the supervisors understand the nature, the risks, and methodologies of the institutions that they regulate, and they confidently apply the new guidelines and standards. Therefore, the IDF grant will support: (i) the development and testing of a hands-on training module; (ii) the identification of the best delivery mechanism to ensure sustainability; and (iii) the training of SRUs supervisors (approximately three per country). Component Four: Grant Audit ($5,000) This component will cover the costs of external audit of the grant. Consistent with the recommendations of the OECS Accounting and Auditing ROSC report, the proposed grant seeks to support the sub-regional efforts aimed to improve the regulatory oversight and provide much needed normative basis and technical assistance to the local NBFIs, thus enhancing stability of the local financial institutions, and contributing to the sustainable growth of the local private sector. In particular, the implementation of this grant will contribute to the achievement of the following objectives:  #	Harmonizing and strengthening the NBFIs regulatory and supervision framework, thus enhancing the macro financial stability, improving business climate and creating opportunities for the mobilization of financial resources;  #	Building capacity of the newly created regulatory agencies (SRUs), thus promoting the overall OECS#s regionalization agenda, facilitating the risk diversification across the region; and improving quality of support provided to the registrants; and  #	Promoting an efficient, fair, and safe Non-Bank Financial Sector for the protection of financial instruments holders.