significant member of the group, ( but which may include other types of regulated financial activities ). the need for this guidance from basel assumes even greater significance within the context of recommendations being made under fsap reviews, for the prompt and full implementation of consolidated and conglomerate supervision. we therefore, would wish to use this forum to urge the international standard setters and assessors to immediately take on board the need to provide detailed and specific guidance with regards to the conglomerate supervision of such group structures, within the context of the core principles. in fact, it is our hope that, in the interim, this seminar will serve to clarify several of the practical issues with which we are grappling and provide us with clear pointers as to the way forward. in a sense we have had to break new ground on this issue, developing methodology that is underpinned by the fundamental prudential principles, but which seek to address our unique situation. i would wish to share with you this morning some of the specific initiatives in which the bank of jamaica ( boj ) has been involved in recent years towards the ultimate aim of a having a comprehensive framework in place for consolidated supervision. these have included : • establishment of a financial regulatory council ( frc ) in 1999, chaired by the bank of jamaica and with representation from the financial services commission – the supervisory authority with oversight responsibility for the non - deposit taking financial sector in jamaica ( i. e. securities dealers, insurance companies, pension funds, unit trusts and mutual funds ). this council was determined necessary to ensure that the necessary legal channels exist for critical communication, collaboration and information sharing especially as regards dually licensed institutions, but more generally, to ensure a coordinated policy approach to regulation of the entire financial system and so also reduce the potential for regulatory arbitrage. to ensure full coverage of all critical issues impacting the system, the council ’ s membership also includes representation from the jamaica deposit insurance corporation ( jdic ), the ministry of finance and the solicitor general. • the boj also proposed legislative amendments which were passed in 2002 which have enhanced our powers to more effectively carry out consolidated supervision of any corporate group which includes a deposit - taking licensee. these amendments allow for supervisory reach to holding companies, thus enabling such entities to be monitored on a similar basis as its subsidiary banking entity, specifically as it relates to the management of risks and assessment of capital adequacy requirements across the entire group. • these statutory amendments also prohibit the existence of

audrey e anderson : effective conglomerate and consolidated supervision in the caribbean opening remarks by mrs audrey e anderson, senior deputy governor of bank of jamaica, at the caribbean group of banking supervisors / financial stability institute seminar “ conglomerate and consolidated supervision ”, kingston, 11 - 13 april 2007. * * * good morning ladies and gentlemen. it is a pleasure for me to welcome you, both on behalf of the bank of jamaica as well as the caribbean group of banking supervisors to this seminar on “ conglomerate and consolidated supervision ” being facilitated by the financial stability institute of the bis. i would wish to extend a warm jamaican welcome to all our visitors from overseas, and especially to mr. amarendra mohan, senior financial sector specialist with the financial stability institute. mr. mohan is the primary coordinator of this seminar and will also be sharing with us, on some technical and practical aspects of the supervision of banking groups. we are also very pleased to have the privilege of the participation of a team of specialist presenters from several overseas jurisdictions who have accepted the fsi ’ s invitation to address the seminar. we have with us this morning : • mr. denis sicotte, formerly of osfi and now a colleague of mr. mohan at the financial stability institute. • mr. christian otto, head of group at the frankfurt regional office of the deutsche bundesbank responsible for internationally active banks. • mr. steven p merriett, senior supervisory financial analyst for the federal reserve board ’ s division of banking supervision and regulation. • mr. thordur olafsson of cartac who is no stranger to members of the caribbean group of banking supervisors, having participated in our annual conference in 2006 and who also acted as facilitator through the agency of cartac, for specialized bank supervision training programs and other technical assistance in the region. thordur also has the distinction of having been legal counsel and later head of bank supervision for the central bank of iceland, proving as we have done at the bank of jamaica with our own legal counsels, that lawyers can make excellent bank supervisors. • mrs. greta mitchell casselle, senior financial sector expert with the international monetary fund, and formerly a senior advisor at the u. s. office of the comptroller of the currency and the u. s. treasury. greta is also not a stranger to the caribbean, having served on several imf missions to jamaica and elsewhere in the region, took part in jamaica ’ s initial core principles review and later our 2005 fsap, as