america total central bank of trinidad and tobago in addition to banking and insurance, we also provide regional leadership in other segments of the financial sector. for example, with increasing incomes, a vibrant wealth management industry has been emerging, centered on deferred annuities by the insurance industry and mutual funds, which has expanded significantly in recent years. funds under investment in the industry have reached tt $ 34. 5 billion, of which about tt $ 8. 5 billion is denominated in foreign currency. yesterday someone put the question, where could we start with the ttifc? let me offer some suggestions. it ’ s my view that even as we launch a search for middle and international bank partners … we can start with what we have. thus, • it would be useful to have an international bank as anchor … what about rbc? if my understanding is correct, rbc has already committed to use trinidad and tobago as its headquarters in the region – just as deutsche bank was important for dubai ’ s ifc, rbc could play the same role for trinidad and tobago. if rbc is not a possibility … is citibank a candidate … notwithstanding current fortunes, they are a strong bank with a long history in trinidad and tobago and in international reach. • the mutual funds industry would provide a convenient regional niche. we can be a centre for mutual funds and collective investment vehicles in the region. utc is leading the way, mobilizing savings up and down the caribbean and even in the us. and there are other mutual funds that are operating regionally and involved in worldwide investments : canada, india. • and what about institutionalizing in the ifc a center for regional bond issuance. even without an ifc, we are doing some of that already. bond issues for regional sovereigns and corporates have amounted to close to us $ 1 billion over the last five years. and this industry has spawned a rudimentary derivative market for strips and participations. the investment funds are coming from savings in trinidad and tobago as well as from institutional investors throughout the region. it is a question of organizing the industry with appropriate legislation. • yesterday, it was mentioned that the stock exchanges of jamaica, barbados and trinidad and tobago had agreed to establish an integrated platform known as the caribbean exchange network. the next step will be a common platform with a single order book i. e. a regional stock exchange. since ifcs are about clusters of financial services, the ttifc would seem

). my understanding is a new draft securities industries act ( sia ) has also been completed. we are also well advanced in the preparation of a new insurance act and a credit union act. we plan to accelerate our work on the preparation of new pensions legislation. in all cases, the new legislation will aim at adapting well - accepted international best practices to our local situation. thus for example, anti - money laundering legislation is critical to any ifc. no large overseas financial institution will come without it. the anti - money laundering act will provide legally enforceable means for the application of best practices governing record keeping, retention of records, and know - your - customer reporting and compliance requirements. the passage into law of these regulations will also ensure that trinidad and tobago is compliant with the relevant international benchmarks established by the financial action task force. the fia would now provide for the consolidated supervision of groups in order to effectively assess and address the risks to regulated entities within a group. it would also place greater emphasis on risk management and improve corporate governance practices. these principles would also be applicable to those companies wishing to operate under the aegis of the international financial centre. the new insurance act will broaden the investment rules and give more flexibility to the companies to make investments including foreign investments. the pensions act is also likely to provide greater scope for foreign investment and a more open approach to equity investments. the establishment of an ifc will require the strengthening and upgrading of our financial supervision capability. yesterday, there was the question on whether the ifc and the domestic financial services industry should be on the same regulatory footing. the bank ’ s preliminary view is that all financial institutions should be subject to consistent regulatory oversight. if companies operating within the international financial centre are also engaged in domestic lending and investment and are therefore competing with local institutions, they should be subject to the same rules. in our view, the existence of an ifc does not alter the basic objectives of financial sector supervision which are, preserving financial stability, protecting depositors ’ and policyholders ’ interest, and the promotion of a competitive and efficient financial system to support economic growth. given the fact that companies in the ifc will receive tax advantages, we would need to consider what steps could be taken in order to minimize regulatory arbitrage. as the ifc expands, the need for a single regulator, as distinct from the central bank will have to be faced. the government has indicated that over the medium term it is prepared to consider the establishment of