Domestic Non-Bank
Domestic Non-Bank Entities
Overview
The domestic non-bank sector in St. Vincent and the Grenadines comprises three main types of financial institutions: Credit Unions, Building Societies, and Friendly Societies. Credit Unions, introduced in the 1950s, play a significant role in the financial landscape, serving over two-fifths of the population[1]. The sector includes an Apex body and four Credit Unions, all regulated by the Financial Services Authority (FSA).
Building Societies are member-owned institutions, with the St. Vincent Building and Loan Association being the sole registered entity. Established in 1941, it has served approximately 19,000 members for over 76 years, focusing on savings and mortgage lending.
Friendly Societies, regulated since 2011, are financial organizations that support beneficiaries upon a member’s death and promote thrift. There are sixteen registered Friendly Societies, serving about one-fifth of the population. These institutions operate under the Friendly Societies Act 1843 and the more recent Friendly Societies Guidelines 2015, which aim to modernize their operations in line with international best practices.
Cooperative Societies/CREDIT UNIONS
The business concept of Cooperatives was introduced to the St. Vincent and the Grenadines in the 1950s. The movement is members based and consist of financial cooperatives (Credit Unions) and non-financial cooperatives. Credit Unions are required to be registered with and are regulated by the Financial Services Authority (FSA). These entities must adhere to the provision of the Cooperatives Societies Act of 2012 and regulations, along with legislations governing Anti-Money Laundering, Terrorist Financing and the cross-border exchange of information.
Overtime Credit Unions became important stakeholder in the non-bank financial sector. The sectors’ growing asset base and socio-economic impact, enhanced by its core principles contributes positively to the stability of the domestic financial structure. At present the Sector is comprised of an Apex body and four Credit Unions, collectively serving more than two fifths of the population.
An Application for the Registration of a Credit Union must be made to the Financial Services Authority in the prescribed form.
Investment Guidelines for Credit Unions Sector effective 16 October 2017
Please click here for a complete, current list of Credit Unions
Investment Guidelines for Credit Unions Sector effective 16 October 2017
Please click here for a complete, current list of Credit Unions
Building Societies
Building Societies are non-bank financial institutions owned by its members. In St. Vincent and the Grenadines, the St. Vincent Building and Loan is the only registered building societies. Its core business relates to financial services, especially savings and mortgage lending. The St. Vincent Building and Loan Association was incorporated on July 4, 1941 and has served it approximately nineteen thousand members for approximately 76 yrs. It is one of oldest domestic financial institutions on the island.
Please click here for a complete, current list of Building Societies
Friendly Societies
A Friendly Society is a financial organization principally established to support beneficiaries when a member dies and encourages thrift. Funding for the Friendly Society operation and expenditure are maintained from member’s regular voluntary contributions.
Sixteen Friendly Societies are registered with the Financial Services Authority (FSA). These institutions serve approximately one fifth of the population, after consideration is given to dual membership. These institutions are not unique to any particular geographic area but are spread across the country.
Friendly Societies became formally regulated as other sectors of the non-bank financial system with the passage of the Financial Services Authority Act 2011. The primary legislation governing these Societies is the Friendly Societies Act 1843. In the absence of a more modern primary legislation and in order to streamline and modernize their operations in keeping with international best practice, the Friendly Societies Guidelines 2015 was developed and adopted by the FSA. Implementation commenced in November 2015.
A Friendly Society is an entity established for the purpose of:
(i) providing for money to be paid on the death of a member for funeral expenses in whole or in part, by voluntary subscription of members; and
(ii) encouraging savings and thrift among members; and
(a) “Funeral Expenses” shall be deemed to include all reasonable incidental and ancillary expenses which may be incurred in connection with the death of a member.
An application to register a Friendly Society in the form prescribed by the Authority and signed by a majority of the Board members shall be made to the Authority
Money Services Businesses
Money Services Businesses (MSBs) are non-bank financial institutions that transmit or convert money, allowing for the transfer of funds between persons in different locales. The MSBs Sector in St. Vincent and the Grenadines is regulated by the Financial Services Authority (FSA). MSBs must also comply with the provisions of the MSB Act, Proceeds of Crime Act, Anti-Money Laundering and Terrorist Financing Regulations and Anti-Terrorist Financing and Proliferation Act along with the Anti-Money Laundering and Terrorist Financing Code.
MSBs serve as an important public service, which prescribes why strict compliance requirements are imposed. Failing to observe compliance obligations of the business imposed by the above-mentioned statutes can subject the business, its owners, and its employees to potential criminal penalties as well as fines.
Money Services Businesses serve to close the gaps that traditional banking left open, creating an avenue for more timely disbursement of funds. In S. Vincent and the Grenadines two money Services Businesses operate, namely MoneyGram and Western Union. Agencies for these businesses are at various business locations on island.
The legislation governing the Money Service Business activities is the Money Services Business Act Chapter 260 of the Revised Laws of St. Vincent & the Grenadines, 2009.
No person shall carry on money services business in Saint Vincent and the Grenadines without first obtaining a license under Section 5 of the Money Services Business Act No. 27 of 2005.
Pursuant to Section 2 of the Act, “Money Services Business” means-
(a) The business of providing any or all of the following services-
(i) transmission of money or monetary value in any form;
(ii) cheque cashing;
(iii) currency exchange;
(iv) the issuance, sale or redemption of money orders or traveler’s cheques; and
(v) any other services the Minister may specify by notice published in the Gazette; or
(b) The business of operating as an agent or franchise holder of a business mentioned in paragraph (a).
A person who wishes to carry on money services business within St. Vincent & the Grenadines must apply for a license. An application must-
(a) be made in writing to the Authority i.e. Financial Services Authority;
(b) contain the information and particulars set out in Schedule 1;
(c) be accompanied by a certified statement showing that the applicant has a net worth of one hundred thousand dollars ($100,000) and;
(d) be accompanied by a non-refundable application fee prescribed in Schedule 3.
(e) No license may be granted to an applicant unless the applicant makes a statutory deposit of one hundred thousand dollars ($100,000) in cash, government securities or any other form approved by the Minister
Fees Payable to the FSA:
- Application fee $3,000.00
- Annual fee $10,000.00
A license to carry on money services business is valid from the date of first issue until the 31st December of that year and may be renewed by the Authority on payment of the annual fee on or before the 15th day of January of the following year.
Please click here for a complete, current list of Money Services Businesses
Insurance & Pension Plans
The insurance industry continues to be a significant component of the non-bank financial sector in St. Vincent and the Grenadines comprising insurance companies and intermediaries and pension fund plans. Companies conducting business are either indigenous or domestically incorporated companies or incorporated in CARICOM countries and operating through local agencies or branches.
The Registration requirements for insurance companies are enshrined in the Insurance Act, Chapter 306 of the Laws of St. Vincent & the Grenadines, Revised Edition 2009. To facilitate the timely processing of insurance applications, the following guidance is provided together with a list of documents and information required by the Financial Services Authority (“the Authority”). This is not an exhaustive list and the Authority has the right to seek additional information to enable the proper assessment of an application.
Minimum paid-up Capital:
(a) Minimum paid –up share capital requirements for long term insurance business
Local company – not less than $2M
Foreign company – not less $5M to be fully paid up in cash
Mutual company – uncommitted reserves of at least $5M.
(b) Minimum paid up capital for any class of insurance business other than long term insurance business:
Local company – not less than $1 M
Foreign company – not less than $2.5M to be fully paid –up in cash
Mutual company – uncommitted reserves of at least $2.5M
The Authority may require a share capital above the stated minimum.
Deposit
(a) The following Minimum Deposit must be deposited with the Authority before registration;
Long-term insurance business- $500,000.00.
Motor vehicle insurance business – $500,000.00 or an amount equal to 30% of the gross premium income in respect of motor vehicle insurance business transacted in the State during the financial year last preceding the date of deposit, whichever is the greater.
Insurance business other than long-term insurance or motor vehicle insurance business – $200,000.00 or an amount equal to thirty per cent of its gross premium income with respect to its insurance business other than long-term insurance or motor vehicle insurance business transacted in the State during the financial year last preceding the date of deposit, whichever is the greater.
Please note that, a deposit shall be in the form of cash or prescribed securities or partly in one and partly in the other.
Application & Accompanying Documents
Prior to the making of an application the “conditions for registration” as set out under Section 14 of the Insurance Act, must be satisfied.
- An Application for Registration must be made to the Authority;
- A non-refundable application fee of $1500.00 must accompany the application.
- The names and addresses of one or more persons resident in the State and authorized to accept on behalf of the company service of process in legal proceedings; [Section 9 (1) (b) (ii)];
- A copy of the instrument establishing the company or any other rules of the company incorporation;
- In the case of a foreign company, a Certificate of Registration from the jurisdiction of origin;
- A copy of the Memorandum and Articles of Association or other rules of the Company;
- A copy of the list of shareholders of the company, indicating those who are citizens of Saint Vincent and the Grenadines, and the shareholding of each person;
- Personal Questionnaire Form and recent Police Record for all directors and managers (All officers and shareholders must complete this questionnaire);
- A copy of the latest revenue account and balance sheet;
- A letter from the supervisory authority in the country of incorporation;
- Statement of actuarial basis and certificate of the Actuary;
- A copy of the latest valuation report on the financial position of the company;
- Details of reinsurance arrangements;
- A statement of the rates of commissions;
- A statement of projections of revenue and expenditure, forecast balance sheet and other estimates;
- Specimens of the standard forms of proposal and policy to be used and issued in Saint Vincent;
- In the case of a company applying to carry on long term business, the premium rate book;
- The tariffs to be applied in respect of property (especially fire and allied perils) insurance and motor vehicle insurance business; and
- Any other information requested by the Authority.
Registration and Licence Fees (XCD)
| Description | Fees (XCD) |
|---|---|
| Application Fee for Registration for Insurers | 1,500 |
| Annual Registration Fees | |
| Insurance Broker | 1,000 |
| Insurance Adjuster | 750 |
| Insurance Agent | 750 |
| Sales Representative | 100 |
| Annual Licence Fees | |
| Local Insurer | |
| Long term insurance business | 5,000 |
| General insurance business | 5,000 |
| Foreign Insurer | |
| Long term insurance business | 5,000 |
| General insurance business | 5,000 |
| Pension Plan | |
| Registration of a pension fund plan | 1,000 |
| Registration of an amendment/change of a pension fund plan | 100 |
| Fees for reinstatement of registration | |
| Insurance Agent | 1,500 |
| Insurance Broker | 1,500 |
| Insurance Adjuster | 1,500 |
| Sales Representative | 1,500 |
| Fees for inspection of documents | 50 |
Related Forms
- Application for Registration of a Pension Fund Plan
- Fit Proper Questionnaire- Pension Plan Trustee
- Application for Insurance Adjuster
- Application for Insurance Agents
- Application for Insurance Brokers
- Application for Insurance Sales Representative
- Personal Questionnaire for Insurance Intermediaries
- Guidance Note on the Role of the Principal Representative
- Guidelines for Insurance Intermediaries
- Guidelines on the Establishment and maintenance of Insurance Funds by Insurers
- Fourth Schedule
- Pension Plan Reporting Forms
- Requirements for the Registration of Pension Plans
- Personal Questionnaire for Insurance Company Officials
- Renewal- Ins Agent
- Renewal- Ins Broker
- Renewal- Ins Sales Representatives
- Requirements for Insurance Intermediaries
- Guidelines on Complaints Handling for Insurance Companies
- Guidelines on the Implementation and Maintenance of Insurance Funds by Insurers
Please click the following for a complete, current list of Insurance Companies, Insurance Agents, Insurance Brokers, Association of Underwriters, Insurance Adjusters, International Insurance Companies and Registered Pension Plans.
Fees payable to the FSA (Friendly Societies):
(a) There shall be a non-refundable registration fee of EC$250.00 payable upon registration.
(b) An annual renewal fee of EC$500.00 is payable by December 31st of each calendar year.
(c) A fee of EC$50.00 is payable for any filing by a Friendly Society with the Authority.
There are fifteen (15) registered friendly societies operating in St. Vincent and the Grenadines.
Please click here for a complete, current list of Friendly Societies
Fees Payable to the FSA (Money Services):
- Application fee $3,000.00
- Annual fee $10,000.00
A license to carry on money services business is valid from the date of first issue until the 31st December of that year and may be renewed by the Authority on payment of the annual fee on or before the 15th day of January of the following year.
Fees Payable to the FSA (Pension Plans):
| Description | Fees (XCD) |
|---|---|
| Application Fee for Registration for Insurers | 1,500 |
| Annual Registration Fees | |
| Insurance Broker | 1,000 |
| Insurance Adjuster | 750 |
| Insurance Agent | 750 |
| Sales Representative | 100 |
| Annual Licence Fees | |
| Local Insurer | |
| Long term insurance business | 5,000 |
| General insurance business | 5,000 |
| Foreign Insurer | |
| Long term insurance business | 5,000 |
| General insurance business | 5,000 |
| Pension Plan | |
| Registration of a pension fund plan | 1,000 |
| Registration of an amendment/change of a pension fund plan | 100 |
| Fees for reinstatement of registration | |
| Insurance Agent | 1,500 |
| Insurance Broker | 1,500 |
| Insurance Adjuster | 1,500 |
| Sales Representative | 1,500 |
| Fees for inspection of documents | 50 |