Overview
The Financial Services Commission (the “Commission”) plays a key role in maintaining the integrity of Barbados’ financial services sector. Effectively and proportionately exercising its enforcement powers is one of the ways that the Commission fulfils its regulatory objectives by enforcing the requirements of applicable legislative and regulatory frameworks in a manner that is transparent, consistent, and aligned with established laws, policies, and procedures.
The Commission is committed to upholding fairness throughout its enforcement actions. Thereby ensuring that individuals and entities subject to its powers are treated equitably, while promoting compliance.
..
FSC Appointed Manager
In accordance with section 8(1)(d) of the Financial Services Commission Act 2010-21, the Commission has resolved to seize management and control of Equity Insurance Company Ltd. ("Equity") and appoint Mr. Craig Waterman of PriceWaterhouseCoopers SRL (“PwC”) as Manager with effect from Monday, August 18, 2025, until further notice.
Mr. Waterman is a highly experienced restructuring professional with more than 23 years’ experience across the Caribbean. He has led a wide range of insolvency and restructuring engagements, including financial viability assessments, court-appointed liquidations and receiverships on behalf of secured lenders. Mr. Waterman is a licensed Trustee under the Bankruptcy and Insolvency Acts of both Barbados and St. Vincent and currently holds several formal trustee appointments.
He has overseen several complex assignments involving cross-border legal coordination, asset recovery and international sale processes. Notable engagements include the liquidation of Bancafe, an offshore bank with ties to Guatemala, the receivership of large commercial and hospitality assets in Barbados and Saint Lucia, and the management of distressed businesses in Belize and Aruba. Mr. Waterman holds an MBA in Finance and Accounting from Vanderbilt University and is NASD Series 7 and 63 certified. His hands-on approach, combined with technical expertise and regional insight, continues to support clients through challenging financial situations across multiple jurisdictions.
Procedural Steps for Enforcement Action
Outlined below is the full procedure for the current enforcement action being undertaken with respect to Equity. There is no guarantee that each and every step outlined will be required in this particular case, but for completeness, we have noted all possible steps that may become necessary as this matter progresses. Subject to the Manager’s reports, the Commission will make its final determination as to whether to revoke Equity’s licence within ninety (90) days of said appointment.
Pursuant to section 25 of the FSCA, between February and May 2025, the Commission consulted with the Minister regarding the enforcement action being undertaken.
The Commission formally issued the following notices to Equity regarding the intended enforcement action on July 14, 2025:
- LSED/DIR/1/2025 Directive: Prohibiting the Movement of Assets and Destruction or Tampering with Records.
- LSED 2025/01 Notice: Intention to Seize Management and Control of Equity Insurance Company Ltd. and Appointment of Manager pursuant to section 8(1)(d) of the Financial Services Commission Act, 2010-21.
- LSED 2025/02 Notice: Intention to Revoke Licence pursuant to section 25 of the Financial Services Commission Act, 2010-21.
Equity was afforded at least 21 days to make representation in writing demonstrating why the Commission should not take the intended enforcement action(s). Equity submitted a Letter of Objection dated August 4, 2025.
Having carefully considered the written representation made, the Commission issued a formal decision on August 13, 2025, confirming its intention to proceed to seize management and control of Equity and appoint Craig Waterman of PriceWaterhouseCoopers SRL (“PwC”) as Manager with effect from Monday, August 18, 2025, until further notice.
Further, subject to the Manager’s reports, the Commission will make its final determination as to whether to revoke Equity’s licence within ninety (90) days of said appointment.
According to section 25(4) of the FSCA, a financial institution that is aggrieved by the revocation of its licence, may within 30 days of the receipt of the notification under subsection (3), appeal to the Tribunal.
If an appeal is initiated, pursuant to section 25(5) of the FSCA, Equity’s license may be suspended in the interim until such time as the Tribunal may issue a decision on the appeal.
Where the Commission revokes the licence of a financial institution under section 25 of the FSCA and there is no appeal or the appeal is disallowed, notice of the revocation shall be published in the Official Gazette and in a daily newspaper published and circulating in Barbados.
According to section 29 of the FSCA, any party to an appeal determined by the Tribunal who is dissatisfied with the determination on a point of law may, within 14 days after the decision is given, appeal to the Court of Appeal in accordance with rules of court.
The Court of Appeal may make any order or give any decision which might have been made or given by the Tribunal, and may, if it thinks fit, remit the case to the Tribunal with directions as to its determination by the Tribunal.
FAQs
This enforcement action follows supervisory intervention including recent examinations which identified areas where Equity’s internal systems, controls, and governance require significant strengthening. While the Commission has issued previous directives aimed at remediation, further measures are now necessary to protect policyholders and ensure continued confidence of the non-bank financial sector.
The Commission’s findings indicate that regulatory intervention is necessary in order to protect the interests of policyholders and other stakeholders. As a responsible and prudent regulatory authority, the Commission has therefore resolved that pursuant to sections 8 and 25 of the FSCA, management and control of Equity should be seized pending any further regulatory action. The Commission will continue to provide updates as the process advances.
The Commission is of the opinion that Equity has not maintained a high standard of financial probity or followed sound business practices. In particular, Equity has failed to comply with several provisions of the Insurance Act, Cap. 310, the Financial Services Commission Act, 2010-21 (the “FSCA”), the Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23 and Commission-issued Guidelines.
Yes, policyholders should continue to submit their claims to the company, and they will be reviewed and processed.
Yes, Equity is not currently authorised to write new business at this time.
No, the renewal of policies will remain at the mutual discretion of Equity and the relevant policyholder.
Yes, you may still engage with the company through its usual communication channels.
About the Financial Services Commission
The Financial Services Commission (the “Commission”) was established in April 2011 as regulator of the island’s non-bank financial sector under the Financial Services Commission Act 2010-21 (“FSCA”). The Commission has wide-ranging powers to enforce the provisions of the FSCA and Specified Enactments, including acting against regulated entities for breaches of applicable laws, guidelines, rules, and regulations. The Commission also derives some of its enforcement authority from the Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23 and the AML/CFT & PF Guideline 2021, as amended.
The Commission regulates and supervises a myriad of entities conducting regulated activities in the Credit Union, Insurance, Occupational Pensions and Securities sectors. It administers the relevant legislation and develops and enforces standards that apply to financial institutions, natural persons and financial products within these sectors. Considering that the non-bank financial services sector comprises entities of varying size, complexity and scope of operations, conducting business in and from within Barbados, the Commission seeks to supervise in a way that is risk-sensitive, right-sized and promotes safety and soundness by market participants.
For more information contact us at:
1(246)421-2142 (PBX)
