The Jamaica Financial Services Commission has launched a consultation on proposed recovery planning guidelines for all prescribed financial institutions and prescribed holding companies in the insurance and securities sectors. The framework would require entities to maintain credible, board-approved plans for restoring financial viability under severe stress while preserving critical functions and reducing reliance on public support. Plans must be proportionate to each entity’s size, complexity, risk profile and systemic importance. Financial groups would generally submit one consolidated plan covering relevant domestic and foreign operations, with stress scenarios and recovery options for each prescribed institution. Plans would need to include governance and escalation arrangements, recovery indicators and triggers, dependencies, communications and a range of recovery options. They must contain at least three severe but plausible stress scenarios, including capital deterioration and liquidity stress, and undergo annual review and testing. Independent review would be required, while trigger breaches, plan activation and other specified material events would need to be reported to the Commission within three business days. Comments are due by September 16, 2026. Once issued, the guidelines would take effect immediately, with initial board-approved recovery plans due within 12 months and subsequent submissions required annually.

Original source