Belize: Technical Assistance Report-Implementation of Prudential Oversight for Securities Firms

Following a request to the Caribbean Regional Technical Assistance Centre (CARTAC), a mission was held from July 7 to 10, 2025, in Belmopan and Belize City to assist the Belize Financial Services Commission (FSC) with prudential regulation and supervision of securities firms. The mission provided training on the prudential framework, potential supervisory approaches, and international standards concerning leveraged derivative contracts offered to retail investors. Supervisory materials were also developed. The mission found the prudential framework conceptually sound but identified opportunities for technical refinements. Key recommendations include developing a risk appetite for the securities sector, establishing conduct requirements for firms offering over-the-counter (OTC) derivative products to retail investors, enhancing compliance assessments, and strengthening staff training on technical matters. Subject to risk appetite and risk assessments, the report explores options for effective framework implementation.