OSBI

In 2014, the Government of Saint Lucia initiated the Insolvency Reform Project with the objective of modernizing the national insolvency regime to promote financial rehabilitation, strengthen creditor confidence, and enhance the overall credit environment. The project was spearheaded by the National Competitiveness and Productivity Council (NCPC), acting as the lead coordinating agency for the reform.

As part of this initiative, the World Bank Group was engaged to conduct a comprehensive diagnostic assessment of the then-existing insolvency framework. The review revealed that Saint Lucia’s laws were fragmented, outdated, and ineffective in addressing the rights and obligations of creditors and debtors. The World Bank’s recommendations called for a complete overhaul of the legislative and institutional framework, in line with international best practices.

STRATEGIC APPROACH

In response, the NCPC facilitated extensive stakeholder engagement, including consultations with the Saint Lucia Bankers Association, Bar Association, private sector representatives, and civil society. These consultations informed the drafting of the Insolvency Bill, which introduced several transformative reforms, including:

• The establishment of the Office of the Supervisor of Bankruptcy and Insolvency;   The licensing and regulation of insolvency practitioners;
• Procedures for corporate and individual insolvencies, including proposals and consumer proposals;
• The creation of an institutional framework for rehabilitation, debt restructuring, and orderly liquidation;
• Enhanced stakeholder engagement and public awareness mechanisms.

To support implementation, the Financial Services Regulatory Authority (FSRA) was formally designated as the temporary host agency for the Office of the Supervisor of Bankruptcy and Insolvency (OSBI). A technical advisory services agreement with the World Bank was developed to support capacity building, institutional strengthening, and operational readiness.

THE LEGISLATIVE FRAMEWORK

On September 17, 2024, Parliament enacted the Insolvency Act, No. 17 of 2024, marking a historic milestone in Saint Lucia’s legal and economic reform agenda. The Act provides the legal foundation for a comprehensive and modern insolvency regime that prioritizes financial rehabilitation, protection of creditor and debtor rights, and orderly resolution of insolvency matters.

IMPLEMENTATION

Since the passage of the Act, the Office of the Supervisor of Bankruptcy and Insolvency has made significant progress in advancing implementation. In collaboration with the NCPC and with technical support from the World Bank, the Office has:

• Begun operationalizing its core functions;
• Conducted training for FSRA staff and designated officers;
• Facilitated the review and development of the Insolvency Regulations;
• Hosted stakeholder consultations, including the inaugural hybrid consultation on May 13, 2025, focused on consumer debtor thresholds and protections.

These efforts have ensured that regulatory thresholds and definitions reflect Saint Lucia’s social and economic context and align with the intent of the new law.