Xanadu Case Study

1
Xanadu Case Study

• Group Two Presenters
• Jose Ochoa
• Joselina Poblador

2
Decision

• Central Bank Unification with Minded-To Clause
• Overall Unification Model based upon the
  Singapore Model
• Minded-To Clause (based upon U.K. experience)
  allows for flexibility
• However, the internal organization of the agency
  (e.g. resource-sharing among agencies) based upon
  Irish Model.

3
Implementation

• Legislative Changes
• MUST pass standing legislation
• Consistency/transparency necessary
• Request BOD nominees to have pension and
  insurance background ? full round of
  representation of services
• Internal Staffing Structure
• Took Hungarian Model authorization and
  enforcement functions are primary
• Prudential and Enforcement functions are
  separate.
• Separate CEO and Chairman roles
• MUST create culture with proper governance

4

• Thank you.

5
Transition Team Timeline

• Complete integration within 12 months
• Integration Committee (to develop budget and
  plan)
• Consensus Decision Making
• Budget Must be ready in 90 days
• 30 Days to recruit foreign consultants (expertise
  with change management, law, etc.)

6
New organizational structure ready in 6 months

• Harmonization of regulations (sector-related,
  common sense approach)
• New Head (Senior Personnel) of new regulator will
  be chosen and designated with in 6 months- from
  within industry and NOT from CB
• New Training must occur fast in order to meet
  timeline (12 month deadline)
• Realignment of salaries
• Hiring of New Staff (non-Senior personnel)
• Maintain political awareness

7
Training Aspects

• People in the Securities arena must be trained,
  as well (since they are institutional investors)
• II. Priority goes to Securities and Pension
  arenas
• III. Learn from similar countries with similar
  situations
• A. Potential country the neighboring (strong)
  country
• B. Hands-On Learning preferred over recruiting
  foreign consultants
• C. Subsequently, implement a consistent training
  program for the remaining staff.
• IV. Receive Precise Technical Assistance
• V. Managerial Training is key

8
Law Drafting

• Allocate funds
• A. TA 1 million legal drafting, training
  (500,000)
• 1. transition costs (change management
  consultancy)
• B. Infrastructure 1 Million
• C. Hardware and Software
• D. Recruitment 200,000
• 1. New Head Staff advertise, select, hire
• E. Contingency 300,000