A coming tsunami of new financial regulation will reshape the Caribbean’s broker-dealer industry, driving widespread consolidation and strengthening the hand of large indigenous institutions. That is the forecast from Angus Young, CEO of NCB Capital Markets Limited, who asserts that the cost and complexity of compliance will raise the competitive bar to unprecedented levels, forcing smaller players to merge and potentially nudging some foreign entities out of the region.

Speaking at the JSE Investments & Capital Markets Conference 2026’s ‘CEOs Meet the Press: Corporate Outlook 2026 & Beyond’ session on Thursday, January 22, at the Jamaica Pegasus hotel, Young, who leads one of the Caribbean’s largest and most active investment banks, painted a detailed picture of an industry at an inflection point. His analysis moved beyond regulatory commentary to outline the strategic future of the sector, its implications for Jamaica’s financial sovereignty, and a clear roadmap for the next generation of finance professionals.

Young identified a wave of new global rules as the primary catalyst. The most significant is Basel III — a set of international standards created after the 2008 financial crisis to make banks safer. In simple terms, it forces financial institutions to hold much more spare cash (capital) and high-quality liquid assets to withstand unexpected shocks, rather than lending or investing every dollar they have.

Alongside this, the impending “Twin Peaks” model — which splits the job of regulating market conduct from overseeing financial soundness — and new “special resolution” plans for failing banks add further layers of cost and complexity. Together, he said, these rules mandate a heavier financial burden for all players.

“The cost of this regulation is going to be borne by the broker-dealer,” Young told the audience. He explained that building the internal talent, sophisticated risk management teams, and “more scientifically crafted” balance sheets required to comply creates a significant financial burden. “Essentially what it does, it creates a safer environment, and that’s great, but it creates a higher return hurdle for the broker-dealer.”

This new financial discipline, he noted, will change how these firms do business day-to-day. In practical terms, it means they will have to be much more selective about the deals they pursue and the clients they take on. Every loan, investment, or service will need to justify its cost by generating a clear profit that adequately compensates for the risk involved. It can no longer be about volume alone.

Young argued these mounting pressures make industry consolidation a near-term certainty. Put simply, the rising costs of compliance and the need for larger financial reserves will be too heavy a burden for many smaller firms to bear alone. “I think it’s going to force consolidation,” he said. “So I think going forward, over the next five years, you’re going to see more consolidation in the broker-dealer community.”

He expanded on this point by suggesting that as profitability becomes more challenging under the new rules, the calculus for some foreign-owned institutions may change. “As you raise the bar on the minimum return on capital… for the foreign institutions, probably it starts to look a little less attractive.”

This potential retreat, he contends, will create a strategic vacuum to be filled by dominant local players. Young emphasised the growing importance of “large, strong, indigenous financial institutions to Jamaica and to our region,” framing their ascendancy as both a business trend and a pillar of regional economic resilience.

For young professionals charting a career in this transforming landscape, Young’s advice was direct and strategically grounded. In a future where scale, activity, and cultural fit will be paramount, he offered a three-point checklist for choosing an employer:

1. Seek Deal Flow: “Look for the firms that are doing the most deals,” he advised. He argued that exposure to a wide variety of transactions—mergers, acquisitions, debt and equity issuances—is the fastest way to build invaluable intellectual capital and specialist knowledge.

2. Follow the Capital: “Look to the firm with the greatest funds under management.” Young highlighted a simple truth: “Jump high, jump low, if it’s not funded, it’s not going to happen.” Execution capability is inextricably linked to assets under management.

3. Prioritise Culture & Mentorship: Beyond the numbers, he stressed the human element. Professionals must “look for a firm that has a culture that aligns with your values” and seek out executives they believe would be genuine mentors.

Throughout his address, Young’s narrative extended beyond mere industry adaptation. By consistently linking the success of indigenous institutions to the broader economic strength of Jamaica and the Caribbean, he positioned firms like NCB Capital Markets not just as survivors of consolidation, but as the architects of a more self-sufficient and sophisticated regional financial ecosystem.

“It’s going to look a lot different than what it looks like today,” Young said of the broker-dealer future, implying that this difference will be defined by local strength, deeper capital markets, and enhanced governance.