JCC endorses financial sector reforms

The Jamaica Chamber of Commerce (JCC) says it endorses the approach taken by Minister of Finance Dr Nigel Clarke to strengthen Jamaica's financial sector amid the massive alleged fraud being probed at investment firm Stocks and Securities Limited (SSL).

Speaking at a press conference on Monday, Clarke that the Government will introduce reforms that will give the Bank of Jamaica (BOJ) responsibility for the prudential supervision and regulation of deposit-taking financial institutions such as commercial banks, building societies, merchant banks, and credit unions.

The central bank will also supervise and regulate non-bank financial institutions comprising securities dealers, insurance companies, and pension funds.

He said that a separate regulator for market conduct and consumer protection for the full spectrum of financial services will be established separately.

According to Clarke, the Financial Services Commission will have a new mandate that involves consumer protection supervision for all financial service providers such as deposit-taking institutions, non-bank financial institutions, cambios, and remittance companies.

Further, the penalty regimes of the Securities Act, the Banking Act, the Insurance Act, and the Pensions Act will be reviewed.

The finance minister also said that the Government will make it a requirement for security dealers to publish their financial statements and material events at standards equivalent to public companies on the Jamaica Stock Exchange.

Other changes proposed by Clarke are the tightening of regulations around connected party transactions for security dealers, as well as introducing a fixed-penalty regime that will result in fines for anti-money laundering/combating the financing of terrorism and other breaches.

He said that if the fines are not paid dealers would go to court.

The finance minister also divulged that the Government will also tighten regulations around insider trading and ensure that the penalty and sanctions regime is severe and dissuasive.

The JCC said that it believes that there must be re-energised focus on accountability and prudential management for the protection of the populace.

Further, it said that it agrees that the Bank of Jamaica can play a major role in ensuring the structural integrity of the financial services sub-sector.

“Fraud is a reality in any commercial system but transparent information about industry-wide standards, and compliance by individual firms, to mitigate and detect fraud in the financial sector must become more accessible to average Jamaicans,” said the chamber in a media release.

“It remains for all of us, including business leaders, to build a culture of intolerance for the 'turning a blind eye' and 'code of silence' ethos that allows fraud and other crimes to go undetected,” it noted.

The JCC asserted that it suits no one to tear down the domestic financial sector, which it said is essential to a functioning economy.

And that's why it supports the criminal investigations into the cases of fraud that have emerged and for perpetrators to be brought to justice.

Further, JCC is urging aggressive efforts to recover the assets of those defrauded.

Follow The Gleaner on Twitter and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.