Foreign Asset Limit for Pension Funds, Insurance Companies Moves to 15 Per Cent

The foreign asset investment limit for pension funds and insurance companies will increase to 15 per cent in the upcoming 2026/27 fiscal year.

Minister of Finance and the Public Service, Hon. Fayval Williams, made the disclosure while opening the 2026/27 Budget Debate in the House of Representatives today (March 10).

“Early in the new fiscal year, working with the Financial Services Commission (FSC) and the Bank of Jamaica (BOJ), we should be in a position to increase the foreign asset limit for pension funds and insurance companies from 10 per cent to 15 per cent of total assets,” she said.

She highlighted that the additional five per cent will be restricted to foreign currency denominated securities issued by locally domiciled issuers.

“This targeted change, to a large extent, preserves overall caps on external exposure while enabling pension funds to enhance their currency management and invest in high-quality local dollar [instruments],” Mrs. Williams advised.

Together with the regulators, she said the Government will simplify the regulations for the assets they are allowed to hold.

“The BOJ has advised that by June it will make adjustments to the limit and simplify the FX (foreign exchange) regulations,” Mrs. Williams said.