FSC-Regulated Entities Must Meet Fit and Proper Test

Manager of Communications and International Relations at the Financial Services Commission (FSC), David Geddes, says entities in the insurance, pension and securities industries must meet the FSC’s fit-and-proper requirements in order to legally operate in Jamaica.

This means that responsible persons must possess the competence, character, diligence and judgment necessary for them to perform their duties.

“Fit and proper, in this sense, would mean persons who have not been convicted of any crime involving dishonesty, are competent, have strong moral principles and are expected to live up to the positions of trust they hold,” Mr. Geddes explained.

He noted that the same fit-and-proper criterion is used by the Bank of Jamaica (BOJ), which overseas deposit-taking institutions like banks, building societies and trust companies.

Mr. Geddes was speaking in an interview with JIS News following an FSC town hall meeting at the Cecil Charlton Hall in Mandeville, Manchester, on May 21.

The event was in keeping with the entity’s drive to advance financial literacy in Jamaica and encourage greater use of financial services by citizens.

Topics explored include creating wealth through investing, retirement planning, protecting assets through insurance, and the rights of consumers.

Mr. Geddes said that a key area of focus is the FSC’s role in advancing the Government’s goal of fostering a sound, stable and vibrant financial sector, which inspires confidence, investment and growth.

He noted that while the insurance, securities and pension industries are important channels through which long-term savings and investment can be generated, it is important for persons to know how individuals and companies approach risk-taking, as this determines the kinds of investment decisions they make and the impact those choices can have.

“For individuals to invest in stocks and securities – to lay aside money each payday for a pension… to buy life, health and property insurance, they must be confident that, when the time comes, the benefits paid for will be there,” he outlined.

“An insurance company, for example, that behaves in an unwise and risky manner, puts all shareholders’ investment in jeopardy and may hurt hundreds and thousands of policyholders,” he noted.

The FSC’s Mandeville meeting was held in collaboration with the Jamaica Stock Exchange (JSE), Jamaica Deposit Insurance Corporation (JDIC), and the Insurance Association of Jamaica.

It was the seventh is a series by the FSC since 2018. The meetings will continue in Portland in July and in St. Thomas in September.