JIS News

Minister of Finance and Public Service, Audley Shaw, has said that the Government intends to amend Section 68 of the Securities Act to include a provision requiring unregistered investment schemes to comply with the laws of the Act.
The amendments, Mr. Shaw informed, will empower the Financial Services Commission (FSC) to make arrangements pursuant to a cease and desist order, such as directing that there be an orderly closing out of an investment scheme where the circumstances warrant such an action. “We will also be considering whether we should include in the legislative framework, provisions that directly address the subject of investment clubs,” Mr. Shaw said.
The Finance Minister was responding to questions posed by Opposition Spokesperson on Finance, Dr. Omar Davies in the House of Representatives on (Jan. 22) , on the Government’s plan of action in dealing with unregulated financial schemes. Mr. Shaw also informed that applications for registration and or licensing submitted by an unregistered investment scheme will be considered by the FSC in accordance with its established procedures. “Unregistered investment schemes engaged in foreign exchange trading, in addition to obtaining the approval of the FSC, must obtain the requisite clearance of the Bank of Jamaica,” said the Minister.
He also stressed that the Government will continue to remind the public that there will be no bail out for persons who place funds in unregistered investment schemes.
Mr. Shaw said that the FSC will continue its public education programme under the slogan ‘Think and check before you invest’ so that the investing public is sensitized about the principles of sound investing.
In the meantime, the Minister said the approval of Cabinet will be sought for the appointment of two new members to the board of the FSC, one of whom will be the chairman.
“It is the responsibility of the board to appoint an Executive Director. At the moment, the former Deputy Executive Director is acting as Executive Director,” Mr. Shaw informed.