The Financial Services Commission, New Kingston. - File

The Financial Services Commission (FSC) has issued a new list of 17 investment schemes that it says are not registered to conduct securities business in Jamaica, whether via Internet websites or otherwise.

None of the schemes (see list), the regulator says, has submitted an application for permits to operate.

Up to last week, the only entity that has sought to be licensed was Worldwise Partners, which operates from Ruthven Road in New Kingston.

Under the Securities Act, the FSC is responsible for ensuring that individuals and companies dealing in securities or operating as investment companies are approved to conduct business.

Security

A security, as defined by the FSC, is a contract that can be assigned a value and is oftentimes tradable.

In more general terms, any non-banking transaction that involves an investment of money in an enterprise with an expectation of profits to be earned through the efforts of someone other than the investor, is a transaction involving a security and is required to be licensed by the FSC.

To obtain a licence as a securities dealer or investment adviser, the applicant must satisfy a set of financial and educational requirements as set out by the FSC.

While the financial requirements differ depending on the applicant, the educational requirements are standard.

In the case of a company applying for a securities dealer's licence, a fundamental requirement would be that at least one of its directors must first be the holder of a dealer's or investment adviser's licence.

Second, the company must satisfy certain solvency and liquidity requirements as set out by the commission.

The FSC stipulates that for licensing of dealers under the act, companies must maintain minimum 'free assets' of $5 million in the form of cash and readily convertible securities.

Applying for Investment adviser's licence

If the company is applying for an Investment adviser's licence, it is required to maintain minimum free assets of $1 million.

In addition, officers of the company must be deemed fit and proper.

This means that they should have had no convictions for offences involving dishonesty and are not undischarged bankrupts.

The company must be incorporated or registered in Jamaica and owned, controlled or supervised by Jamaican or Caricom-resident citizens.

With respect to the educational requirements, dealers and investment advisers are required to have at least a bachelor's degree in economics, accounting or business-related subjects.

Otherwise, the FSC will accept professional qualification in law or accounting, or an applicant who has satisfied a course in securities approved by the commission.

A minimum of two years' working experience in the securities industry is also required.

New FSC list of unregistered investment entities:

A3 Union
Capital Blu
Caribbean Real Estate Investment Fund (CAREIF)
F1 Investment Holdings
FXCM

Higgins Warner Music and Entertainment Image Consultants & Services
Keen Exchange
Kingdom Investments Unlimited International (KIUI)
May Daisy
PFG Best
Partners Financials and Investments
Phillip Phinn Ministries International
Ricardo Azan
SGL Holdings
Vacation Makers & Consulting Group
Wealth Builder and Associates

sabrina.gordon@gleanerjm.com