Peter Morgan, Contributor

Morgan

In July of this year, in what some estimated to be the coup de grace of the retail foreign exchange industry, otherwise referred to as the unregulated investment schemes, I submitted an article (Sunday Gleaner, July 27) in which I stated:

It is time for the banking sector together with other business houses to examine the need for reform in the conduct and role of banking in our developing economy, and given our acute social needs. We could contribute to a new paradigm in the banking industry, which the international and global markets are demanding.

This recommendation was made against the backdrop of the broadside attack against the unregulated schemes apparently to frustrate or to obliterate them from the local market. The Financial Services Commission (FSC) to date has done nothing to shape policy and frame appropriate laws to guide the Government in establishing a new emerging industry, which might fit into the Jamaican capital context.

On January 6 this year, Sunday Gleaner reporter Daraine Luton reported that the prime minister had mandated Audley Shaw, who is in charge of the finance and public service ministry, and Don Wehby, minister without portfolio in that ministry, along with Justice Minister and Attorney General Dorothy Lightbourne, to meet with representatives of the FSC to develop guidelines to address concerns about investment schemes.

examine the deficiencies

The group was asked to examine deficiencies in the existing statutory (regulatory) process that would need to be adjusted. The prime minister said the priority was to protect the integrity of the countrys financial system and establish the requisite legislative framework for dealing with other investment schemes that might develop in the future.

The article also quoted Shirley-Ann Eaton, former secretary of the Bankers Association, as stating, at that time, that The Jamaican authorities must now decide whether there is a need to introduce new regulatory provisions to accommodate the establishment and operations of genuine investment and members clubs.

What has been the outcome of these deliberations? Has the Cabinet yet ventured into the future of our financial and investment services to see whether the retail foreign exchange investment industry has a vital part to play in the financial empowerment of our people and the development of our economy?

feeling skeptical

In the wake of the collapse of the financial and economic institutions in the US and the global market, one wonders how long it will be before our well-regulated institutions also fold. In spite of the public relations statements being made by spokespersons from the FSC, the banks and the Government, the business sector and the public at large are nervously sceptical about the integrity of those reassuring announcements.

Those of us who have watched the dynamics of the financial lobbyists over the past 18 months have long questioned the judgment of the leadership of these institutions, and at times have even wondered about their motives. Today, I raise again the question of the integrity of the policies, and the decisions and opinions of our financial leaders, in the public and private sectors. Over these months, I committed myself, as have a number of faithful Christian entities and individuals, to pray specifically for our government and business leaders, our traders and investment brokers, and particularly for our people for God’s wisdom, courage and faith to minimise the effects of any financial fallout. As I stated then, “This is my investment in the future.”

While prayers can bring answers, they also precipitate judgment, where men fail to respond to the promptings that come for action towards change. In this sense, I believe the future is now upon us.

Adversity carries with it the seeds of reformation and inventiveness. Only those who are prepared to dismantle the past and take new initiatives without prejudice and greed can embrace the future, create institutions and provide services with benefits to satisfy the needs of all.

Christian community

In the meantime, I wish to commend the Christian community for the manner in which they have responded to the freeze and fallout in the foreign exchange investment industry. Over the past three months I have had opportunity to meet with and to address several church groups and individuals, both locally and overseas, on the issue. We have examined biblical principles governing wealth and financial management, saving and investing, faith and risk management, the ethic of work and corporate entrepreneurship.

We have been aware and concerned about the hardships being faced by several individuals, groups and Christian ministries. In the wake of the fallout we have been forced to examine the weaknesses and strengths of the investment clubs. We also have to contend with the cloud which still hangs over the investment industry by the subtle threat of contending interests, and the pending litigation still facing some of the key figures in the industry.

The FSC building in New Kingston. - File

trusting God

I have been impressed with the remarkable restraint and patience exercised by many within the Christian community. This is based on a strong faith and confidence that God is in the midst of the crisis. Indeed, while they remain hopeful that a financial breakthrough will come, they are convinced that there is something more precious to gain than money. It is the joy and satisfaction of trusting God, and the prospect of triumphing in spite of the odds.

The challenges we face are opportunities to come together as a people, to place all the options for economic and financial reformation on the table, in a manner that will not benefit special-interest groups to the disadvantage of the wider middle and lower income population.

I particularly appeal to the Government, through the minister of finance, to rise in the defence of the people, to establish a financial mechanism which will allow for a properly regulated retail foreign exchange investment industry.

The future is ours to determine. If we don’t, it will be determined for us, and perhaps, not to our benefit. Actually, we do not have a choice. The future is already upon us.

Bishop C.B. Peter Morgan is a local minister of religion. Feedback may be sent to bishop.petermorgan@yahoo.com or columns@gleanerjm.com.