Johnson
THE JAMAICA Stock Exchange (JSE) is lobbying for a decrease in the fees that it currently pays to the Financial Services Commission (FSC). So said JSE Chairman, Roy L. Johnson, at the post-annual general meeting press conference held at the JSE last Thursday.
He pointed out that the JSE pays to the FSC more than 25 per cent of the cess revenues earned by the company. In 2002 the company paid $6.1 million to the FSC and over the last three years the JSE has paid $13.5 million, an average of 26.2 per cent of its cess revenues.
Since it lost its non-taxable status in 1996, the organisation has paid out over $58 million in fees to the tax authorities and the FSC.
"We continue to hold discussions with the FSC on the matter of more reasonable fees for the JSE as we feel strongly that 26.2 per cent of our cess revenue in fees is too high," the chairman said.
Turning to the performance of the JSE over its last financial year, Mr. Johnson noted that the company is reporting a return to profit on operations. In 2001, a $2.4 million loss on operations was reported. In 2002, performance improved to a $7.9 million profit on operations, this significantly as a result of a 41 per cent increase in cess revenues from trading activities.
FIXED INCOME
The chairman also announced a November 2003 implementation date for a fixed income project which is designed to bring efficiencies and lower risks to the settlement and custody of fixed income securities.
He also said that following its April retreat, the Council has begun to refine its own corporate governance structure with a view to increasing the JSE's efficiency, transparency and accountability at the Council and management levels. Within three months the JSE will be able to publicly disclose the steps taken to improve governance at the Exchange.
"The JSE faces significant challenges which demand a response and it is in a peculiar position. It is a private company with a public responsibility. The organisation serves the public as the nation's principal securities market and our responsibility is to regulate our broker members and listed companies so that the market serves the interests of all," Mr. Johnson said.
