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<span style="font-weight: bold">News Source: OTGNR - </span>
<span style="font-weight: bold"> Confirmed : Regulations for ponzi schemes too slow in coming ( Observer )...</span>
Well over two years after hundreds of Jamaicans lost millions of their hard-earned dollars in collapsing ponzi and pyramid schemes, Opposition parliamentarians are pressing the Government to expedite the legislative framework in order to prevent a recurrence.Opposition Spokesperson on Finance Dr Omar Davies and colleague parliamentarian Fitz Jackson put the matter to Prime Minister Bruce Golding during this week's sitting of the House of Representatives.Davies, for his part, said it was untenable that the Financial Services Commission -- which registers and approves individuals and companies dealing in securities or operating as investment companies -- can only go after registered entities, but has to resort to "creative tactics" when it comes to those outside of the law."I would urge that a timeline be placed in terms of carrying this matter forward. I would also suggest that we seek to engage as many persons as possible even before you come to the House with draft legislation in discussions as to how you balance between persons' rights to parting with their money or to protect the public interest," Dr Davies said.The timeline for the development and implementation of the legislation was also a sore point for Jackson."There are thousands of Jamaicans who have been severely affected (by the collapse of the schemes) and the absence of regulations gives an air to the public that it is OK because the authorities are doing nothing about it," he said.The FSC, when it appeared before a parliamentary Committee recently, said it had to be constantly monitoring the landscape for the emergence of similar schemes even at smaller scales than the ones seen before.There is nothing in Jamaican law to even define ponzi schemes, but the FSC, in its recent quarterly watchlist, identified 62 unregulated schemes."It is against that background that there is an urgency that we put the regulations in place and have the legislation in place. It is well over two years now since we have witnessed the fallout and as we speak there is no change to legislation or even the regulations to prevent similar schemes from emerging," Jackson said further.Addressing the concerns, Prime Minister Bruce Golding said while he was unable to provide a timeline, he would make an effort to "ensure that they move with as much speed as possible".In the meantime, he told the House that the FSC had developed detailed proposals for legislative and regulatory measures that will form part of the financial sector reform to be implemented under the current medium term economic programme.He said the proposal would include changes to the statutory definition of securities, specific prohibition against ponzi and pyramid schemes and statutory recognition of investment clubs as a class of entities, but with strict rules governing their operations.Golding said the proposals were currently being reviewed by the Bank of Jamaica, the Attorney General's Department and the Office of the Director of Public Prosecutions, after which they will be submitted to Cabinet for the appropriate policy decisions and drafting instructions."Arising from the experience relating to Olint and other unlawful financial organisations, there is a compelling need to strengthen the financial sector legislative and regulatory powers and capability in order to more effectively prevent, detect, investigate and sanction those organisations in the interest of safeguarding the integrity and security of the financial system," the Prime Minister said.He, however, noted that such measures must strike an appropriate balance between the right of the individual to make his own investment choices and the obligation of the State to protect the public.Interestingly, legislation for the regulation of Unregulated Financial Organisations is entrenched in the Memorandum of Economic and Financial Policy with the International Monetary Fund (IMF) and must be implemented in two years. Jamaica, in February of this year inked the agreement marking the resumption of its borrowing relationship with the IMF.
<span style="font-weight: bold"> Confirmed : Regulations for ponzi schemes too slow in coming ( Observer )...</span>
Well over two years after hundreds of Jamaicans lost millions of their hard-earned dollars in collapsing ponzi and pyramid schemes, Opposition parliamentarians are pressing the Government to expedite the legislative framework in order to prevent a recurrence.Opposition Spokesperson on Finance Dr Omar Davies and colleague parliamentarian Fitz Jackson put the matter to Prime Minister Bruce Golding during this week's sitting of the House of Representatives.Davies, for his part, said it was untenable that the Financial Services Commission -- which registers and approves individuals and companies dealing in securities or operating as investment companies -- can only go after registered entities, but has to resort to "creative tactics" when it comes to those outside of the law."I would urge that a timeline be placed in terms of carrying this matter forward. I would also suggest that we seek to engage as many persons as possible even before you come to the House with draft legislation in discussions as to how you balance between persons' rights to parting with their money or to protect the public interest," Dr Davies said.The timeline for the development and implementation of the legislation was also a sore point for Jackson."There are thousands of Jamaicans who have been severely affected (by the collapse of the schemes) and the absence of regulations gives an air to the public that it is OK because the authorities are doing nothing about it," he said.The FSC, when it appeared before a parliamentary Committee recently, said it had to be constantly monitoring the landscape for the emergence of similar schemes even at smaller scales than the ones seen before.There is nothing in Jamaican law to even define ponzi schemes, but the FSC, in its recent quarterly watchlist, identified 62 unregulated schemes."It is against that background that there is an urgency that we put the regulations in place and have the legislation in place. It is well over two years now since we have witnessed the fallout and as we speak there is no change to legislation or even the regulations to prevent similar schemes from emerging," Jackson said further.Addressing the concerns, Prime Minister Bruce Golding said while he was unable to provide a timeline, he would make an effort to "ensure that they move with as much speed as possible".In the meantime, he told the House that the FSC had developed detailed proposals for legislative and regulatory measures that will form part of the financial sector reform to be implemented under the current medium term economic programme.He said the proposal would include changes to the statutory definition of securities, specific prohibition against ponzi and pyramid schemes and statutory recognition of investment clubs as a class of entities, but with strict rules governing their operations.Golding said the proposals were currently being reviewed by the Bank of Jamaica, the Attorney General's Department and the Office of the Director of Public Prosecutions, after which they will be submitted to Cabinet for the appropriate policy decisions and drafting instructions."Arising from the experience relating to Olint and other unlawful financial organisations, there is a compelling need to strengthen the financial sector legislative and regulatory powers and capability in order to more effectively prevent, detect, investigate and sanction those organisations in the interest of safeguarding the integrity and security of the financial system," the Prime Minister said.He, however, noted that such measures must strike an appropriate balance between the right of the individual to make his own investment choices and the obligation of the State to protect the public.Interestingly, legislation for the regulation of Unregulated Financial Organisations is entrenched in the Memorandum of Economic and Financial Policy with the International Monetary Fund (IMF) and must be implemented in two years. Jamaica, in February of this year inked the agreement marking the resumption of its borrowing relationship with the IMF.