Tweet
RJR Jamaica
Tuesday, 12 August 2008
Former Finance Minister Dr Omar Davies is raising more questions about the operations of alternative investment schemes.
Addressing members of the Kiwanis club Tuesday, Dr Davies says several issues, including how much money was placed in the schemes, the sums paid out from the investment clubs and the number of persons who managed to recover their principal sums, are still to be determined.
Dr Davies said any definitive statement on the operations of the schemes would be premature at this time.
However, he rebuffed criticism that regulatory agencies did not make sufficient efforts to crack down on the alternate investment schemes.
He argued that the Financial Services Commission and the Bank of Jamaica made numerous pronouncements on the schemes which were soundly condemned and went unheeded by "investors" and the public in general.
He noted that the formal banking system may also suffer negative impact due to the large number of persons who borrowed from regulated agencies to invest in the schemes.
"I have been informed that some of the participants in the schemes used real assets as collaterals to obtain loans from the formal financial sector these loans were then place with the operators of the unregulated schemes...its inevitable that some of these loans will go bad," he said.
Dr Davies is also making a case for organised public education initiatives on financial matters for Jamaicans at every level of society.
"Such a public education programme should go beyond providing advice as to the list of financial institution duly registered. Above and beyond that activity there is need for generalize public education on the subject of wealth creation," he said.
Tuesday, 12 August 2008
Former Finance Minister Dr Omar Davies is raising more questions about the operations of alternative investment schemes.
Addressing members of the Kiwanis club Tuesday, Dr Davies says several issues, including how much money was placed in the schemes, the sums paid out from the investment clubs and the number of persons who managed to recover their principal sums, are still to be determined.
Dr Davies said any definitive statement on the operations of the schemes would be premature at this time.
However, he rebuffed criticism that regulatory agencies did not make sufficient efforts to crack down on the alternate investment schemes.
He argued that the Financial Services Commission and the Bank of Jamaica made numerous pronouncements on the schemes which were soundly condemned and went unheeded by "investors" and the public in general.
He noted that the formal banking system may also suffer negative impact due to the large number of persons who borrowed from regulated agencies to invest in the schemes.
"I have been informed that some of the participants in the schemes used real assets as collaterals to obtain loans from the formal financial sector these loans were then place with the operators of the unregulated schemes...its inevitable that some of these loans will go bad," he said.
Dr Davies is also making a case for organised public education initiatives on financial matters for Jamaicans at every level of society.
"Such a public education programme should go beyond providing advice as to the list of financial institution duly registered. Above and beyond that activity there is need for generalize public education on the subject of wealth creation," he said.
Comment