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Senator proposes committee to look at alternative investment schemes
BY BALFORD HENRY Observer writer balfordh@jamaicaobserver.com
Saturday, December 08, 2007
GOVERNMENT Senator Hyacinth Bennett has proposed that a select committee of the Senate look at the impact of alternative investment schemes on the lives of Jamaicans and report to Parliament.
Senator Bennett's resolution is the first coming out of Parliament seeking to address the controversial rivalry between the formal financial and alternative sectors.
Prime Minister Bruce Golding said Thursday that the ruling of the Supreme Court in a case brought by alternative investment scheme operator Cash Plus against regulatory body Financial Services Commission (FSC) will influence government's approach to the issue.
The case in which Cash Plus is contending that it is under no obligation to register with the FSC has, however, been adjourned to January 23.
Senator Bennett's resolution is also likely to be debated in January, as the Senate is not likely to meet before the Christmas break.
Bennett said that recent statements and pronouncements by the Bank of Jamaica (BOJ) and the FSC, as well as reported attempts to close the accounts of the operators of the alternative schemes "could give the impression of collusion and an orchestrated attempt to bring down that sector".
She said that this could lead to "massive economic and social fallout", which would impact adversely on the lives of thousands of Jamaicans.
Senator Bennett said that there was "not a single thread of evidence" to support statements which suggest the possible demise of the alternative investment sector. However, she said these statements could, sooner than later, cause widespread anxiety and panic among Jamaican investors, including church bodies.
She noted that well-known and highly respected members of the Jamaican clergy have expressed, publicly, "deep concern" about the behaviour of a number of players in the formal financial sector. This, she said, has reaffirmed support for, and the right to invest in the alternative investment sector.
The senator, in the meantime, warned of a fallout in the formal financial sector, "if there is failure to deal with the alternative investment sector in an acceptable manner".
She said some of the investment schemes in the informal sector have been in operation in excess of five years, and have contributed to the economic well-being of countless Jamaicans.
"Be it resolved that this Honourable Senate, as a matter of urgency, and in the interest of the nation establishes a select committee to examine the operation of the alternative investment sector, with the view of determining the social and economic impact on the lives of the Jamaica people and to make recommendations, accordingly," Senator Bennett moved.
BY BALFORD HENRY Observer writer balfordh@jamaicaobserver.com
Saturday, December 08, 2007
GOVERNMENT Senator Hyacinth Bennett has proposed that a select committee of the Senate look at the impact of alternative investment schemes on the lives of Jamaicans and report to Parliament.
Senator Bennett's resolution is the first coming out of Parliament seeking to address the controversial rivalry between the formal financial and alternative sectors.
Prime Minister Bruce Golding said Thursday that the ruling of the Supreme Court in a case brought by alternative investment scheme operator Cash Plus against regulatory body Financial Services Commission (FSC) will influence government's approach to the issue.
The case in which Cash Plus is contending that it is under no obligation to register with the FSC has, however, been adjourned to January 23.
Senator Bennett's resolution is also likely to be debated in January, as the Senate is not likely to meet before the Christmas break.
Bennett said that recent statements and pronouncements by the Bank of Jamaica (BOJ) and the FSC, as well as reported attempts to close the accounts of the operators of the alternative schemes "could give the impression of collusion and an orchestrated attempt to bring down that sector".
She said that this could lead to "massive economic and social fallout", which would impact adversely on the lives of thousands of Jamaicans.
Senator Bennett said that there was "not a single thread of evidence" to support statements which suggest the possible demise of the alternative investment sector. However, she said these statements could, sooner than later, cause widespread anxiety and panic among Jamaican investors, including church bodies.
She noted that well-known and highly respected members of the Jamaican clergy have expressed, publicly, "deep concern" about the behaviour of a number of players in the formal financial sector. This, she said, has reaffirmed support for, and the right to invest in the alternative investment sector.
The senator, in the meantime, warned of a fallout in the formal financial sector, "if there is failure to deal with the alternative investment sector in an acceptable manner".
She said some of the investment schemes in the informal sector have been in operation in excess of five years, and have contributed to the economic well-being of countless Jamaicans.
"Be it resolved that this Honourable Senate, as a matter of urgency, and in the interest of the nation establishes a select committee to examine the operation of the alternative investment sector, with the view of determining the social and economic impact on the lives of the Jamaica people and to make recommendations, accordingly," Senator Bennett moved.