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LETTER OF THE DAY - Proposed framework for financial commission
published: Monday | January 7, 2008
The Editor, Sir:
I wish to add to my Letter of the Day - 'Commission should review all financial institutions' which was published in your issue of December 29, 2007.
Having submitted that the ordinary citizen of this country is not at present receiving a fair deal from our financial institutions and that serious consideration should be given to the new investment clubs so that they may be modified and included in the system, I suggested that a commission be appointed to examine the situation and make recommendations. This is apart from its principal objective of establishing a firm foundation for an efficient, effective and fair financial system. This I believe would obviate the dangers of actions that may turn out to be precipitous and as such could result in people losing millions of dollars.
Such a commission would have to satisfy certain criteria:
It must be technically competent; be fair to all concerned; meet the highest international standards and must command the respect and support of the nation.
To meet these conditions, I have suggested names of persons I think would be critical in achieving our objective. These names of course are merely indicators of the quality of mind I believe is essential without knowing whether the persons named would be interested or willing to serve.
It would, however, be a very big plus if two of our ex-Prime Ministers, Edward Seaga and P.J. Patterson, would agree to head this commission jointly to guide and enhance the status and acceptability of the commission.
It is further recommended that the commission should contain two arms - legal and economic. For these positions, I would suggest Michael Hylton - former Solicitor General and Wilberne Persaud - former head of the Department of Economics at the University of the West Indies, both with detailed Finsac experience.
To ensure international standards, I would suggest that we seek a World Bank nominee, and Mr. Jeffery D. Sachs who was special adviser to the then U.N. Secretary General Kofi Annan and to governments around the world, as well as the author of The End of Poverty, a most relevant, incisive and insightful book, as advisers.
To these, we should add one representative each from the Bank of Jamaica; the Planning Institute of Jamaica, the Jamaica Bankers' Association, the investment clubs, the trade unions and the Private Sector Organisation of Jamaica.
International advisers commission
This would be a commission of 10 apart from the international advisers. It should be given powers to seek and obtain information from all companies or bodies that are relevant to the examination. The mission of the commission should be to undertake a professional, critical and rigorous examination of the financial system as it operates in Jamaica. This would include the ... (its powers and independence), the Financial Services Commission, commercial banks, merchant banks, building societies, stock exchange, companies that receive deposit from the public and offer rates of interest - whether fixed or variable, the new investment clubs, and any other business that is involved in dealing in cash or securities, and to make recommendations.
The commission should be given the appropriate staff and time to undertake its work, bearing in mind the importance and urgency of the task.
The report of this commission should form the basis for new legislation to streamline and reform our financial system so as to render it efficacious, open and in the interest of all concerned; and in so doing place a permanent stamp on our endeavours - Jamaica first!
Of course, this is just the view of one person.
I am, etc.,
R.H. Alexander Kingston 6
published: Monday | January 7, 2008
The Editor, Sir:
I wish to add to my Letter of the Day - 'Commission should review all financial institutions' which was published in your issue of December 29, 2007.
Having submitted that the ordinary citizen of this country is not at present receiving a fair deal from our financial institutions and that serious consideration should be given to the new investment clubs so that they may be modified and included in the system, I suggested that a commission be appointed to examine the situation and make recommendations. This is apart from its principal objective of establishing a firm foundation for an efficient, effective and fair financial system. This I believe would obviate the dangers of actions that may turn out to be precipitous and as such could result in people losing millions of dollars.
Such a commission would have to satisfy certain criteria:
It must be technically competent; be fair to all concerned; meet the highest international standards and must command the respect and support of the nation.
To meet these conditions, I have suggested names of persons I think would be critical in achieving our objective. These names of course are merely indicators of the quality of mind I believe is essential without knowing whether the persons named would be interested or willing to serve.
It would, however, be a very big plus if two of our ex-Prime Ministers, Edward Seaga and P.J. Patterson, would agree to head this commission jointly to guide and enhance the status and acceptability of the commission.
It is further recommended that the commission should contain two arms - legal and economic. For these positions, I would suggest Michael Hylton - former Solicitor General and Wilberne Persaud - former head of the Department of Economics at the University of the West Indies, both with detailed Finsac experience.
To ensure international standards, I would suggest that we seek a World Bank nominee, and Mr. Jeffery D. Sachs who was special adviser to the then U.N. Secretary General Kofi Annan and to governments around the world, as well as the author of The End of Poverty, a most relevant, incisive and insightful book, as advisers.
To these, we should add one representative each from the Bank of Jamaica; the Planning Institute of Jamaica, the Jamaica Bankers' Association, the investment clubs, the trade unions and the Private Sector Organisation of Jamaica.
International advisers commission
This would be a commission of 10 apart from the international advisers. It should be given powers to seek and obtain information from all companies or bodies that are relevant to the examination. The mission of the commission should be to undertake a professional, critical and rigorous examination of the financial system as it operates in Jamaica. This would include the ... (its powers and independence), the Financial Services Commission, commercial banks, merchant banks, building societies, stock exchange, companies that receive deposit from the public and offer rates of interest - whether fixed or variable, the new investment clubs, and any other business that is involved in dealing in cash or securities, and to make recommendations.
The commission should be given the appropriate staff and time to undertake its work, bearing in mind the importance and urgency of the task.
The report of this commission should form the basis for new legislation to streamline and reform our financial system so as to render it efficacious, open and in the interest of all concerned; and in so doing place a permanent stamp on our endeavours - Jamaica first!
Of course, this is just the view of one person.
I am, etc.,
R.H. Alexander Kingston 6