Gov't to tighten control over unregistered investment clubs

[Lazie]

Wednesday, January 09, 2008



THE government indicated yesterday that it will pursue legislative initiatives to increase control over the activities of unregistered investment clubs.

Making the announcement, minister without portfolio in the Ministry of Finance and the Public Service, Senator Don Wehby, told a post-Cabinet briefing at Jamaica House, that while investors bear the risk of their own investment decision, the government has to ensure that the investment schemes are conducted within a regulatory framework ensuring appropriate and timely disclosures.

He said that the government had taken into consideration the fact that investment clubs operating in other jurisdictions, were limited in membership and members were allowed to participate in investment decisions.

"Genuine investment schemes committed to proper standards of operational conduct should have no reluctance in submitting themselves to this regulatory framework," Senator Wehby said.

He said that the regulatory body, the Financial Services Commission, will consider application from any entity for registration and or licensing under the existing legal provisions.

These applications will be processed in accordance with established criteria, which include minimum capital adequacy, fit and proper assessment of principals and operating officers and the filing of appropriate returns to enable regulatory oversight,
he explained.

"The government will not allow them to elude oversight and to expose to irresponsible risk, the hard-earned savings of innocent members of the public," he added.

[Lazie]

Mixed responses

Cabinet's response to the treatment o investment schemes has elicited mixed responses from financial analysts, who argue that proposed legislation to accommodate investment clubs should be drafted with urgency.

Financial analyst Errol Gregory said yesterday that the authorities had opted for a hard-line approach in dealing with the new schemes.

Mr. Gregory told The Gleaner the Government's statement suggested that it was in support of the action taken so far by the regulatory authority.

"The only part of the statement which implied that there was any rethinking on the issue was Cabinet's instructions for urgent (legislative) steps to be taken," he said.

Mr. Gregory said this move by the Government was positive, noting that it would be difficult for the financial sector to have serious regulations which did not address the likelihood of persons coming together to form investment clubs.

Hard-line approach

Indicating that the establishment of investment clubs in Jamaica was an attempt at new entrepreneurial initiatives, Mr. Gregory said he believed some attempt would have been made to show flexibility on the part of the regulatory authority.

"What was seen so far suggests that the authority was opting for a hard-line approach. The laws exist, respect them," he said.

Financial analyst Claudette Crooks of Money Masters Limited, said she supports the Government's insistence that investment schemes must operate within the regulatory framework.

However, she said, Cabinet's position that it would consider applications from any entity for registration and licensing under the existing legal provisions required greater clarity.

[Lazie]

Cash Plus clients feel the pinch

published: Wednesday | January 9, 2008

Shelly-Ann Thompson, Staff Reporter

From those who did it in order to pay bills, to others who invested to increase wealth, some Cash Plus Limited savers are feeling the impact of not receiving their monthly returns.

For couple Keisha and David Reid, they say life has returned to a 'hand-to-mouth' situation.

The couple was receiving $40,000 monthly, after investing $400,000 in the high-yield investment scheme.

Returns used for household expenses

The monthly returns, they say, were used to finance their house. Their daughter's preparatory school fees were also pulled from the returns. For this January term, the school fee had to be paid directly from their pockets.

"From Cash Plus no pay out, we a live 'hand to mouth'. It terrible and wicked," said Mr. Reid.

The couple had raised the $400,000 by using their family car as collateral for a loan from a financial institution.

Now the Reids are paying a $17,000 loan.

"I am not disappointed, just waiting to see how good this Government is," said Mr. Reid.

It is a similar situation for young professional Monique Bryan. Ms. Bryan took out a bank loan of $300,000. She invested $100,000 and used the balance to purchase a motor car.

She said her returns from Cash Plus were used to finance the loan, while her car payments came from her salary.

Now Ms. Bryan is stuck with both payments and no monthly Cash Plus returns.

shelly-ann.thompson@gleanerjm.com

[Lazie]

A woman is complaining that for years she was invited to join Cash Plus, she declined. After seeing that Cash Plus existed for 5 years, she took a J$500,000 plunge in September, now is complaining that she wasn't informed.

[Lazie]

Government’s threat sparks clamor to register investment

Government’s threat sparks clamor to register investment schemes Wednesday, 09 January 2008 Managers of unregulated investment schemes are reportedly rushing to regularise their operations ahead of the Government announcement that it will be imposing tough regulations on the sector.

With the Government's stern warning that unlicensed entities will be issued with cease and desist orders, operators have started to make contact with the Financial Services Commission, (FSC).

Minister Without Portfolio in the Finance Ministry, Don Wehby, said within hours of his announcement on Tuesday, there was a strong response from operators.

Mr. Wehby had said legislation would be drafted to govern the operations of investments clubs.

Citing similar regulations in the United States, he said such clubs had a maximum 100 members, each participating fully in investment decisions.

[Assasin]

Now Lazie you see how work?

Imagine if the proper legislation was in place or if they attacked Cash Plus earlier?

[MdmeX]

A woman is complaining that for years she was invited to join Cash Plus, she declined. After seeing that Cash Plus existed for 5 years, she took a J$500,000 plunge in September, now is complaining that she wasn't informed.

So who she want to blame now Must be Mosiah inviegle har fi join

[Lazie]

Now Lazie you see how work?

Imagine if the proper legislation was in place or if they attacked Cash Plus earlier?

When yuh say "they" who yuh talking bout?

[Lazie]

So who she want to blame now Must be Mosiah inviegle har fi join

Well she knocking the FSC and the former gov't. Ronnie Thwaites took exception to that.

[Gamma]

as he would...

[Jawge]

All mi know say is dat digicel
must be doing some serious bizniz ah town now. Ben, di hottie dem ah change out di chip inna dem phone LOL . Try call Yendi or none ah di sky box massive see wha happen. Unnuh see multi millionaire ah run roun ah yaad an tink ah so it go. Man dem haffi werk hard an hustle various tings. Quote:" unnuh tink ah so parson get him gown?"

Waan sidung put in five hundred and and draw 20 thousand innna year time. It nuh werk suh bredrin.

[Karl]

Well she knocking the FSC and the former gov't. Ronnie Thwaites took exception to that.

Interesting!
Did the previous administration issue statements that 'people should weigh carefully the risks' (or something like that?)...and be careful about where they put their money?

...and, I do not suppose the lady should in any way 'fault' hwerself?

Reminds me of persons who willingly take out mortgages on homes...accepting the associated risks...but, as the US economy slows and or their expectations of increased incomes do not materialize it suddenly becomes - "I am a mere ass...I had no clue I could possible lose my home"..."poor stupid, mentally retarded me ...

What?

[Lazie]

Interesting!
Did the previous administration issue statements that 'people should weigh carefully the risks' (or something like that?)...and be careful about where they put their money?

...and, I do not suppose the lady should in any way 'fault' hwerself?

Reminds me of persons who willingly take out mortgages on homes...accepting the associated risks...but, as the US economy slows and or their expectations of increased incomes do not materialize it suddenly becomes - "I am a mere ass...I had no clue I could possible lose my home"..."poor stupid, mentally retarded me ...

What?

The gov't made no statement on the issue ... only the FSC was trying to get these schemes in line. Stop try spin this. The one Ronnie Thwaites and chief PNP ass kisser Garneth Roper mekking up noise that the gov't should act .. where were their cries prior to Sept 3rd? Focking hypocrites.

Even this morning on Real Business Ronnie Thwaites trying to pour cold water on the move by the gov't ... even him side kick left him hanging this morning.

[Assasin]

issuing statement is not enough you need concrete policies.

[Lazie]

issuing statement is not enough you need concrete policies.

You obviously not paying attention Sass ... the Finance Ministry met with the FSC and the AG over the weekend.