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FSC sends another UFO warning
Published: Wednesday | June 2, 2010 0 Comments and 0 Reactions
Four years into its war against unregulated financial organisations (UFOs), the Government's watchdog for the securities investment sector, the Financial Services
Commission (FSC) has admitted that it is uncertain whether some unregulated entities are still pursuing the collection of money for investment.
In late May, the FSC repeatedly listed in local newspapers, some 62 entities which it said are not licensed or registered to solicit or take funds from the public to invest with a promise to pay returns.
"Our campaign has been a sustained one," Rohan Barnett, the executive director of the FSC told Wednesday Business.
"Since 2006, we have been consistent and unyielding in getting the message across and warning the investing public about these UFOs."
Since 2008, several copycat and feeder schemes, which the FSC believes were Ponzis, crumbled leaving investors out of pocket by billions of dollars. Local think tank group, Caribbean Policy Research Institute has estimated the value of the Jamaican schemes at between $100 billion and $200 billion.
However, the State's regulatory arm boss remains unsure whether the companies are still operating and taking new investments despite the well known collapses.
"The Unregulated Financial Organisations listed operate below the radar, so, in keeping with that modus operandi, we cannot say with any certitude which entity is or is not operating, and it is because of their unregulated status why we are unable to address your question with certainty," Barnett said.
Among those entities included on the FSC blacklist of 62 UFOS are Outstretched Hands Limited, Regency Capital Worldwide, Hands Across Jamaica, CAREIF Investment Fund, Cash Plus Limited and Olint Corp. The names of companies' principals are also listed in the FSC's print media advertisements.
"As far as the FSC is concerned, as long as there are investors out there who have been defrauded, have been unable to contact these promoters, have been unable to recover their investment and have not been able to get any accounting of these operations and (know) what happened to their hard-earned money, these matters remain unresolved and are, therefore, of interest to the regulator," the FSC head said.
The commission continues to urge the public to exercise caution when considering investment options.
Get the facts
The FSC executive director advised that when making financial investment decisions, individuals should obtain as much information as possible about the entity and the investment product involved.
They are also urged get independent professional advice from licensed dealers and or investment advisers on the risks associated with investing in particular investment products. These professionals, the FSC said, can ensure that clients are made aware of all the costs to be assumed in making their investments.
Persons in doubt about the status of investment products and companies offering them are advised to contact the FSC to determine if the investment product is registered or the dealer licensed, before putting up their money.
The public notices intended to unmask the unregulated schemes, Barnett said, will continue.
"This remains a matter of concern for the regulator, and it is our duty to remind the public of the reality of 'get rich quick' schemes," according to Barnett.
Jamaicans who are yet to recover their monies from the listed schemes are advised to maintain contact the various liquidators.
