SSL Temporary Management


Letter Received from SSL

  • 10 January 2023

On Tuesday January 10, 2023, the Financial Services Commission (“the Commission”) received a letter from Stocks and Securities Limited (“SSL”) advising of an
incidence of fraud at the company.

10 January 2023
12 January 2023

Issued Direction

  • 12 January 2023

The Commission issued Directions dated January 12, 2023, in keeping with its powers under Section 8(1)(b) of the Financial Services Commission Act (“the FSC Act”).

Appointed BRSL

  • 16 January 2023

The Commission appointed Business Recovery Services Limited (“BRSL”) as Special Auditor to assist the FSC in its enhanced supervision of the entity and the continuing investigations into its operations on January 16, 2023.

16 January 2023
17 January 2023

Assumed Temporary Management

  • 17 January 2023

The Commission assumed temporary management of SSL on January 17, 2023, pursuant to powers under section 8(5)(b) of the FSC Act and appointed Mr. Kenneth Tomlinson of BSRL to manage SSL on its behalf, pursuant to paragraph 1(2) of Part C of the Third Schedule to the FSC Act.

MOF Signs Agreement With Kroll Associates To Probe SSL Fraud

  • 7 March 2023

Hon. Nigel Clarke, DPhil., MP, Minister of Finance and the Public Service and Howard Cooper, Managing Director at Kroll Associates Ltd., UK, signed a Statement of Work to conduct a forensic audit to identify the nature, extent and value of the fraud perpetrated and to identify any potential assets or benefit obtained by directors, shareholders, employees or parties connected to Stocks and Securities Limited (SSL).

7 March 2023

Application to Supreme Court

The Commission has also sought to comply with paragraph 1(5) of Part C of the Third Schedule of the FSC Act in that an application was made in the Supreme Court of Judicature of Jamaica for an order confirming the vesting in the Commission of full and exclusive powers of management of the institution. Further, the Commission believes that having conducted an assessment of the state of affairs within SSL, the entity is insolvent, as such, an application has been made which if granted would see the entity be wound-up.

Transfer Approval

  • 22 September 2023

Effective September 22, 2023, the Commission approved the transfer of local client securities held at the Jamaica Central Securities Depository from SSL’s custody to a securities dealer (that is also a registered member-dealer with the Jamaica Stock Exchange) selected by the client.

22 September 2023
11 April 2024

Transfer of the Proceeds of International Securities

  • 11 April 2024

As at April 11, 2024, 98% of this international portfolio were liquidated.  In relation to these international securities, once accounts have been reconciled, funds are to be remitted directly to clients based on their instructions.

Transfer of Local Securities

  • 16 April 2024

About 70% or $16.035 billion in Jamaican dollar denominated assets held in SSL’s off-balance sheet portfolio transferred to clients since transfers began in September 2023. Jamaican dollar denominated assets include Jamaican equity and fixed income securities and Jamaican dollar cash. 

16 April 2024

The Financial Services Commission Act

An act to provide for the establishment of a body to be responsible for the regulation and supervision of entities providing financial services that do..

The Securities Act

An act to make provisions relating to the securities industry, to provide for the establishment of a Securities Commission and for connected matters…

The Proceeds of Crime Act

An act to provide for the investigation, identification and recovery of the proceeds of crime and for connected matters…

Temporary Manager

Business Recovery Services Limited (BRSL) was established in May 2000 by a group of experienced and qualified professionals to undertake major assignments in both the Public and Private sectors with the primary objective of undertaking Insolvency appointments, specifically, Bankruptcies, Voluntary winding up, Proposals, Receiverships and Interim/Temporary Management.
What is a Temporary Manager?

A Temporary Manager is a person or company appointed to manage the affairs of a prescribed financial institution on an impermanent basis. A temporary manager may be put in place when there are concerns about the overall management of the entity.

What is the purpose of a Temporary Manager?
The purpose of the Temporary Manager is to ensure that the day-to-day operations of the entity are properly managed. This includes:
  • Continuing or discontinuing operations;
  • Stopping or limiting payments of the company’s obligations;
  • Employing necessary officers or other employees;
  • Executing any instrument in the name of the institution;
  • Initiating, defending or conducting any action to which the institution is a party in the name of the institution.
How does appointing a Temporary Manager help SSL clients?

Section 8 (5)(b) of the FSC Act gives the Commission the power to appoint a temporary manager to replace the existing management team if certain requirements are not complied with. The FSC appointed a temporary manager to oversee the operation of SSL and to verify the assets and liabilities of the company. The temporary manager is responsible for ensuring that the assets held by SSL are proportionately allocated to all clients without prejudice. The temporary manager is also responsible for determining the existence of all the assets and liabilities as well as prevent any possible misappropriation of the assets. Once this exercise is completed, the temporary manager will then ascertain the amount of assets due to each client. This is beneficial to the clients as an independent unbiased third-party verification of the assets is conducted.

What will happen at the end of the temporary management?

An assessment will be done to determine if all the objectives of the temporary manager’s contract have been achieved and a decision taken based on the recommendation of the temporary manager. This would also depend on the conclusion of matters that are currently before the court.

Is the financial sector safe?
How do I go about getting back my money?

SSL under the temporary manager has been publishing notices that indicate how clients should proceed in order to retrieve their funds.

Please see link to notice

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