ECNETNews, New York, NY, Tues. Sept. 24, 2024: The Jamaica Financial Services Commission (FSC) has announced that Stocks and Securities Limited (SSL) will soon begin distributing approximately US$30 million to clients who have been awaiting the recovery of their investments for over a year.
Notable figures, including Olympic champion Usain Bolt, are among those affected by the financial turmoil.
In a recent statement, the FSC confirmed SSL’s significant progress in its plans to compensate affected clients, based on the latest updates from the trustees overseeing the company’s operations.
Proceeds from SSL’s Client Portfolio
The compensation will primarily be derived from the sale of SSL’s international securities client portfolio, valued at over US$30 million. SSL has faced a fraud scandal since January 2023, resulting in multiple lawsuits that have raised questions about the firm’s governance.
The Ongoing Fraud Investigation
This major scandal has deeply impacted Jamaica’s financial sector, involving a multi-billion-dollar fraud inquiry affecting numerous clients, including Usain Bolt, who reportedly lost over US$12 million. In response, the Jamaican government has sought assistance from authorities to bolster the local investigation.
Changes in SSL Management
After temporarily overseeing SSL’s management, the FSC lost authority in May 2024 when Justice David Batts ruled in favor of Caydion Campbell, the trustee appointed by SSL’s former board. The case is scheduled to return to court this week.
FSC’s Oversight and Compliance Measures
The FSC has upheld its regulatory oversight of SSL, issuing directives on July 31, 2024, mandating SSL to provide continuous updates on its operations and the status of payouts to clients. These steps are designed to enforce transparency and accountability during the company’s winding-up process.
“The FSC is committed to ensuring SSL adheres to the legal and regulatory framework under the Securities Act,” said Lieutenant Colonel Keron Burrell, Executive Director of the FSC. He highlighted the Commission’s dedication to protecting SSL’s clients and preserving the integrity of the financial system.
Ongoing Supervision and Law Enforcement Collaboration
The FSC reiterated its commitment to safeguarding SSL investors and ensuring the firm fulfills its obligations with transparency. In collaboration with law enforcement, the FSC is undertaking a comprehensive investigation into the alleged fraud and any related misconduct at SSL.
“The Commission assures all stakeholders that it remains devoted to maintaining transparency throughout this process and will provide updates as necessary,” Burrell added.
