Durrant Pate/ Contributor

Micro lender Access Financial Services (AFS) has admitted to breaching certain provisions outlined in Appendix 1 of the Junior Market Rules of the Jamaica Stock Exchange (JSE), where its shares are publicly traded.

The specific breach relates to the composition of the Audit & Risk Committee and the Human Resource & Compensation Committee. At present, AFS is not in compliance with the composition of these two board committees, as detailed in the updated requirements for the composition of board committees.

In admitting to the breach, the management of AFS is reporting that proactive steps have been taken to correct this non-compliance. 

Audit & Risk Committee

At present, the Audit & Risk Committee comprises two non-independent directors and one independent director. AFS acknowledges that this composition does not meet the requirements set out in Appendix 1 and wishes to assure the market that proactive steps have been taken to rectify the matter.

An additional independent director has been identified to enhance the independence of the board and its committees. However, as a regulated entity under the Microcredit Act, all new board appointments are subject to a “fit-and-proper” assessment by the Bank of Jamaica (BOJ). 

This vetting process is currently underway for the proposed independent director, who is expected to assume the role of Chairman of the Audit & Risk Committee, pending BOJ’s approval.

Human Resource & Compensation Committee

This committee currently comprises two independent directors. In line with the requirements of the JSE’s Junior Market Rules, AFS is in the process of expanding this committee. 

As with the Audit & Risk Committee, the expansion is contingent upon the BOJ’s approval of the additional independent board nominee. The management says the company remains committed to full compliance with the JSE’s regulatory framework and will continue to provide updates as the approval process progresses.

Preventing similar breach by EduFocal

Earlier this week, EduFocal, the Caribbean’s premier EdTech innovator, reported that it has moved to make changes to the composition of its Audit Committee to prevent being in a similar breach of the updated requirements, specifically Appendix 1 and Rule 504 2(b).

EduFocal has confirmed three new Independent directors to its Audit Committee. They are Durval Williams, who has an accounting/ financial background, who will serve as chairman, Shauna-Gaye Fuller Clarke and Grace Lindo.