Cornerstone Group and its subsidiary, Barita Investments Limited, are pushing on with their reorganisation in compliance with the Banking Services Act regarding financial holding companies.

Both entities are reporting that steps have been taken to reorganise in compliance with the act—further to its press release dated March 17, 2023, indicating the Bank of Jamaica’s (BOJ) issuance of a non-objection letter dated March 10, 2023, regarding the planned reorganisation of the group and Barita.

Under Section 69 of the act, any group of companies which includes a deposit-taking institution and another financial institution, is required to reorganise itself so that the financial institutions are held by a financial holding company.

Accordingly, the reorganisation is being effected to ensure that all regulated entities within the group are held under a single holding company to enable consolidated supervision under the Banking Services Act by the BOJ. 

Under the proposed new structure, BIL, Barita Unit Trusts Management Company and Cornerstone Trust & Merchant Bank will be held and operated under a newly formed company intended to serve as the financial holding company for the group.