Among the focus is the relaxation of pension fund investment limits and other regulatory requirements

Durrant Pate/Contributor

In response to calls for modernising Jamaica’s financial sector to bring about greater protection and efficiency, the Financial Services Commission (FSC) has embarked on a four-year regulatory timetable to effect the necessary changes to bring about international best practices.

Making the disclosure was FSC Executive Director, Lieutenant Colonel Keron Burrell, in response to a question about revision of restrictions in the financial sector at the just concluded Jamaica Stock Exchange (JSE) 21st Regional Investments & Capital Markets Conference 2026, held at the Jamaica Pegasus Hotel.  Lt. Colonel Burrell indicated that the review, which is now on in earnest, is focused more on the pension side of the sector, looking at adjustments in pension fund investment allocation and limits. 

Speaking on the topic, ‘Effective Regulation to fuel growth and development in the Capital Markets’, the FSC boss emphasised that the review is part of the wider financial sector regulatory architecture, referring to the Pension Industry Association of Jamaica (PIAJ) call for a relaxation in key limits. These limits include a maximum 10% on foreign currency assets, 5% on private company investments, and strict, diversified portfolio constraints as well as contributions, which are generally capped at 20% of annual income for tax-deferred benefits. 

Regulations outdated and in need of urgent review

Lt. Colonel Burrell told the 3-day conference, ended yesterday that the FSC is cognizant of the debate and criticisms of the current regulatory environment, which industry players say is outdated and in need of urgent review, promising that its examination will have inputs from all stakeholders, as the commission, whose mandate is regulating the non-deposit taking financial sub-sector, contemplates adjustments in pension funds investment allocations and limits. 

”Any change will be evidence-based,” the chief pension fund regulator asserted, saying the FSC will also assess the risk on market capacity. Turning to the announcement by Prime Minister, Dr. Andrew Holness on Tuesday’s opening night of the conference that changes are coming to the regulations governing Jamaica’s financial sector, the FSC Executive Director said the regulatory body is conscious that financial market regulations must be under constant review to keep ahead of the changing times declaring that the government’s directive will feed into its four-year regulatory review.

“We will wait upon a formal policy directive from the government. Once we see the directive, it will be assessed to determine concrete actions to be taken,” Lt. Colonel Burrell told the audience of mostly financiers, regional business leaders and corporate moguls. He stated that the evaluation of this policy directive, when it arrives, will be executed alongside the FSC’s four-year regulations roadmap taking into account international best practices. 

He declared that the FSC stands ready to work with the government, JSE and industry to ensure that this sector grows and develops. Some of the key limits being pushed for change by PIAJ, which are being examined by the FSC.

·      Foreign Asset Limit: Pension funds are restricted to a maximum of 10% of their total assets in foreign currency-denominated instruments.

·      Private Equity/Debt: Investments in the equity or debt of private companies are limited to a maximum of 5% of the total fair value of the fund’s assets.

·      Concentration Limits: Regulations include limits on the amount invested in any single company or related group of companies to manage risk.

·      Asset Allocation: While not strictly capped, typical portfolios are diversified to include government securities, equities, and real estate, with oversight by trustees to maintain compliance. 

These regulations are designed to protect, maintain, and secure the long-term solvency of pension funds in Jamaica. Also addressing the conference was Claude Haylock, Director General Financial Services Commission in Belize, who was asked about developing a local stock exchange in his country.

He disagreed that Belize needs a stock market of its own, saying the country is too small to have a stock exchange of its own, but posited that the JSE could assist in facilitating the trading in shares of public companies in Belize.