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Responding to a recent spate of fraud cases among employees in the financial services sector, the Jamaica Securities Dealers Association (JSDA) is moving to sure up stakeholder confidence in the industry.

“Over the recent months the Jamaican investment landscape has seen instances of infractions that have implications for reputational risks and confidence erosion occasioned through employee fraud,” the JSDA said in a statement tonight (January 17), noting that industry players were conscious of the prevailing issues and their inherent risks and are working to educate and maintain stakeholder confidence and trust.

The Steven Gooden-led JSDA said it works closely with regulators “to develop and adhere to appropriate systems for the industry, which facilitate the advancement of the industry and protection for investors”.

“The JSDA operates with the values of – Credibility, Standardisation, Transparency, Collaboration, and Innovation with a mission to promote the interest of the securities industry in Jamaica and to develop and improve standards in the industry,” the association said.

The members of the JSDA said they were committed to:

• transparency and integrity in the management of client assets and data; and 
• the expansion in access to investing and wealth creation which provides a strong foundation for a vibrant thriving economy.

“Additionally, the JSDA noted, the Financial Services Commission (FSC), as the regulator for the securities industries, is charged with supervising its licensees under the Insurance, Securities and Unit Trusts laws.

The FSC is also charged with supervising registered trustees and licensed administrators and investment managers of private pension plans for best sound practices. In doing so, the FSC oversees the registration, solvency and conduct of firms and individuals doing business in the securities and insurance (Life and General) industries, such as:

• Securities Dealers;
• Investment Advisors;
• Securities Dealers’ Representatives;
• Investment Advisors’ Representatives;
• Mutual Funds;
• Unit Trusts;
• Insurance Companies;
• Insurance Brokers;
• Insurance Agencies;
• Insurance Managing General Agent;
• Insurance Sales Representatives;
• Insurance Loss Adjusters; and
• Insurance Consultants.

“We are deeply concerned regarding the recent incidences of employee fraud within the industry. While we cannot comment on the cases under investigation in order not to prejudice the process and outcome, we are committed to a thorough investigation and full accountability for all perpetrators of fraud,” the JSDA said.

“Based on the fact the recent cases are being investigated by the relevant authorities, we are unable to comment on any individual client matters, in order not to prejudice any investigations.

“As businesses, we are mindful that fraud is a reality in both the local and global financial industry. To mitigate against fraud, our institutions implement various detection and prevention mechanisms, which require constant evaluation and improvement as new and more sophisticated fraud schemes continue to emerge.”

Added the JSDA: “As financial institutions, we will work collectively and independently to ensure that all customers are fully apprised of measures that are at their disposal to do personal checks and balances. We are committed to enhancing our internal and industry controls, educating our clients, and improving our service through the consistent use of best practices and systems that detect and prevent gaps, ensuring the safety of our clients and business.”

“Customers will be hearing from us and are encouraged to remain vigilant and regularly monitor their accounts through online platforms and suspicious activities should be reported through the appropriate channel provided by each institution.”

Jamaica Securities Dealers Association

The JSDA acknowledged that its customers have entrusted its members as custodians of their investments, and declared that this was a responsibility they did not take lightly.

“As such, we commit to full transparency as we identify and implement opportunities for constant improvements,” the JSDA said.

“In closing, customers will be hearing from us and are encouraged to remain vigilant and regularly monitor their accounts through online platforms and suspicious activities should be reported through the appropriate channel provided by each institution.”

The JSDA statement comes in the wake of revelations in recent months of massive cases of fraud at institutions including Sagicor, National Commercial Bank and Stocks and Securities Ltd.

RECENT FRAUD CASES

Just last Friday (January 13), the island was made aware of the disappearance of more than $1 billion from the accounts of SSL customers, including sprint legend Usain Bolt.

Later that same day, it was reported that a wealth advisor at NCB’s branch in St Ann had been arrested in connection with disappearance of more than US$30,000 from the account of a customer.

On Monday, as a result of a follow-up audit, the now former NCB employee was charged with defrauding US$143,000, or more than US$20 million from in relation to that case.

The most recent incidents follow the revelation late last year that customer accounts at Sagicor had been defrauded of more than $65 million in a fraud case that has resulted in the arrest and charge of at least three individuals.