NOTIFICATION TO PRIMARY DEALERS
Please read this notification through in its entirety
- As is the case with persons who are licensed by Bank of Jamaica (BOJ) or who are licensed pursuant to the recommendation of the Bank, Primary Dealers must also meet the Bank’s ‘fit and proper’ standards prior to obtaining Primary Dealership approval or in order to retain Primary Dealership designation.
- For the purposes of this requirement ‘principals’ of Primary Dealers and of applicants for Primary Dealership status, shall include the directors, and shareholders holding or exercising 10% or more of the company’s shares, whether such rights are held solely by an individual or jointly with another person or other persons managing those operations on the company’s behalf.
- For the purpose of this requirement ‘manager’ shall include any person who has the authority to direct the operations of the company whether such person managing is formally employed in that capacity or not.
- The application of the ‘fit and proper’ criteria shall be an ongoing process and shall be in effect throughout the person/s affiliation with the designated Primary Dealer. In accordance with this policy, ‘fit and proper’ reassessments will be conducted every five (5) years on the persons who have already been assessed.
- Approvals shall, therefore, not be granted to any company unless the principals are deemed to be ‘fit and proper’ for that purpose. Similarly, BOJ shall not renew the Primary Dealership of any company unless its principals and managers thereof meet the ‘fit and proper’ criteria specified herein. To meet the ‘fit and proper’ criteria, the above principals and managers must be persons who:
- have not provided any false or misleading information to BOJ on the Personal Questionnaire for Assessment of Primary Dealers Under the ‘Fit and Proper’ Criteria (‘Fit and Proper Questionnaire’) or in any related document,
- have declared all information as required by the ‘Fit and Proper’ Questionnaire,
- have not been convicted of any crime involving dishonesty,
- are confirmed by the Police, as having satisfactory records,
- are confirmed as having satisfactory clearance from the Financial Investigations Division (FID) of the Ministry of Finance and the Public Service. The process of obtaining the relevant clearance involves the payment of a fee. are not persons barred from holding positions as shareholders, directors or managers of banks, licensed financial institutions or any other entity pursuant to the provisions of the Banking Services Act(September 2014) or other statutory enactment.
- are not persons barred from holding positions as shareholders, directors or managers of banks, merchant banks or any other entity pursuant to the provisions of the Banking Services Acts or other statutory enactment. Pursuant to section 38 (1) of the Banking Services Act such persons may apply to the Supervisor or Supervisory Committee for exemption.
- are not persons barred for a reason other than set out in (f) above. In this case such persons may apply to the Minister for exemption.
- in the opinion of BOJ are persons of sound probity, and are able to exercise the required level of competence, diligence, and sound judgement in fulfilling their responsibilities as Primary Dealers; and who do not constitute a threat to good order in the Financial Markets and Payment Systems; and for the purposes of this paragraph BOJ may have regard to any evidence that these persons have: –
- engaged in previous business or financial practices which appear to the Bank to be deceitful or oppressive or otherwise improper or indicative of poor financial management skills;
- contravened any provision of any enactment designed for the protection of the public against financial loss due to dishonesty, incompetence or malpractice by persons concerned in the provision of banking, insurance, investm