THE Jamaica Securities Dealers Association (JSDA) says it is preparing to learn from the issues which led to the multi-billion-dollar fraud at Stocks and Securities Limited (SSL), saying the incident is “very unfortunate and doesn’t reflect the industry on a whole”.
The association added that its members are keen to implement measures to strengthen the prevention and detection of fraud as it assures nervous investors that their funds remain safe.
The securities dealers gave the assurance at a Jamaica Observer Business Forum on Thursday as they seek to restore calm amid jitters in the market caused by the issues at SSL, adding that “fraud doesn’t decline the efficacy or the strength of the controls within the industry as a whole. It does, however, potentially highlights weaknesses” to be eliminated.
“The reality is that this particular incident is unique. It’s an outlier. If you look at the history of the industry, occupational fraud, employee fraud, theft, is very low and there are data and history to support that particular view,” Steven Gooden, CEO, NCB Capital Markets and president of the JSDA, told the Caribbean Business Report.
“If that wasn’t the case, then you would’ve seen continued losses, et cetera, being incurred by securities dealers, and we would have been required to hold more capital as a result,” Dane Brodber, the interim CEO at Barita Investments, added.
Other heads of securities dealers at the Business Forum were Tara Nunes, CEO Sagicor Investments; Julian Mair, chief investment strategist, JMMB Investments; Johann Heaven, group deputy CEO, Proven Wealth and vice-president of the JSDA; and Gary Peart, CEO, Mayberry Investments.