KINGSTON, Jamaica, Thursday, March 28, 2013 – The Jamaica Stock Exchange’s (JSE) Regulatory and Market Oversight Committee (RMOC) has implemented recent amendments that could see listed companies fine of up to JAM$5 million for non-compliance with rules of the exchange.
The new regulations include penalties ranging from JAM$2,500 per day for members who do not submit a schedule showing the number of accounts managed and the dollar value of these accounts each month; to a maximum penalty of JAM$5 million for not keeping proper accounts.
The RMOC holds responsibility for monitoring the adequacy and effectiveness of the JSE’s regulatory programme, and assessing the organization’s regulatory performance, which require activities such as rule formulation and compliance monitoring. It consulted with listed companies and member dealers for up to a year before implementing the new penalties.
According to the Jamaica Observer, over the past five years the RMOC said it has reviewed and decided on 33 regulatory cases involving member dealers and listed companies.
Statistics published by the JSE’s regulatory arm show that the highest areas of delinquency among listed companies are in the timely filing of their audited and annual reports.
Listed companies are required to submit to the exchange their quarterly financial statements within three months of the end of the period to which the statements relate. Within 120 days of the company’s financial year-end, a printed copy of the company’s Annual Report and Financial Statements, are required.
Under the amendments, any listed companies that violate either of these rules will be fined JAM $5,000 per day (including weekends and public holidays) until the default is adequately addressed.
According to the Observer, RMOC chairman Livingstone Morrison said the amendments are part of the JSE’s efforts to raise the local stock market to meet international standards.
“It’s part of a continuing effort to benchmark our rules and regulations, and the associated fines to international best practice….So we wanted to agree to a set of penalties that approximate the level of seriousness that we attact to various violation to the rules” noted Morrison. Click here to receive free news bulletins via email from Caribbean360. (View sample)