The FSC completes its work through several Divisions and Departments within the FSC:
The Actuarial Division is responsible for providing advice and guidance within the FSC with respect to all actuarial matters concerning registered and licensed entities.
The role of the C&IC Division is to ensure that the FSC fosters and maintains an institutional framework that gives assurance that all applicable laws, regulations, rules/best practices and policies and procedures are adhered to.
The C&IC Division, as with any similar internal control mechanism, serves to:
- reinforce and preserve the integrity of the regulatory system being administered;
- ascertain and report the extent of non-compliance with established policies, plans, procedures, laws, and regulations and thereby promote improvement in compliance;
- assist in the identification of deficiencies in areas in the statutes, processes and practices which need to be addressed, including for harmonisation;
- aid in the strategic planning process by assisting in identifying and prioritizing risks;
- ensure openness and transparency of regulatory activities; and
- ascertain the timeliness, reliability, and usefulness of data developed and maintained.
The major responsibilities of the C&IC Division therefore include:
- Assessing operational processes to determine if these provide reliable safeguards in terms of compliance with relevant regulations and policies;
- Working in partnership with management to ensure policies and procedures are effective and efficient, and suggesting policies and procedures where appropriate;
- Serving as a resource to the organization in identifying the need for and characteristics of adequate systems of control;
- Developing and implementing review plans and programs that respond to both risk and cost-effectiveness criteria;
- Providing reports that identify internal control issues and make cost-effective recommendations to strengthen controls;
- Facilitating the resolution of findings with those who have the most direct involvement and accountability (i.e. the risk managers);
- Maintaining review standards, similar to generally accepted internal auditing standards to ensure effectiveness and quality; and
- Undertaking internal financial audit work
Areas that are considered for comparative measurement include:
- Statutory requirements of the FSC as detailed in the relevant Acts and Regulations, and summarized in the document, “Roles and Responsibilities of Commissioners & Management
- Current organizational Policies & Processes including standards and Supervisory Ladders developed
- International standards from IAIS, IOSCO, & IOPS, as well as GARP for Records Management, IFRS for accounting, and Best Practices identified for IT and HR, and
- FSAP outcomes
The C&IC Division in fulfilling its responsibilities will carry out risk assessments especially of the industry divisions, in order to identify and prioritize areas for review. Strategic work plans and detailed work programme would then be developed, based on the prioritization. Subsequent to the testing of control systems, findings identified would be documented for reporting, and would involve senior management presentations and submission to the Audit Committee of the Board of Commissioners. This would be followed up with a monitoring mechanism in order to ensure that any deficiencies identified would be addressed.
Further, the C&IC Division is available to undertake special projects (including confidential projects), as assigned, including special directions received.
The C&IC Division establishment includes a Senior Director as head of the Division, with two direct reports – a Manager, C&IC, and a Risk Officer. Two Senior Analysts report to the Manager. The remit of this C&IC Division extends to all operational units within the FSC, so in the staffing of this Division, a significant advantage is having experience in a regulatory environment and in internal control, as well as knowledge of the industries and relevant statutes administered by the FSC.
The role of the Corporate Services Division is to provide operational support to all other divisions in the FSC.
The Corporate Services Division is responsible for:
- maintaining an efficient and effective records and information system that ensures the receipt, capture, dissemination and management of information to support the business functions and mandate of the FSC
- ensuring the efficient and effective management of the financial resources of the Commission
- facilitating the efficient operation of the FSC, for both internal and external customers, through IT support systems
- ensuring that the physical assets of the FSC are maintained and managed effectively and that systems and programmes are implemented to ensure the safety of staff and the security of the office, in normal times as well as during disasters.
- managing and increasing the effectiveness and efficiency of support services (IT, Procurement, Property Management, Records and Information Management and Finance and Planning), through improvements to each function as well as coordination and communication between support and business functions
- overseeing and monitoring expenditures, in keeping with the Government of Jamaica’s (GoJ) procurement legislation and guidelines
- coordinating and documenting the strategic plans, in accordance with the requirements of the Ministry of Finance and Planning and;
- ensuring compliance of the GoJ’s procurement legislation and guidelines, as issued by the Office of the Contractor General.
The major responsibilities of the Corporate Services Division therefore include:
- Promotion of customer service ethics across the FSC for both internal and external customers.
- Provision of a comfortable and safe environment for staff.
- To maintain the office in an efficient manner ensuring that the office is secure, supplies are readily available, and furniture, equipment and assets are maintained and supported by appropriate records.
- Provision of property management services, adequate office supplies, furniture and equipment to facilitate continuous workflow.
- Implementation and maintenance of an effective financial and management accounting system to account for the Commission’s income, expenditure, assets and liabilities, and to disseminate all required financial and other reports on a timely basis.
- Coordination and development of business plans and to monitor performance to ensure compliance with approved goals and targets.
- Interaction with related local and international entities/individuals to ensure that the FSC establishes and maintains best practices and standards.
- Interactions with international funding agencies.
The Investigation and Enforcement Division plays a pivotal role in enabling the FSC to execute its statutory mandate through the performance of its daily functions, pursuant to the relevant FSC administered legislation. These include:
• conducting special investigations and examinations to gather evidence where there are cases of suspected breaches of the relevant FSC administered legislation.
• conducting enhanced due diligence exercises in order to determine the fitness and propriety status of prospective and current registrants and licensees.
• receiving and processing complaints from the public concerning the practices of licensees and registrants, which fall within our regulatory remit.
The Investigation and Enforcement Division also houses the Anti-Money Laundering (“AML”) Unit. The AML Unit has responsibility for the monitoring and supervising our licensees and registrants, on a risk basis, to ensure compliance with the Proceeds of Crime Act (POCA), The Terrorism Prevention Act (TPA), and The United Security Council Resolutions Implementation Act (UNSCRIA) and their attendant Regulations as well as to lessen the possibility of our licensees/registrants being used as a conduit for Money Laundering/Terrorist Financing/Financing the Proliferation of Weapons of Mass Destruction.
The Legal Services Research and Policy Division ( LSR&P Division) has three main arms-
(a) the Board Secretariat
(b) the Legal Services Department; and
(c) the Research and Policy Unit
The LSR&P Division is staffed with an energetic team of professionals who are constantly gearing themselves to meet the challenges faced in a constantly changing regulatory environment.
One of the key functions of the Division is to ensure that the legislation administered by the FSC operates are current and relevant.
The Legal Department provides legal advice to the FSC, litigation support and legal services.,
The Legal Department in conjunction with the Research and Policy Unit serve the research needs of the organization from legal, economic and sectoral perspectives. The Research Unit provides targeted data pertaining to financial markets. This contribution drives policy development by the FSC.
The Board Secretariat provides administrate support for the FSC’s Board of Commissioners. In doing so, it coordinates the information flow between the Board and the management of the FSC; arranges meetings and ensures that proper records of Board proceedings and decisions are kept.
The Department is headed by the General Counsel who also serves as the Board Secretary and in that capacity provides guidance to the Board of Commissioners on issues of corporate governance including its obligations under the Public Bodies Management and Accountability Act.
The Legal Services, Research and Policy Department provides services for all other departments within the FSC and can therefore be seen as a backbone for the organization.
The Registration, Corporate & Trust Services Division is responsible for facilitating the registration and licensing of entities and individuals operating within the Insurance, Securities and Private Pension industries, guided by their respective Acts and attendant Regulations. In order to be licensed or registered, applicants are required to submit documents pursuant to the relevant Acts and regulations, to be assessed for fitness and propriety, thus deeming them suitable to conduct business in the relevant capacity.
The Registration Process
An entity applying to the Financial Services Commission (“FSC”) for registration or licensing is required to submit the relevant application form, properly completed and signed, accompanied by the requisite supporting documents. Applications deemed incomplete are not accepted by the FSC and will be rejected. Once an application is accepted, the FSC will assess the documents submitted to determine if the applicant has satisfied all the conditions as prescribed by the respective Acts and attendant regulations. In order to complete its determination, the FSC may require the applicant to submit additional information or will instruct the applicant to make changes deemed necessary. Once an applicant has satisfied the requirements, the application will be approved and a certificate of registration or licence issued.
If however, the assessment is completed and it is determined that the applicant has not satisfied the conditions as stipulated by the respective legislation, the FSC will inform the applicant in writing of the refusal, stating the reasons for the refusal and informing the applicant of the right to an appeal.
The Insurance Division has responsibility for the administration and enforcement of the Insurance Act and Regulations.
Discharge of these responsibilities is achieved using a combination of established supervisory techniques including regular monitoring of institutions with the aim of ensuring that all registrants are in sound financial condition and have proper internal controls and risk management systems.
The Pensions Division has oversight and monitoring of private pension funds pursuant to the Pensions Act and has responsibility for the administration and enforcement of this legislation and related regulations.
The Securities Division is responsible for the administration and enforcement of the Securities Act and Regulations.
The Securities Division discharges its responsibility by analyzing each licensee’s business activities and results and by examining financial statements.
This includes surveillance of activities on the JSE and the Jamaica Central Securities Depository. The Division also analyses and advises on JSE rule changes and decisions regarding takeovers and mergers.