The problems experienced in Jamaica, in the middle of the 1990’s, when the life insurance industry and most of the banking sector collapsed led the government and regulators to examine the causes. Measures were implemented that were aimed at solving the problems associated with the life insurance industry. In the process, a number of life insurance companies were forced to merge to ensure viability. In contrast, the general insurance industry saw only one failure which was salvaged through government assistance.
The FSC was given the mandate to regulate and supervise the pensions industry. This mandate includes the approval and registration of approved superannuation funds and retirement schemes, the registration of trustees and responsible officers and the licensing of administrators and investment managers. The FSC provides these and other regulatory services in order to protect pension plan beneficiaries as well as to support a healthy and stable pension industry.
A critical component in building a stable industry and protecting pension plan beneficiaries is ensuring that trustees and their agents such as administrators and investment managers operate in an ethical manner and therefore faithfully discharge their fiduciary responsibilities. It is for this reason that the FSC, under Phase I of the pension reform agenda with the approval of the Minister of Finance, promulgated four (4) set of regulations namely the: