FSC, the Financial Service Commission, is a financial services regulatory body that works under the Insurance Act, Securities Act, FSC Act and Pensions Act, and various regulations.
The Board of Commissioners authorized the financial service commission comprising a chairman and nine other commissioners, including the Executive Director selected by the other commissioners. And the commissioners appointed by the Minister of planning and finance.
The Executive Director deals with the administrative and executive functions of FSC. And the Financial Service Commission has a responsibility to regulate, supervise and monitor the insurance, securities, and private pension industries. It also has a role to investigate and authorize the entities under its jurisdiction.
FSC Mission and Vision
Vision
The FSC’s vision is to become a relevant, impartial, and credible financial services regulator. A regulator that actively encourages the stakeholder’s participation to build a robust financial service sector.
Mission
FSC’s mission is to promote stability, soundness, and transparency in the financial sector. Using its efficient and knowledgeable workforce aims to provide efficient and effective regulation and supervision of the financial services for sustainable development of the sector.
FSC history
The Financial Services Commission was established on 2 August 2001 to replace Unit Trusts and Securities Commission and Office of the Superintendent of Insurance (OSI). It came into existence under the Financial Services Commission Act.
It came into existence when Jamaica’s financial sector suffered from instability and inefficiency in the 1990s. So, the Government of Jamaica had to be involved in administering the financial institutions.
While on 31 December 2013, the FSC regulatory entity monitored 792 superannuation funds and 14 retirement schemes. Out of these 440 are the active funds and retirement schemes.
FSC Roles
FSC is authorized by FSC Act section 6 to fulfil the following roles and duties to achieve its mission.
- Regulate and supervise the financial institutions under jurisdiction.
- Foster the adoption of strategies used by the trustees, management, and boards of directors of the regulated financial institutions to manage and reduce the risk.
- Enhance the stability and efficiency in the financial institution’s operations for increasing public confidence.
- Assist public understanding of the financial operations of regulated financial institutions.
- Modernize the financial services to adapt and maintain relevant, competitive, and efficient international standards.
FSC values
The specific values of FSC consist of the following elements:
- Accountability
- Communication
- Integrity
- Confidentiality
- Fairness
- Teamwork
- Excellence
FSC core functions
The regulatory entity of FSC is to regulate and supervise the integrated financial institutions that include insurance, private pensions, and securities sectors.
Generally, FSC supervises and administrates almost 614 institutions and approximately 4800 individuals conducting financial services in the above-mentioned sectors. The firms and individuals in the pension, securities, and insurance sectors include:
- Mutual Funds
- Securities Dealers
- Investment Advisors Representatives
- Unit Trusts
- Investment Advisors
- Securities Dealers Representatives
- Pension Trustees
- Pension Administrators
- Pension Investment Managers
- Insurance Brokers
- Insurance Sales Representatives
- Insurance Agencies
- Pension Funds And Retirement Schemes
- Insurance Companies
- Insurance Consultants
- Insurance Loss Adjusters
These institutions’ relevant regulations are Pension Act, Unit Trusts Act, Insurance Act, and Securities Act.
The Financial Services Commission also deals with customer issues and complaints. Also, it provides essential financial information to the public. However, the complaints Department examines all the issues of insurance, pension, and securities customers.
FSC areas of operation
The Financial Services Commission fulfils its responsibilities with the collaboration of its several divisions and departments. The divisions and departments in the FSC are following:
The Actuarial Division
It is responsible for assisting all the registered and licensed entities within the FSC about actuarial matters.
The Compliance and Internal Control Division
The primary role of C&IC is to ensure that the regulated framework of the FSC is efficient and maintained. An efficient institutional framework assures that all the best practices, regulations, policies, and applicable laws are accomplished.
The Corporate Services Division
The corporate services division is accountable for providing support to all the other divisions within the FSC. It promotes customer service ethics for both external and internal customers of FSC. It works to provide a safe and controlled environment that ensures security and assets maintenance in financial institutions. The primary role is to interact with the national, international, and local agencies to foster FSC international standards.
The Legal Services, Research, and Policy Division
The legal department’s role is to provide legal advice, services, and litigation support to the FSC. The legal department collaborates with the policy and research unit that provide research to the organization in terms of economic, sectorial and legal perspective. The research department gives targeted data to the organization related to the financial market that develops the policy development of the FSC.
The Registration Department
It is responsible for providing registration and licensing to the regulated entities and institutions that operate within the securities, pension, insurance sectors authorized by their respective regulations and Acts. To be licensed and registered, entities need to provide documents related to their acts in the registration department for conducting financial activities in the market.
The Insurance Division
The insurance division has a role in administering and enforcing the Insurance Act and registration. To fulfil these responsibilities, the insurance division must regularly enforce the supervisory techniques in the entities and monitor the effectiveness and risk management system.
The Pension Division
This department is responsible for regulating and administrating the private pension funds established by the pensions Act. The primary function of it is to enforce the legislation and regulations related to its respective Act.
The Securities Division
This division is responsible for the enforcement and maintenance of the Securities Act and regulations. In addition, it fulfils its responsibilities for the analysis of the registered entities and their evaluation with the help of examining financial statements.
Bottom line
The financial services commission began its operations as an integrated self-financing regulatory authority to protect the customers of securities, pension, and insurance sectors. It ensures their stability, integrity, and well-being to foster the financial sector at international standards.
Overall the FSC’s primary purpose is to regulate and supervise the institutions to provide insurance regulation and requirements for the operations, registration, and supervision of entities in FSC related to trust schemes, pension funds, and securities.