Robin Levy is a meticulous man. He states that he has a face for radio but is known for his hosting and emcee duties at various functions, including that of his current employer, the Jamaica Stock Exchange (JSE), where he is the deputy general manager.

However, Levy also wears the hat of general manager of the Jamaica Central Securities Depository (JCSD), and that is where he has distinguished his revenue contribution to the JSE — all by taking the headache from the back offices of corporate Jamaica.

The amount of paper work needed to comply with the regulatory framework in Jamaica is significant. Monthly reports of daily activities, quarterly reports of financial activities, and of course, annual reports — whether financial or otherwise — must be submitted to various agencies with accuracy, timeliness and relevance. And then, if a company has shareholders, they need to be paid their dividends and invited to and hosted at annual shareholders’ meetings.

It can be daunting to companies to have to staff entire departments to undertake these activities. Therefore, in March 2005 Levy, with the blessing of his boss, Marlene Street Forrest, thought that it would make a great business opportunity for the JCSD to offer that service to corporate Jamaica. After all, the JSE already knew the business of regulation of its listed members and the JCSD already maintained registers to advise companies’ filings, so expansion under the subsidiary, which had been in existence since 1998, seemed like a logical extension. The JCSD also already held securities in trust for investors and so expansion into the trust business suggested itself.

Under Levy’s leadership, the JCSD has grown to command the largest register in the island and has over 50 trustee clients. It facilitates more than $600 billion in market capitalisation and generates average returns on shareholders’ equity of at least 10 per cent above treasury-bill rates.

Dennise Williams: Robin, you wear two hats — deputy general manager of JSE and general manager of JCSD. Let us start with the JSE. Over the 12 years you have worked there, how has the equity market evolved in terms of individual investor participation?

Robin Levy: The equity market has come a long way, especially since we started the Junior Market. The success the market has had and the great interest that has been generated in the companies listed have been as a direct result of the good work those companies have done in driving their revenues, creating jobs and proving to be good value to the investors. Even persons who weren’t interested before are now eager for each new IPO. Of course, falling interest rates have helped a lot to shift investor focus away from fixed-income and towards equities, so we can’t take all the credit.

DW: Has the cultural bias towards saving rather than investing changed any over the last 12 years? And what do you think keeps the cultural bias in place?

RL: It hasn’t changed enough for my liking. We have to recognise that there is a huge trust deficit in this country. Jamaicans have to be thoroughly convinced before moving their money out of their savings accounts, regardless of how little the accounts pay. Not that they are risk averse, Lord knows they take enough risks elsewhere. So really, businesses that want to raise capital just need to put in the work to let investors know that they’re trustworthy.

DW: From your perspective, what is the mind set that is required to be a successful equity investor?

RL: A successful equity investor needs to put in the work too. They have to read widely and try to get a grasp of global trends that will translate to local trends and how those will affect companies. And even how good those companies will be at adapting to change, which really is the real differentiator of performance over the medium to long term.

DW: There is the concern by the Bank of Jamaica that the financial sector has not done enough to promote financial inclusion with financial education as a major plank to give households an opportunity to improve their standard of living. What would be your vision for financial inclusion for every Jamaican?

RL: I agree. We have not done enough to include every Jamaican in the sector. Most players are over-focused on the high net worth individuals and on making large business loans, which means that it’s a crowded field. There is a large section of Jamaica’s population that’s never had a bank account or a credit card, mostly because financial service providers see too much effort for too little reward in the short term. These underserved Jamaicans move a lot of money around though, and that makes them prime targets for exploitation by loan sharks and shady investment scheme promoters. At the very least we should insist everyone has some form of savings or investment put aside for their later years, regardless of their current financial situation. Frankly, that’s easier said than done.

DW: Moving from individuals to companies, there has been a great deal of activity on the JSE since the launch of the Junior Stock Market. Many attribute this to the tax benefits companies enjoy. That said, from your perspective, what are the other benefits of listing on the JSE that companies have expressed to you?

RL: The tax benefits make it easier for investors to see the value of the companies, but the companies generally come on board to get accommodative capital they can use to expand their businesses and increase their company values. Additional benefits include the free daily publicity and allowing staff members to participate as part-owners of the company. This serves wonderfully to align staff members’ interest in the business making its profit targets in their capacities as part-owners.

DW: What do you think it would take for there to be 1,000 companies listed on the JSE? Do you think our financial sector is ready to handle such a large jump in the number of companies on the exchange?

RL: Well, the Exchange is ready and I think most brokers would relish a challenge like that. Even the banks would like it, since listed companies make better candidates for their loans because of the improved reporting and governance standards. I think we are ready.

DW: Now to your role as GM for the JCSD. Compliance is a tedious, detail-oriented line of work that many companies are forced to undertake to keep their various licences. When did you realise that the JSE could make millions offering this service?

RL: Wherever you can lessen someone else’s pain or assist them in achieving their goals, that will probably be a good business for you, as long as you can be efficient. We found that we could leverage our existing equipment, processes and people to offer a great service that caught on quickly and has worked well for our clients. Basically, we’ve just been focusing on trying to do a better and better job each year and then let the work speak for itself.

DW: And where do you see an opportunity for the JCSD to expand?

RL: Well, the idea now is to go regional. We think we can offer a service that is useful for other countries in the Caribbean. Our trust business will lend itself to supporting securities issued from a variety of jurisdictions.

DW: It has been declared that you will be departing the JSE on November 3 of this year. In terms of your successor to the two roles you currently handle, what would you recommend as the path to building on the legacy you leave behind?

RL: I’m not sure I’d call it a legacy, but I think that whoever takes over will do well if they can think strategically, have an accommodative mindset and work hard at implementation. I like to tell people that we’re in the getting-things-done business because it’s pointless trying to serve a financial service sector that’s being creative and innovative and driving forward while you’re standing still.