To reduce the risk of staff contracting COVID-19 from cash collected, the Financial Services Commission (FSC), which annually surpasses $1 billion in fee collections, has notified the public that raw currency will no longer be collected. Individuals and companies paying fees are being asked to use cheques instead.

David Geddes, director of Stakeholder Engagement, Communication & International Relations, told the Jamaica Observer that its licensees pay by direct deposit and that those using cash are usually individuals paying fees for fit and proper assessments.

The FSC – from a review of its annual reports – collects over $1 billion in fees from the companies which it supervises which include pension fund managers, securities dealers and insurance companies. Supervision is mandated under relevant Jamaican laws. At last count, over 600 entities operating in the finance sector fall under the Commission’s supervision.

According to the latest Government of Jamaica Public Bodies report, the FSC reported audited revenue of $1.31 billion at year-end March 2020, down from $1.4 billion at March 2019. Projections in collections for the year ending March 2021 are $1.2 billion.

Net surplus, after expenses were $168.64 million at March 2020, up from $94.74 million at March 2019. Net surplus projections for March 2022 are $15.68 million.

Geddes told the Business Observer, “Our licensees don’t pay in cash but individuals come in and do. The licensees pay by direct deposit. And that’s the bulk of our funding. Cash is negligible. It is individuals who pay in cash and it’s not a significant segment of our fees.”

Licensees also pay in cash for fit and proper assessments, so the notice also applies to them.

The FSC is self-funded. The body has wide-ranging powers to supervise, investigate and sanction entities falling under its jurisdiction.

Supervisory practices highlight prudential supervision, focusing on solvency, the quality of internal controls, risk management and corporate governance within regulated institutions.

In the 2021 public bodies report, the FSC said it is planning to restructure its operations, improve its supervisory capabilities, and facilitate the expansion of the financial markets while ensuring the safety and soundness of regulated entities and greater consumer protection.

The government agency has a staff complement of 127.