OPPOSITION Senator Peter Bunting has called attention to catch-all provisions in the regulations to the 2021 Trust and Cooperate Services Providers (Licensing and Operations) law, which he cautions could see the Financial Services Commission (FSC) being in breach of the law in some instances.

Bunting told the senate on Friday that some clauses in the 2022 regulations relegate oversight which rightfully belongs to Parliament, to the FSC.He explained that in addition to relevant documents to be submitted in the application for licences, the regulations also authorise the FSC to request any other document specified in the guidelines without Parliamentary approval.“While the original Act requires affirmative resolution by Parliament, what you’re doing with this is that it will require it [affirmative resolution] once. Because having put this clause in the first affirmative resolution, it means going forward it will be entirely left to the discretion and determination of the commission, without parliamentary approval. That doesn’t seem to me to be faithful to the intention of the law which was originally passed to require these regulations to come back to Parliament by affirmative resolution for approval,” Bunting said.He noted that the same concern applies to the particulars related to the register of beneficial owners.

“Again, after setting out what seems to be very reasonable requirements [it says] such other information as may be required by the commission. So again we give the commission powers that would now be outside of the oversight of Parliament,” he stated, arguing that these catch-all provisions which allow the FSC to make further regulations without approval, may in fact be technically unlawful.Bunting also questioned whether the regulations would apply to people and entities such as attorneys, the Jamaica Stock Exchange, and the Companies Office of Jamaica.

“If we’re incorporating this domestically, I hope we are doing it thoroughly and covering all the bases,” he said.He stressed that the regulations have the overall support of the Opposition, but urged that the concerns highlighted be considered.Parliament approved the International Corporate and Trust Services Providers (Change of Name and Amendment) Act in November 2021, amending the International Corporate and Trust Services Providers Act which was passed in August 2017.The change removed the distinction between international and domestic trust and corporate services providers by bringing domestic services providers under the ambit of the law, and extended the regulatory and licensing regime to be established by the trust and services providers.The legislation regulates these providers to prevent the misuse of business arrangements for illicit means, such as financing terrorism and the proliferation of weapons of mass destruction, and money laundering.