CREDIT UNION FIRST
C&WJCCUL to list deferred shares on the JSEFriday, July 10, 2020
Community & Workers C o- operative Credit Union of Jamaica (C&WJCCUL) will be shortlisting on the Jamaica Stock Exchange $900 million deferred shares owned by its members.
The move, a first for any credit union in Jamaica, is aimed at identifying a consistent source of funding, the company said in a news release yesterday.
Each member will have until July 16 to identify a broker and sign up for a number at Jamaica Central Securities Depository , the credit union explained, adding the initiative is being guided by MoneyMasters Limited.
The release reports Carlton Barclay, CEO of C&WJCCUL, as saying that if it were to qualify as capital, the funds would have to meet certain requirements, one of which is that no withdrawal can be done at short notice.
“C&WJCCUL has used deferred shares in the past to bolster its capital requirement. However, the shareholders — with the greatest of intent to keep their funds for the mandated five years — would withdraw amounts to cover unforeseen or unexpected expenses. However, such pay-outs would negatively affect the credit union's capital amount,” the release quotes Barclay.
Against that background, C&WJCCUL is seeking to establish a fund which will ensure that the amount put in by each member is maintained over the life of the investment and no withdrawals can be made during that period.
“Listing the shares on the Jamaica Stock Exchange provides the protection to C&WJCCUL and allows each member shareholder to recoup or access the funds by selling the shares at any time through an established broker,” said Barclay.
However, he noted that anyone wishing to trade shares would need a brokerage account to facilitate the transfer of shares between purchaser and vendor as the shares cannot be traded otherwise.
According to Barclay, the shortlisting on the Jamaica Stock Exchange will benefit each member shareholder with excellent returns on a long-term investment, with the possibility of trading the shares at a profit at any time.
He explained that the innovation is part of his credit union's vision to be the financial service provider of choice for stakeholders locally or throughout the Diaspora.
Barclay also noted that this fund would ensure that the credit union remains relevant through technology, as well as expanded products and services, together with superior customer service.
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