THE Financial Services Commission (FSC) had, in October 2013, issued directions to Stocks and Securities Ltd (SSL) to stop conducting all aspects of its securities business unless the company received approval from the regulator, a letter seen by the Jamaica Observer has shown.
The letter, signed by then FSC Executive Director Janice Holness, was addressed to Mark Croskery who, at the time, was the firm's president and CEO.
The directions were issued after an internal audit of the company which is now at the centre of a massive fraud so far estimated to be more than $3 billion.
At the time, the FSC directed SSL to:
(a) refrain from accepting new securities business;
(b) refrain from dealing in securities;
(c) refrain from granting credit to related parties or other persons;
(d) refrain from soliciting business from members of the public; and
(e) provide all information, documents, records, access, other assistance and cooperation to any special auditor that is duly appointed by the commission.
The regulator had said it was issuing the directions "in the interest of the customers, potential customers, and creditors of Stocks and Securities Limited (the licensee) and for the purpose of safeguarding the licensees' assets".
The FSC had also advised that any breach of the directions would result in the commission moving to revoke SSL's securities dealer's licence. However, it was not clear up to press time Monday whether the company obeyed the directions or if the regulator had to take action against the firm.
- We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper; email addresses will not be published.
- Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
- We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
- Please do not write in block capitals since this makes your comment hard to read.
- Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: email@example.com.
- If readers wish to report offensive comments, suggest a correction or share a story then please email: firstname.lastname@example.org.