Jamaica Financial Services Commission launches consultation on corporate governance standards for all regulated entities

The Jamaica Financial Services Commission has proposed corporate governance standards for all regulated entities, including those in the pensions, insurance, securities, and trust and corporate services provider sectors. The standards would require each entity to maintain a governance framework proportionate to its size, complexity, structure, business and risk profile, with its governing body accountable for strategy, regulatory compliance, risk management and internal controls. Governing bodies would have to document oversight and management responsibilities, establish independence criteria, manage conflicts of interest, adopt remuneration policies and oversee financial and regulatory reporting. They would also be required to conduct annual assessments of strategy, board composition and performance, risk management and internal controls, and notify relevant regulators within seven days of becoming aware of substantive issues that could materially affect the entity. Delegation or outsourcing would not reduce the governing body’s accountability, while entities relying on group frameworks would have to address gaps against Jamaican requirements. Entities would be required to demonstrate the adequacy and effectiveness of their frameworks when requested and justify any proposed proportionate disapplication of a standard. Noncompliance would be subject to the Commission’s enforcement policies and legislative powers, while the effective date remains to be determined.