Junior Market cap lift imminent, laws for international financial services centre in Jamaica underway

 


Prime Minister Andrew Holness, speaking at the Jamaica Stock Exchange Conference in Kingston this week said that legislation raising the participating share capital limit for Junior Market companies from $500 million to $750 million will soon be ready for implementation.

“The legislation has been passed in the lower house and it goes to the Senate on Friday (January 24). I’m certain it will pass the Senate there, and then it goes to the Governor-General for his assent and then it becomes law. So, within a matter of days, that will be the new share capital limit,” he noted.

Currently, the Junior Market hass 48 listed companies with market capitalisation of $148.5 billion.

The PM also stated that laws to o establish Jamaica as an international financial services centre will also soon be ready.

He said the Government has made substantial progress by passing several key legislation, including the Partnership General Act and the Trust and Corporate Services Providers Act.

The final legislation required is the Limited Liabilities Company Act, which has been refined to ensure it meets global expectations.

“This Act aims to provide a more business-friendly framework than the Companies Act,” the Prime Minister explained.

Jamaica wants to be on the same page as other offshore financial centres in the Caribbean which include The Bahamas and the Cayman Islands, Bermuda and the British Virgin Islands.

The offshore financial sector is a big earner in the Caribbean. In Saint Kitts and Nevis earnings from the sector are ten per cent of GDP.

The Bahamas and Barbados have offshore sectors which equate to 72 times and 11 times the size of their respective economies. Overall financial sector assets in the region stand at 170 per cent of GDP. In the BVI which leads, fees collected account for 55 per cent of government revenue,

PM Holness stressed that pending legislative measures are designed to create a modern business environment that supports both local and foreign enterprises.

“This legislative suite will offer new business structures, attract investments, and solidify Jamaica’s place as an international business hub,” he said.

“It is our intention to ensure that we complete the legislative framework… as we stand on the brink of transforming Jamaica into an international financial services powerhouse,” he said, calling on all stakeholders in Jamaica’s financial sector to collaborate in realising this vision.

The Prime Minister was speaking at the Jamaica Stock Exchange Investments & Capital Markets Conference held at The Jamaica Pegasus hotel in New Kingston on Tuesday (January 21).

He noted that while Jamaica already has a robust financial sector, further modernisation is essential to meet international standards.

Information source: JIS

Photo credit: PM Andrew Holness by caribbeantoday.com

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