The FSC has lost control of fraud hit investment firm Stocks and Securities Limited
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King's Counsel Caroline Hay, who represents the SSL appointed trustee, Caydion Campbell
By Nakinskie Robinson
The Financial Services Commission (FSC) says it will remain actively involved the winding up process in the multibillion-dollar fraud tainted firm, Stocks and Securities Limited (SSL).
This follows Thursday's ruling by the Supreme Court that government regulator no longer has control of SSL.
The written ruling, handed down by Justice David Batts, determined that SSL's appointed trustee, Caydion Campbell, has full control of the fraud-hit firm, under the supervision of the court.
Reacting to the ruling,the FSC said it will ensure that the winding up process is conducted transparently and in the best interests of all stakeholders.
It said the decision validates its assessment and regulatory actions that it would have carried out up to this point.
Thursday's judgment represents a big blow to the FSC's efforts to cauterise the situation at SSL.
The FSC last year sued SSL and Mr. Campbell, claiming that his appointment was in breach of directives and an attempt to frustrate the investigation of the multibillion-dollar fraud.
But the court's ruling indicates that Mr. Campbell's appointment was valid.
The Supreme Court says there is to be a stay of all pending or other proceedings against SSL and no suit action or other proceedings including criminal proceedings, shall be proceeded with or commenced against SSL unless the court's permission is obtained.
The FSC, which regulates investment houses, had argued that SSL's solvency declaration was flawed because it did not accurately represent the company's financial status and did not account for the fraud reported at the agency on January 10, 2023.
SSL directors appointed Mr. Campbell as trustee on January 16, 2023 to pursue a reorganisation of the company through voluntary winding up under the Companies Act.
The FSC filed a lawsuit on January 25, 2023, after becoming aware of the move.
It took temporary management of SSL on January 17, 2023.
A follow-up court date is scheduled for September 26, where Mr. Campbell will present a detailed report and any additional applications will be considered.
Meanwhile, Executive Director of the FSC, Lieutenant Colonel Keron Burrell, said the FSC respects the Court's decision, however, the Commission is currently reviewing the judgment and assessing the available options, including potential further applications to the Court in furtherance of its mandate as regulator.
He said the FSC will continue to work to safeguard the interests of SSL's clients and the broader financial system.
Lieutenant Colonel Burrell added that the Commission continues its collaboration with law enforcement agencies to ensure that any and all acts of impropriety at SSL are thoroughly investigated and the perpetrators held to account to the full extent of the law.
But King's Counsel Caroline Hay, who represents the SSL appointed trustee, Caydion Campbell, has insisted it is important that legislators understand the framework under which they operate.
Speaking Thursday on Radio Jamaica's Hotline, the attorney reasoned that the regulators took steps under the Financial Services Commission Act, but did so "in an environment where there was other legislation that gave other rights to other persons".
"So regulators really have to be clear that when they take acts in the public interest or otherwise, that they do so lawfully and that they respect and understand the application of other statutes, because a failure to do so can be the death knell of a company or the wiping away of people's years of investment, sweat equity and toil. We don't know at this point what could have been done to save this company had this action not been commenced," she argued.
She said the ruling now puts her client in a position to properly carry out his role as the appointed trustee.
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