By Clinton McGregor
The Ministry of Finance is reporting that more than 1,200 clients who held billions of dollars in investments in the collapsed Stocks and Securities Limited (SSL) have received their money.
This was outlined in a statement Wednesday by Finance Minister Dr. Nigel Clarke.
In his statement, Dr. Clarke said he wanted to respond to a request from members of the public for a consolidated update provided to him by the Financial Services Commission, the Financial Investigation Division and the Temporary Manager.
According to Dr. Clarke, the investment firm held approximately $30 billion of client assets as part of SSL's off-balance sheet portfolio.
As part of the winding-up exercise which began in September last year, Dr. Clarke said the authorities are implementing measures to ensure that investors receive their money locked-up in SSL.
Between September and April 16, some 1,230 client accounts totalling approximately $15.37 billion of local equity and fixed income securities were transferred to accounts specified by these clients.
So far, J$665 million has been paid out to 338 clients.
According to the Finance Minister, a total of $16.035 billion or approximately 70 per cent of Jamaican dollar denominated assets held in SSL's off-balance sheet portfolio have now been transferred to clients.
Jamaican dollar denominated assets include Jamaican equity and fixed income securities and Jamaican dollar cash.
For the remaining Jamaican dollar securities, totalling $7.6 billion in value, he said the Temporary Manager is pursuing an agreement with a trust company for the en bloc transfer of these remaining Jamaican dollar assets which will be held by the trust company in custody for clients.
He added that SSL continues to process requests to transfer available cash balances.
Clients are required to submit their request including payment details to the Service Team.
Prior to April 11, 2024, the portfolio of international equity, fixed income and other securities held by SSL on behalf of clients, totalled approximately US$32.8 million.
As at April 11, 2024, 98 per cent of this international portfolio had been liquidated.
In relation to these international securities, Dr. Clarke said once the accounts have been reconciled, funds will be remitted directly to clients based on their instructions.
The Financial Investigation Division has reported that the fraudulent schemes are now estimated to have affected over 200 accounts and the extent of the fraud exceeds $3 billion in value.
None of the 200 accounts reportedly affected by the SSL fraud have recovered any part of what was lost due to the fraud.
The Finance Minister explained that under the Proceedings of Crime Act, the affected clients will have to await the outcome of the criminal trial to recover their money.
He, however, argued that affected clients can also pursue civil action to recover their investment in the failed institution.
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