meta_id 3356448

On July 27, 2026, the Financial Services Commission (FSC) released a public consultation on proposed standards of sound practice for corporate governance applicable to regulated entities in Jamaica. The FSC's consultation introduces comprehensive corporate governance standards designed to establish baseline requirements for regulated financial services entities. The proposed standards address governance structures, board composition, risk management frameworks, and accountability mechanisms for entities operating under FSC supervision. The standards apply to the Governing Bodies of all regulated entities across the insurance, pension, securities, and trust and corporate services sectors, with proportional application based on the size, complexity, structure, nature of business, and risk profile of each entity. Where a regulated entity forms part of a group, it may rely on the group's corporate governance framework provided that framework meets Jamaican legal requirements; where gaps are identified, a tailored framework must be developed. Key provisions include: Corporate governance framework: Regulated entities must develop, enforce, and uphold a corporate governance framework ensuring effective and responsible management oversight while safeguarding stakeholder interests. The Governing Body must be constituted with a sufficient number of individuals possessing diverse skills, experience, and expertise, supported by documented internal governance practices, clearly defined responsibilities, succession plans, and nomination, appointment, and termination procedures for Directors and Senior Management. Sub-committees may be established to execute delegated functions, provided each operates under a defined charter and that the Governing Body retains ultimate oversight and accountability, including in respect of internal control, internal audit, risk management, and actuarial matters where applicable. Duties of the governing body and individual directors: The Governing Body must collectively oversee the entity's strategic direction, regulatory compliance, and risk management, and must assess its own composition, performance, and the effectiveness of risk management and internal control systems at least annually. Individual Directors are required to act with integrity, care, and diligence, maintain an up-to-date understanding of the entity's business, prioritise the interests of the entity and its stakeholders, and safeguard their independence from undue influence by Senior Management. Directors must notify the relevant regulator within seven days of becoming aware of any substantive issues that could materially affect the entity. Conflicts of interest and code of conduct: Regulated entities must maintain a formal conflicts of interest policy requiring declaration, avoidance, and recusal obligations for Directors and Senior Management. Directors must provide written annual declarations confirming all conflicts disclosed during the year. The Governing Body must adhere to a Code of Conduct grounded in the principles of selflessness, integrity, objectivity, accountability, openness, honesty, and leadership. Remuneration, reporting, and transparency: The Governing Body must establish a documented remuneration policy applicable to Directors, Senior Management, employees in Control Functions, and other personnel capable of materially influencing the entity's risk exposure, ensuring remuneration does not incentivise excessive or inappropriate risk-taking. Comprehensive financial and regulatory reporting processes must be maintained, supported by audit and compliance committees or comparable bodies. The Governing Body must convene at least annually, distribute agendas in advance, and maintain detailed minutes recording attendance, decisions, conflicts declared, and dissensions. Supervisory review and enforcement: The FSC will assess the adequacy and effectiveness of each entity's corporate governance framework, applying supervisory judgment based on the entity's size and risk profile. Entities that consider a specific standard inapplicable must provide full justification to the FSC. Non-compliance will be subject to the FSC's enforcement policies and procedures. The effective date of the Standards is to be confirmed. Responses to the consultation should be sent by August 6, 2026 to Paul McAllister at respol@fscjamaica.org .