meta_id 3356451

On July 27, 2026, the Financial Services Commission (FSC) announced that it had launched a public consultation on proposed Standards of Sound Practice for Fit and Proper requirements running from July 8 - August 5, 2026. The consultation is applicable to regulated entities in Jamaica. The consultation seeks feedback on standards designed to establish criteria for assessing the fitness and propriety of individuals and entities operating within Jamaica's financial services sector. The standards apply to beneficial owners, controllers, directors, officers, senior managers, responsible officers, nominated officers, trustees, and shareholders with significant influence, as well as any natural person exercising significant influence over the governance or operations of a regulated entity. Where the applicant or licensee is an entity, the FSC will assess the natural persons connected to it. The FSC retains discretion to initiate or renew assessments on changes in ownership or control, appointment of new directors or officers, material adverse supervisory findings, evidence of misconduct, or developments within financial groups or outsourcing arrangements. Key provisions include: Core assessment criteria: Fitness and propriety is assessed against three core criteria: honesty, integrity, and reputation; competence and capability; and financial soundness. Honesty and integrity encompasses criminal convictions, adverse civil findings, regulatory sanctions, dismissals, bankruptcy, and candour with regulators. Competence and capability encompasses relevant qualifications, employment history, training, and understanding of the regulatory environment. Financial soundness encompasses personal solvency, outstanding judgments, source of wealth, and source of funds, assessed on a risk-based approach. Extended assessment criteria: The Standards introduce four extended criteria: independence and conflicts of interest, requiring disclosure and management of actual or potential conflicts; regulatory compliance and conduct history, covering sanctions, enforcement actions, and cooperation with regulators; ethical culture and accountability, covering promotion of compliance, fair treatment of customers, and acceptance of supervisory oversight; and group-wide and outsourcing considerations, requiring that persons exercising material influence over outsourced regulated activities also satisfy fit and proper standards. Obligations of financial service providers: The burden of demonstrating fitness and propriety rests with the sponsoring FSP or applicant, which must complete its own internal assessment prior to submission to the FSC, covering verification of qualifications, employment history, references, and probity checks. FSPs must maintain a written record of their internal assessment and provide it to the FSC on request. Repeated incomplete, inconsistent, or poor-quality submissions may be treated as a governance and compliance concern. Ongoing obligations: Persons in controlled functions are required to remain fit and proper on a continuous basis. FSPs must notify the FSC within 21 days of any material change affecting the fitness and propriety of a person in a controlled function, and must maintain ongoing internal monitoring of directors, officers, controllers, and other controlled function holders. Enforcement and sanctions: Where the FSC determines that a person is not, or no longer remains, fit and proper, enforcement measures available include refusal of application, suspension or removal from a controlled function, imposition of conditions or restrictions, administrative fines, public censure, revocation of licences, and referral to law enforcement. Enforcement is applied proportionately having regard to the nature and gravity of the misconduct, whether the breach was deliberate or negligent, duration and frequency, cooperation, and remedial action taken. Debarment, barring, or prohibition from specified roles may also be considered where the facts and applicable law permit. Procedural fairness: Where the FSC proposes an adverse fit and proper decision, the affected person will ordinarily be given an opportunity to be heard, with notice identifying the proposed action, its statutory basis, the material concerns, and the evidence relied upon. Where statute provides a right of appeal or review, the FSC will issue a decision letter identifying the decision, principal reasons, and applicable appeal route. Responses to the consultation may be sent by August 5, 2026 to Paul McAllister at respol@fscjamaica.org .