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BOJ rescinds BCW subsidiary’s cambio licence

Published:Friday | April 7, 2017 | 12:00 AM

Currency market regulator Bank of Jamaica (BOJ) has revoked the cambio licence of Island Connect Jamaica Limited, a subsidiary of the investment firm BCW Capital, because the foreign exchange trader has not been offering the services for which it was established.

BCW Capital's Managing Director, Charles Chambers, confirmed that the licence was withdrawn due to inactivity, stemming from what he said was a change in the strategic focus of the parent company.

"BCW is not interested in operating a cambio going forward," Chambers said in emailed responses to Financial Gleaner queries as to whether it would seek to have the licence renewed.

BOJ requires cambio licensees to pay an initial licence fee of US$3,000 per application, which is renewable annually for a fee of US$2,000 per location.

Chambers said that revocation of the licence does not have a bearing on the operations of the parent company and that the cambio had not been incorporated into the undertakings of BCW Capital.

In a notice published last Friday, BOJ said the licence issued to Island Connect, which was authorised to operate at Knutsford Boulevard, New Kingston, was rescinded effective March 23, 2017.

BCW Capital started operations in 2012 after receiving securities dealers and pension fund investment manager licences from the Financial Services Commission. It had the backing of two leading conglomerates, Jamaica Broilers Group and Wisynco Group.

The company became a member dealer of the Jamaica Stock Exchange in December 2013, giving it authorisation to trade securities on the market as well as assist companies to list their securities on the exchange.