The Editor, Sir:
I cannot understand the rationale for the hype stirring in the Financial Services Commission (FSC) surrounding the so-called alternative investment schemes. The FSC is a body which regulates the financial sector. They have no competition in the services they offer. So why are they advertising so heavily? Do they have customers from the general public who pay them for their services?
Their ads inform us of their "promoting integrity in the financial sector" and warn us to "be careful where you put your money". This is a very hypocritical stance by the FSC directed straight at the "alternative investment schemes", which are promising higher returns than average for investors who 'save' with them.
The FSC will argue that they are protecting Jamaicans' interests as these schemes are unregulated and unprotected. They warn, and rightly so, that investors must determine risks associated with investment, that investors can lose their money if the investments club goes bust, etc.
losses
This is clearly in retaliation, to investment clubs. But what, then, of the tens of thousands of Jamaicans investing in the stock market, mutual funds and unit trusts? Think about it, how many Jamaicans have made losses totalling hundreds of millions, if not billions, in these regulated markets? Why hasn't the FSC been warning us of the risks with these markets and established financial entities?
Investors stand to lose as much money with regulated entities as we do with unregulated 'houses' and 'clubs'. Stocks, bonds and unit trusts are uninsured under the JDIC. In the stock market, if the company invested in goes bust (a la Dyoll) or fails to submit financial reports and is delisted (a la Pulse some years ago) we lose our money as well. I think investors who pump in millions of their own money are savvy enough to know the chances and risks associated with above average investments.
This media blitz by the FSC is really uncalled for and they should spend their money a little more (world) wisely.
I am, etc.,
STEFAN HEMMINGS
kcheadboy96_97@yahoo.com
Kingston 8
Via Go-Jamaica
