FSC head Everton McFarlane resigns

Everton McFarlane has resigned as Executive Director of the Financial Services Commission (FSC) just days after The Gleaner exposed an FSC report that questioned the regulator's oversight of fraud-hit Stocks and Securities Limited (SSL)

The Bank of Jamaica's Chief Prudential Officer, Major Keron Burrell, will act in the position.

The FSC regulates investment houses, while the BoJ oversees deposit-taking institutions, such as commercial banks. 

Finance Minister Dr Nigel Clarke announced Thursday that he has accepted McFarlane's resignation. It will take effect on January 31, but he goes on leave on January 20. 

McFarlane took up the post in August 2017. 

The FSC has been under scrutiny after The Gleaner on Tuesday revealed an internal report in which FSC staff flagged SSL as a "problem institution" that operated a "culture of non-compliance and mismanagement of client funds". 

That report gave an assessment of SSL for a period of almost six years up to February 2017. 

But at a press conference on Wednesday, McFarlane dodged a series of questions on what happened after that date, claiming confidentiality reasons. 

“We are aware that there are a number of questions that are of public concern. Questions, for instance, relating to the FSC's past actions. What we knew, when we knew it, what we did, but… our ability to answer certain questions at this point in time is constrained,” he said, seeking to preempt journalists.  

McFarlane also said the FSC found no reason to suspend or revoke the SSL's licence.

Sprint legend Usain Bolt is among 40 SSL clients affected by the fraud. 

Bolt has given Stocks and Securities Limited 10 days from January 16 to pay over approximately $2 billion that he said was in his account up to October 2022.  

SSL reported the $3-billion fraud to the FSC on January 10, after taking a statement from an implicated ex-employee on January 7. The former wealth advisor has not been charged.  

- Jovan Johnson

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