SSL moving to satisfy FSC requests – Harding
Zachary Harding, Group CEO of Stocks and Securities Limited
Zachary Harding, Group CEO of Stocks and Securities Limited (SSL), said the company continues to respond to the Financial Services Commission (FSC) in relation to its directives about client funds.
The FSC communicated new requests to the company via a letter to chairman Jeffrey Cobham in October, requests to which Harding said the company has been responsive.
One area of concern was $1.1 billion in un-invested client funds.
SSL has been restricted by the FSC from accepting public funds for some areas of business, but not all, Harding explained.
Harding said the company has now “placed these un-invested funds into bonds, securities and private equity deals.”
“From the existing amount of un-invested cash, we have completed the placement of approximately 80 per cent into such opportunities, approved by our clients.”
Harding also asserted that board policies concerning client funds have been updated.
He stated that for managed portfolios, the company is not accepting new funds, but added: "We are definitely accepting funds into brokerage, investments and private equity deals as we are still fully allowed to do.”
He said SSL has “followed all the FSC directives regarding managed portfolios and we continue, as we are allowed, to accept funds from clients into brokerage, investments and private equity deals.”
“We continue to work closely with the FSC and they have expressed great satisfaction with the actions and responses from SSL so far.”
SSL Ventures, an associated company, was in 2019 the subject of a voluntary suspension of trading and later, a mandatory suspension of trading.
Earlier this year, Harding stated that all audits are up to date and unqualified with the venture capital subsidiary back to trading on the stock exchange.
Concerning the FSC, he said: “To date, we have completed the necessary actions within the required timelines and continue to respond to the outstanding ones in a timely manner before they become due. The directives issued by the FSC have different timelines. We have responded within all the timelines thus far."
For SSL, an independent Operations Audit was completed in January for the on and off-balance sheet assets.
Harding noted: “Coming out of the audit, we had some reporting adjustments that needed to be done and these have now been successfully completed.”