And then there were 13. Another firm joins the stockbrokerage community:
JN FUND Managers Limited (JNFM), which operates a securities dealership, has got a licence from the Jamaica Stock Exchange and can now include brokerage services in its product line-up, the company confirmed this week.
It means that 13 brokerage houses now hold licences to buy and sell shares on the JSE on behalf of clients. Most of the brokerages are subsidiaries of larger financial groups.
JNFM, a member of the JN Financial Group, already offers wealth, pension fund management, asset and investment management services for clients.
“JNFM received a member dealer’s licence from the JSE in February,” said JNFM Managing Director Allan Lewis.
Lewis indicated that the new brokerage line of business would leverage the brand’s recognition with a view to converting that into business. JN Financial is itself a division of JN Group, which was restructured after it received a commercial banking licence.
Demand for services
“JN Group is one of the largest and most known providers of financial services in Jamaica and the diaspora. And JNFM, as part of that group will seek to fulfil the needs of our clients; and the brokerage licence is part of us filling that demand for services for our clients,” Lewis said.
The other licensed brokers are Barita Investments Limited, BCW Capital, GE Capital Management Limited, JMMB Securities Limited, JN Fund Managers, M/VL Stockbrokers Limited, Mayberry Investments Limited, NCB Capital Markets Limited, Proven Wealth Limited, Sagicor Investments Jamaica Limited, Scotia Investments Jamaica Limited, Stocks and Securities Limited and Victoria Mutual Wealth Management Limited.
Up to Thursday, JNFM’s name was still absent from the list of brokers posted on the JSE’s website.
JSE Deputy General Manager Robin Levy said there are currently no limits to the number of member dealers.
“JNFM has a permanent licence to trade securities offered,” Levy added.
The first indication that JNFM had joined the stockbrokerage community came from a picture posted online by the JSE showing JNFM personnel engaged in training workshops related to JSE Rule — Appendix 12, which pertains to reporting of financial information on a timely basis.
The JSE, in its member dealer application guide booklet, indicates that a permanent licence allows brokers permanent trading and settlement rights to all equities and fixed-income products.
The JSE was demutualised in 2008, resulting in a removal of the requirement for brokers to own shares in the JSE. The rights to trade are now governed by trading licences issued by the exchange.
The application for membership involves quantitative and qualitative criteria, including satisfying the JSE that the applicant’s executives and staff are fit and proper to carry on a stockbroking business, as well as the financial strength of the firm.