Former FSC chairs mum on SSL ‘problem’ years

Former chairman of the Financial Services Commission (FSC) Jacqueline Stewart Lechler is mum on her stewardship, which covered much of the period following an internal report that flagged the fraud-hit Stocks and Securities (SSL) as a “problem institution”.

Stewart Lechler, who is the managing director of Stewart's Automotive Group, was appointed in July 2017 by then Finance Minister Audley Shaw and retained when Dr Nigel Clarke took over the portfolio in 2018.

She replaced commercial lawyer and businessman Howard Mitchell, who served from April 2016 until his resignation in June 2017. He has directed queries to the FSC, noting that commissioners sign declarations of secrecy that apply even after their exit. 

According to an internal FSC report, the watchdog conducted an on-site examination of SSL between June and September 2016, after which it threatened SSL with a licence suspension because of a range of breaches and other problems.

The February 2017 report characterised SSL as a “problem institution” that operated “a culture of non-compliance and mismanagement of client funds” for almost six years up to that time.

Based on the report brought to light by The Gleaner on Tuesday, questions have been mounting about FSC's oversight and whether SSL had addressed the issues by an August 2017 deadline.

Stewart Lechler said she could not speak without advice from FSC, arguing that she was no longer at the regulator that oversees investment houses and whose role was questioned during the Ponzi-scheme era of Olint and Cash Plus.

“To be honest, I am unable to comment 'cause I don't have any data in front of me. Forgive me. I am at home. But I thank you for calling me,” Stewart Lechler told The Gleaner on Wednesday.

A day later, she again declined to comment, noting that she needed legal guidance.

“Without legal representation, I would certainly not want to put a wrong foot, whether forward or backward,” said the businesswoman, whose stint at the FSC ended in September 2021.

She was replaced by John Robinson, a retired senior deputy governor of the Bank of Jamaica. He has not made any public comments since the SSL fraud scandal became public on January 12.

He is reportedly due to meet with the finance minister today.

It also remains unclear whether any FSC board reported challenges with SSL to the portfolio minister.

Everton McFarlane, who joined the FSC as executive director in August 2017, just weeks after Stewart Lechler took over as chairman, has resigned from the top post, effective January 31. He goes on leave today.

Investment firm SSL has reported a $3-billion fraud that has impacted more than 30 clients, including sports icon Usain Bolt.

The Financial Investigations Division said that “questionable transactions” stretch back at least a decade.