Mini Case: The Stocks & Securities Limited (SSL) scandal) Revised versions of The Loop article published on January 17, 2023, and February 2, 2023

Usain Bolt along with other investors lost considerable wealth because of fraud where their monies were to be managed and invested by investment firm Stocks & Securities Limited (SSL). Following a preliminary investigation to catch the perpetrator, according to investigators, a former employee of 25 years at SSL might be responsible for the fraud.

After the matter came to light, the Financial Services Commission of Jamaica (FSC) overtook the existing management of SSL. Additionally, Jamaican Finance Minister, Dr. Nigel Clarke revealed that the government had contacted the United States Federal Bureau of Investigation (FBI). According to the finance minister, the Jamaican government also sought help from other international partners to help investigate the massive scam.

SSL has indicated that the fraud has not affected most clients, but the Board's disciplinary panel was quick to dismiss the concerned employee on grounds of "negligence and gross incompetence." The events that have unfolded over the last few weeks have not just put adverse consequences for the affected clients, but also put a question on the integrity of the other hard-working SSL staff.  

QUESTION 1 [CLO 1]

Outline the responsible parties for setting and upholding the ethical and corporate culture of a company, and their duties in this regard.                                 QUESTION 2 [CLO 3]

Describe the reasons SSL's corporate structure potentially contributed to this ethical breach only being discovered years after the initial fraud.

QUESTION 3 [CLOs 3, 4] 

Based on your understanding of the Financial Services Commission Act of 2001, the Sarbanes-Oxley Act of 2002, the Private Sector Organization of Jamaica (PSOJ) Corporate Governance Code of 2016, the NACD and the OECD Corporate Governance principles, discuss measures the SSL Board could have taken to ensure this incident never occurred. 

QUESTION 4 [CLO 5]

State three rights of a consumer and discuss two consumer protection laws which serve to protect consumer rights in Jamaica (locally) or internationally.