Richard Byles (left), president and CEO of Life of Jamaica, and Emil George, new chairman of the Financial Services Commission, are seen in discussion at the insurance company's High Flyers luncheon, Jamaica Pegasus hotel in New Kingston, April 22. - Rudolph Brown/Chief Photographer

The Financial Services Commission, regulator of the pension fund industry, has revised the sector's value at $150 billion, based on the applications from 537 superannuation funds and retirement schemes seeking registration.

But the regulator remains well behind in its licensing project, saying that much of the delay was linked to incomplete applications.

Life of Jamaica, which is considered the leader in pension fund administration, said its pool has risen from $41.8 billion to $50.7 billion at the end of 2007, spread across ten 'self-directed' funds, and eight pooled funds, up from seven.

Last year, the company created PIF International Equity Fund, which invests in equities.

"This fund has been developed to allow pension clients to invest in international equities in approved jurisdictions, within the guidelines of the pensions regulation," said president and CEO Richard Byles, quoted in the company's 2007 annual report.

A year ago, the pension fund sector was valued at $132 billion, an estimate then based on information supplied by 520 applicants for licensing.

Four approved

New FSC chairman Emil George said last month that only four pension funds of the 520 had been approved.

In a more current update, the FSC said just one-fifth of the schemes, or 115 of the 537 applicants seeking its endorsement, had the requisite information as laid out in the pension regulations that came into force in 2005.

The laws also require pension fund managers and trustees to be registered with the FSC.

Of the 1,948 trustee applications, 1,244 or 64 per cent were in order.

The FSC has completed 1,115 of the fit and proper assessment for those trustees, but says their certificates of registration can only be issued after the associated pension plans are registered.

Sixty three applications were also submitted for investment managers and administrators, 46 of which were approved while two are pending.

Of the remaining 15 applications, four required additional documentation, 10 were returned, and one application was refused.

Assisted by a provision in the law, pension funds and retirement schemes are allowed to continue operating until their licensing is approved or denied, but only if they were operational before March 1, 2005, when the regulations took effect, and provided that their application for registration and licensing was received at the deadline date of September 29, 2006.

sabrina.gordon@gleanerjm.com