FSC $500m transfer draws opposition criticism over proposed fee increases

The Opposition is pressing the Government for clearer answers after $500 million was taken from the Financial Services Commission, even as the regulator moves to increase fees charged to insurance companies and other supervised entities.

Finance Minister Fayval Williams has defended the withdrawal, saying it followed an assessment of the FSC’s finances and would not damage the commission’s work or long-term stability. She said self-financing public bodies with surplus funds may be required to transfer excess reserves to help meet government revenue needs, and that support would be provided if the FSC later required it.

Opposition spokesman on finance Julian Robinson rejected that explanation, arguing that the position clashes with what FSC executive director Lieutenant Colonel C. Karen Burrell told Parliament about the effect of the transfer. Robinson said Burrell had indicated the $500 million removal placed pressure on the commission and contributed to the need for higher fees.

Robinson warned that increased charges on insurers would likely be passed on to policyholders, adding to costs for Jamaicans insuring homes, vehicles and other property. He said those increases could come on top of hurricane-related pressures and rising reinsurance costs.

The opposition spokesman also linked the FSC issue to a wider concern about Government cash flow. He pointed to withdrawals from the National Housing Trust and HEART Trust, saying state entities were being leaned on because tax revenues were not moving fast enough while public expenses remained fixed.

Robinson said the People’s National Party is not opposed in principle to taxing Airbnb operators, but criticised the Government’s approach, saying the measure was not properly presented or discussed with the sector before being added to tax changes.