The Jamaica Stock Exchange (JSE) is reporting heightened compliance rates in the equities market during 2020.

JSE managing director, Marlene Street-Forrest, made the revelation as she addressed the equities regulator’ 17th installation of its Best Practices Awards ceremony, which was held last Wednesday (December 1) for the second consecutive year under COVID-19 protocols at its 38A Harbour Street headquarters.

This hybrid format allowed participants online to view the event.

Street-Forrest pointed out that the JSE’s Regulatory Market and Oversight Division (RMOD) reported that although many listed companies experienced several challenges in 2020, there were heightened compliance rates in a number of areas.

These included an improvement in Main and Junior Markets’ listed companies timely filing compliance rate for unaudited financial statements, which increased from 95 per cent and 93 per cent in 2019 to 96 per cent and 97 per cent in 2020.

There was also an improvement in Main and Junior Markets’ listed companies timely filing compliance rate for audited financial statements. The compliance rate increased from 63 per cent and 74 per cent in 2019 to 85 per cent and 92 per cent in 2020.

In addition, the JSE boss also pointed to an improvement in Main and Junior Markets’ listed companies timely filing compliance rate for annual reports, which increased from 74 per cent and 63 per cent in 2019 to 80 per cent and 76 per cent in 2020 as well as an improvement in the Junior Market’s listed companies timely filing compliance rate for trade notices, which increased from 76 per cent in 2019 to 79 per cent in 2020.

100% compliance rate by listed companies

To cap it off, Street-Forrest boasted that, “there was a 100 per cent compliance rate by listed companies in submitting preliminary disclosures to the market on the impact of COVID-19 on their operations.”

Street Forrest emphasised that Environmental Social & Governance (ESG) and Corporate Social Responsibility principles and practices are not fads, whilst encouraging listed companies to entrench these programmes within the organisations.

She highlighted that these principles are critical to the survival and development of companies. According to Street-Forrest, “the pandemic has now called into focus, the imperative for us as best practice advocates, to address and be very intentional with infusing ESG into our operations, without which, the very essence of profitability for which we all strive, is compromised.”

Chairman of the Best Practices Awards, Professor Neville Ying, in his message, explained, ”The JSE’s Best Practices Awards Committee working in a COVID-19 condition was able to cope much better because of last year’s experience for the 2019 Awards”.

He noted that the COVID-19 employment impact, with over 300,000 jobs lost, significant decline in the tourism sector, mental depression of the citizens and displaced families.

However, Professor Ying was quick to mention that ”with the increase in remittance by 20 per cent over last year, diaspora support for tourism, and companies’ innovation and creativity to keep the economy on a growth path, it was the best of times.”

The 17th awards saw multiple repeat winners in various categories. GraceKennedy Limited captured the prestigious Governor-General’s Award in the Main Market, while in the Junior Market category repeat winner Honey Bun shared the top prize with Lasco Financial Services Limited.

The coveted Chairman’s Award for overall Member Dealers’ winner went to NCB Capital Markets Limited.

Awards categories and assessment

The JSE’s Best Practices Awards recognise three distinct groups of winners as follows: JSE Member Dealers (Stockbrokers), Main Market and Junior Market listed companies.

JSE’s Member Dealers
Members are evaluated in four areas: (1) Revenue Generation and Market Activity, (2) Website, (3) Expansion of Investor Base and (4) Expansion of Listed Companies’ Base. For this group, there is one overall winner.

Listed companies
Listed companies are evaluated in five (5) categories: (1) Annual Report, (2) Best Performing Company, (3) Corporate Disclosure and Investor Relations, (4) Website and (5) Corporate Governance (this award is in collaboration with the PSOJ). There is one overall winner for the Junior Market and one overall winner for the Main Market.

These evaluations are done by collating the results of surveys, questionnaires and evidence from records held at the JSE. The information and results are then examined and discussed by a 22-member committee, comprising top business and academic professionals across varying sectors.

Member dealers’ awardees

Revenue Generation & Market Activity: In this category, the JSE recognises member dealers that during the year traded the most value on the exchange and participated in the JSE’s programmes.

Winner – NCB Capital Markets Limited
1st runner-up – Sagicor Investments Jamaica Limited
2nd runner-up – Barita Investments Limited

Investor Relations: This category recognises the member dealer that consistently exceeds customers’ expectations by providing excellent customer service.

Winner – GK Capital Management Limited
1st Runner Up – Proven Wealth Limited
2nd Runner Up – Barita Investments Limited

Website (member dealer): This category is given to encourage member dealers to raise the quality and efficiency of the dissemination of information to the investing public via their website.

Winner – JMMB Securities Limited
1st Runner Up – Sagicor Investments Jamaica Limited
2nd Runners Up (Joint winners): Mayberry Investments Limited and Barita Investments Limited

Expansion of Investors & Listed Companies Base: This category recognises the member dealer that has increased the number of clients in the Jamaica Central Securities Depository (JCSD), JSE’s main subsidiary and has listed the most companies within 2020.

Winner – NCB Capital Markets Limited
1st Runner Up – Sagicor Investments Jamaica Limited
2nd Runner Up – JMMB Securities Limited

Overall winner went to NCB Capital Markets Limited, which received the Chairman’s Award.

Listed Companies awardees (for the Junior & Main markets)

Annual Report award: This award is given to encourage publicly listed companies to produce clearer, more reader-friendly annual reports and to provide greater insight into the companies’ financial affairs, governance practices and business activities.

Junior Market
Winner – Lasco Financial Services Limited
1st Runner Up – Lasco Manufacturing Limited
2nd Runner Up – Lasco Distributors Limited

Main Market:
Winner – GraceKennedy Limited
1st Runner Up – JMMB Group Limited
2nd Runner Up – NCB Financial Group Limited

Best-Performing Company: This award seeks to identify and recognise outstanding performance by listed companies in enhancing shareholders’ value in the areas of capital efficiency, profitability, and direct return on shareholdings.

Junior Market
Winner – Cargo Handlers Limited (third consecutive year)
1st Runner Up – Honey Bun (1982) Limited
2nd Runners Up – Lasco Distributors Limited & ISP Financial Services Limited (Joint winners)

Main Market
Winner: Carreras Limited (3rd year running)
1st Runner Up – Pulse Investments Limited

Corporate Disclosure & Investor Relations award: This award recognises companies that maintain good investor relations with the wider investing public and make timely and accurate reports and announcements to the JSE.

Junior Market
Winner – CAC 2000 Limited
1st Runner Up – Honey Bun (1982) Limited.
2nd Runner Up – Lasco Financial Services Limited.

Main Market
Winner – NCB Financial Group Limited
1st Runner Up – GraceKennedy Limited
2nd Runners Up – Mayberry Investments Limited & PanJam Investment Limited. (Joint winners)

Website
Junior Market
Winner – Ttech Limited
1st Runner Up – FosRich Company Limited
2nd Runner Up – Paramount Trading Jamaica Limited

Main Market
Winner – GraceKennedy Limited
1st Runner Up – JMMB Group Limited
2nd Runner Up – Sagicor Group Jamaica Limited

PSOJ/JSE Corporate Governance award: This award seeks to recognise companies that demonstrate and practice outstanding corporate governance.

Junior Market
Winner – Honey Bun (1982) Limited (for the 2nd year running)
1st Runner Up – Lasco Financial Services Limited (2nd year running)
2nd Runner Up – Lasco Distributors Limited

Main Market
Winners (joint) – GraceKennedy Limited and NCB Financial Group Limited
2nd Runner Up – Supreme Ventures Limited

Overall Winners

Junior Market
Honey Bun (1982) Limited and Lasco Financial Services Limited (Joint winners)

Main Market
GraceKennedy Limited