JMMB Undertakes Restructuring Exercise

• JMMB Group Limited (JMMBGL), the parent company of JMMB Group of companies, carried out a restructuring exercise involving some of its Jamaican member companies effective March 31, 2023. This move comes following JMMB’s receipt of a no-objection response from the Bank of Jamaica to the group’s proposed restructuring.
• JMMB indicated that the exercise is part of a wider restructuring exercise being undertaken by the group and was done to ensure its compliance with the Banking Services Act, 2014 (BSA) which requires financial groups to separate financial services companies in the Group from the non-financial companies.
• As a result, JMMB Financial Holdings Ltd was incorporated as a new, direct wholly owned subsidiary of JMMB Group Ltd for the purpose of holding, directly and indirectly, the shares of all of the financial services companies within the group. The remaining non-financial Jamaican companies (JMMB Real Estate Holdings Limited and Capital and Credit Securities Limited) are now held under the direct ownership of JMMB Group instead of JMMB Limited.
• The statement noted that the restructuring will not impact the group’s operations and services and that JMMBGL will remain listed on the Jamaica Stock Exchange and the Trinidad and Tobago Stock Exchange.
• JMMB is the latest financial institution to restructure its organisation to create a financial holding company in order to separate its non-financial subsidiaries. Victoria Mutual Building Society (VMBS) and Cornerstone United Holdings Jamaica (CUHJL) also recently announced similar reorganisation exercises.

(Source: JSE)