Cornerstone Group to Reorganise

• Barita Investments Limited (“BIL”) has announced that its parent company, Cornerstone Group, is embarking on a corporate reorganisation to comply with the Banking Services Act of 2014 (“BSA”).

• This act requires that financial groups are organised to facilitate consolidated supervision by the Bank of Jamaica (BOJ), which requires that regulated entities be structured under a Financial Holding Company (FHC) which must be licensed by the Bank of Jamaica.

• Pursuant to the requirements of the BSA, the primary purpose of the Schemes of Arrangement is to facilitate the reorganisation of the Regulated Companies (as defined herein) within the Group under one holding company i.e. the (FHC) to enable consolidated supervision by the BOJ.

• Under the proposed new structure, Cornerstone Trust & Merchant Bank Limited (CTMB), Barita and Barita Unit Trusts Management Company Limited (“BUTM”), will be held under the FHC, i.e. Barita Financial Group Limited (“BFGL”), all together constituting the Regulated Companies.

• BFGL was incorporated in Jamaica on September 15, 2023, to serve as the FHC and hold the other Regulated Companies as outlined in the Schemes of Arrangement. Once the Schemes are completed, BFGL will become the parent company of these entities. Under the Schemes, the FHC was set up as a subsidiary of Cornerstone Financial Holdings Limited (CFHL), which will be the ultimate holding company of the Group after the reorganisation.

(Source: JSE)