The Jamaica Stock Exchange is once again in the pages of history as the Finance Minister of Canada the Honourable Joe Oliver, P.C., M.P. approved the Jamaica Stock Exchange as a Designated Stock Exchange under the Income Tax Act of Canada. A Designated Exchange means that persons in Canada who purchase stocks on the Main JSE market will be exempt from taxes on income derived from these purchases in that country. This means that stocks on the JSE’s Main Market will become more attractive to Canadian Pension Fund, Investment Managers and Investors on a whole. This also means that if the Jamaican Diaspora Bonds are listed on the JSE Main Market it will be very attractive to the Jamaicans in Canada as they will not be required to pay income tax when trading these bond.
For the JSE to have been recognized as a Designated Exchange, it had to meet certain standards, including adherence to rules and regulations, maintain a reasonable level of liquidity and offer a range of product on the Exchange. This means that the JSE must continue to adhere to these standards.
Mrs. Street Forrest, General Manager of the JSE, stated, “This is a significant milestone in our history, when the Canadian Government recognized the JSE as a Designated Exchange. This seeks to further solidify the relationship between Jamaica and Canada, a country which was instrumental in assisting the JSE with its first sets of Rules and the JSE’s Securities Course.
According to Attorney-at-Law Courtney Betty who represented the Stock Exchange in the application, “Canadian investors, especially those from the Diaspora present a tremendous opportunity to grow the Jamaica Stock Exchange as well as contributing to the growth and development of Jamaica.”
