Standard of Best Practice - Management or Investment of Customers’ Funds

The Bank of Jamaica issued this Standard of Best Practice to prohibit banks from managing or investing customer funds unless conducted under a valid Trust arrangement. The regulation mandates the strict segregation of trust assets from the bank's deposit-taking operations to prevent commingling, conflicts of interest, and contagion risk. It further requires robust governance, including independent management teams, transparent fee structures, and comprehensive record-keeping to ensure fiduciary duties are upheld.

Jamaica

Bank of Jamaica