What is the Jamaica Social Stock Exchange?

Posted: November 10, 2018 at 4:56 pm

The Jamaica Social Stock Exchange (JSSE) is being pioneered by the Jamaica Stock Exchange (JSE), not just as a Corporate Social Responsibility (CSR) activity of the JSE, which it is initially, but is actually innovating the Financial Sector to the promotion of the Social Capital Markets. In so doing, it will be helping to localize the 17 United Nation’s Sustainable Development Goals-SDG’s (circa Rio 2015) which evolved out of the Millennium Development Goals (MDGs).

It proposes to initially establish a self-sustaining Jamaica Social Investment Exchange(JSIX) for the “Not for Profit” Sector and to establish in the second phase, as the upcoming legislation allows, the Equity or Impact Investment based model, the Jamaica Impact Investment Exchange(JIIX).

It will engage the Financial Sector and the entire economy of the country towards a greater good, which encompasses sustainable development with people at the centre, growing the Social Economy, which is now approximately 3.5% of Jamaica’s US$17B economy, largely comprising “Not for Profits” or NGOs.

Combined with an emerging formal Social Enterprise (SE) sector, through the JSSE, we can see growth in Gross Domestic Product (GDP).

What is a Social Enterprise? “A Social Enterprise is a business whose mission is to solve social, cultural, economic or environmental problems at the community and/or national level, through effective and ethical business practices with the reinvestment of profits to the social mission.” – Jamaica MSME and Entrepreneurship Policy, 2018

1. The Objective
The JSE wishes to help promote and develop the Social or the Third Sector through the operation of the JSSE, with THE VALUE PROPOSITION – “SUSTAINABLE Growth in the Social Sector is good for business”.

Globally, managers are being responsive to the fact that non-financial factors, especially Socio-Cultural and Environmental do affect the long term returns of businesses, as the consuming public and investors are now requiring more people and environmental considerations in how business is pursued. This focus is forcing the TRIPLE BOTTOM LINE model of PEOPLE, PLANET, PROFIT to business.

2. The Offer
At the launch of the JSIX, organizations may apply to list their projects on the JSIX Website for donations to start up or expand. Prospective individuals and institutions, “virtuous or socially responsible investors”, will access the JSIX website and select the project(s) they wish to “invest” or “hold shares in”, donate through the platform and be receipted to facilitate tax claims where applicable and for refunding if it becomes necessary.

3. Procedures
The following procedures will apply to projects to be listed:

(i) Projects/Organizations must undergo a transparent and rigorous selection process comprised of five (5) stages which includes a site visit.

(ii) The JSIX will hold three evaluation rounds annually ending at February 15, May 15 and August 15. Selected projects will then be listed on the JSIX website and so become eligible to receive contributions.

(iii) Projects applying to be listed on JSIX can request JAD $5-25M per project.

(iv) Organizations will be required to provide quarterly and semi-annual reports concerning the activities, progress and status of their projects throughout the listing period. Such reports must be submitted in the form provided by JSIX upon signing of the Partnership Contract.

(v) Projects will only begin receiving funding when they obtain 100% of the funds needed to affect the project.

(vi) Projects will be required to self-generate 10% of project funding needed.

We are proud to propose this as an absolutely transparent process. Wherein, a donor/investor via the website can make ongoing observation of how project(s) of choice are progressing, thus giving credibility to the management of their investments, made in the form of donations.

4. The Administration
The Social Stock Exchange is established with its own governance structure, consisting of a Board of Councilors, chaired by the distinguished Prof. Neville Ying, on which sits the Managing Director of the JSE as Ex-OFFICIO, along with two (2) other JSE Board Directors, distinguished persons from Business, Banking, Academia, Social Entrepreneurship, the Voluntary Sector, Development Agencies and a Youth in Business representative.

Further it has a focused SELECTION/LISTING Committee chaired by Dr. Henley Morgan.

Both the Board and the Selection/Listing Committee gives overall support to the dedicated Management Team.

The funds collected that are not donated for a specified project will be deposited in the JSIX Consolidated Fund account.

All of the funds raised by JSIX will attract a 10% sur-charge to administer it.

 

Please view the competition page in order to apply

 

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