Do you understand the transformation exercise being undertaken by your Society?
Learn how you will benefit even more from JN and understand how your membership will be preserved, as the largest fully Jamaican-owned financial institution positions itself for even more growth!
Will the new JN structure mean higher banking fees for me?
JN is committed to maintaining fees significantly lower than those charged by other commercial banks and will seek to maintain this philosophy going forward.
Will I still be able to access benefits across the JN Group?
As a legal owner of the Mutual Holding Company, you will be able to reap all the benefits that were afforded to you as a JNBS member. In addition, you will have access to the benefits from our expanded offerings. These include discounts on products and services from other JN Group entities and affiliated merchants.
Will I be able to still get mortgages from JN?
Yes. JN will continue to be the leading private mortgage provider.
What are the new products and services that will be offered by the new JN commercial bank?
As a customer of the new JN commercial bank, you will have access to the same types of products and services offered by other commercial banks, in addition to the products and services you now receive from JNBS. These include chequing accounts, credit cards, additional loan products and mortgages. We will add other products and services, based on your demand and our ability to offer them.
Will I be able to vote if I am overseas?
If you are overseas and unable to physically attend the Special General Meeting, you may choose to vote using a proxy ballot. You may designate someone, for example, the JNBS Board Chairman, to cast a vote on your behalf.
If my JN account is dormant, will I still be able to vote?
Yes, if your account is dormant, you will still be entitled to a vote.
\How many times can I vote?
In keeping with the JNBS Book of Rules, you will be entitled to only one vote, regardless of the amount of money in your JNBS account.
What is the voting process?
Jamaica National will make the process of voting simple, free and fair for all members. When the Supreme Court grants its initial approval of the proposal to convert JNBS and reorganise the JN Group, you will be invited to attend a Special General Meeting (SGM) to vote on the proposed changes. However, before the meeting, JNBS will communicate with you and provide you with all the information necessary to assist you with understanding the proposed changes. At the SGM, you will be provided with a ballot paper on which you will place your vote at the appropriate time. Each vote will be counted and the results of the poll will be announced at the meeting. Independent auditors will oversee voting to ensure the process is fair.
Do I have a say in whether JN becomes a bank and reorganises its Group?
Yes, as a member, you have a legal say in whether JN becomes a bank. However, the organisation must be restructured to meet the requirements of the Banking Services Act.
Are there alternatives to reorganising the JN Group?
A reorganisation of the JN Group is inevitable. For regulatory purposes, the Banking Services Act, passed in 2014, requires that groups which offer financial services, such as JN, separate their financial entities from any non-financial ones. Therefore, while some reorganisation is required, our proposed structure allows us to establish a commercial bank along with meeting the requirements of the new banking law. The decision to apply for a banking licence is intended to strengthen and expand the financial services of the JN Group.
How long will it take for JN to reorganise?
When the Minister of Finance approves our application for a banking licence, JN will make an application to the Supreme Court to approve the proposed conversion of JNBS to a commercial bank and the reorganisation of the JN Group. After the Supreme Court’s approval, a Special General Meeting will be convened; and, you, as a member, will be asked to vote to approve the proposed JN Group structure. Subsequent to your approval, we will return to the Supreme Court for a final decision. When the Supreme Court grants permission, the licence will be signed by the Finance Minister, which will allow us to commence operations as a commercial bank. However, although we will be able to offer commercial banking services, it will take a maximum of 12 months for the restructuring of the entire JN Group to be completed, starting from the date of the Court’s final approval.
How will the reorganisation of JNBS benefit me
Your membership in the new JN will afford you great benefits. These include:
- Ownership in the third largest financial institution in Jamaica and only fully Jamaican-owned financial entity
- Access to a wider range of top-rated, quality banking products and services
- Access to a broad range of products, services and rewards across the JN Group
How is JN’s reorganisation different from the process undertaken by other mutual organisations around the world, particularly in the United Kingdom?
Unlike other mutual organisations, including those in the United Kingdom, the membership rights of all JN members will be retained in the new JN Group. In our application to the BOJ, we have proposed that all membership rights in JNBS will be transferred to, and preserved in, a Mutual Holding Company. The Mutual Holding Company will own all entities in the new JN Group, including the new commercial bank. Therefore, unlike other mutual organisations, which have undertaken similar changes, JN will remain a mutual organisation owned by its members.
What happens to my membership in JNBS when JN Group reorganises?
Your membership rights in JNBS will be transferred to the Mutual Holding Company, which will own all entities in the new JN Group, after JNBS converts to a commercial bank. As an owner of the Mutual Holding Company, your legal rights and responsibilities will be outlined in the Articles of Incorporation, which will replace the JNBS Book of Rules. The Articles of Incorporation are the primary rules governing membership in the new JN Group.
What will happen to my JNBS account when JNBS becomes a commercial bank?
Your JN account will be maintained in the new JN commercial bank. However, your membership rights will be transferred to the new Mutual Holding Company, which will own all entities in the JN Group.
What is the purpose of the reorganisation?
The Banking Services Act, passed in 2014, has made it compulsory for your Society to make changes to the structure of the JN Group. We have made a proposal that will allow us to separate the financial and non-financial companies in the JN Group, to ensure that we are compliant with the new law. In addition, in order to provide you with the services of a commercial bank, your Society has made an application to the Bank of Jamaica for a banking licence. As a commercial bank, we will be able to expand our services to include certain loan products and chequing accounts, which we cannot, under Jamaican law, offer to you as a building society. The proposed changes to the JN Group structure have been carefully considered by your board of directors, to ensure that your membership rights and the values of JN are securely preserved. Therefore, although we are proposing to make changes to the Group structure to offer you a wider range of services and to ensure compliance with the law, your JN will remain committed to the same values you have known and trusted for more than 14 decades.
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