Come January 2, persons can begin to register their collateral, including non-traditional assets, with the Security Interests in Personal Property (SIPP) Registry and also access the super form for ease of business transactions.
Both instruments are being implemented by the Government through the Companies’ Office of Jamaica (CoJ). They form part of the Government’s business reform agenda, designed to enhance the investment environment and ultimately spur entrepreneurship and economic growth.
SIPP, also referred to as the National Collateral Registry, aims to facilitate financing for micro, small, and medium-sized enterprises (MSMEs).
Addressing a press conference on Thursday, December 19, at his New Kingston offices, Minister of Industry, Investment and Commerce, Hon. Anthony Hylton, explained that the registry will provide critical protection to creditors and will also help mitigate the risk to financial institutions.
“The registry forms part of the secured transactions framework, designed to modernise and improve commerce, by expanding access to domestic credit, while at the same time, minimising the risks of loan default. This is another structural benchmark agreed to by the Government of Jamaica with the International Monetary Fund (IMF), and we are ahead of the deadline,” he said.
The SIPP registry will be a repository of information on non-real estate assets being tendered as collateral for securing loans under the SIPP Act, including motor vehicles, stocks and securities, agricultural products, crops and other agricultural yields, (e.g. plants, trees and land) machinery and equipment, accounts receivable and futures, for example, future crops, future acquisition of security interests and unborn livestock.
In addition, owners of creative works, innovators and inventors, will now be able to leverage their intellectual property, such as copyright, patents and trademarks to be used as collateral in securing loans.
“The financial institutions will register notices of loans granted and the associated assets used as collateral. The availability of this information in a central database will enable the institutions to verify any previous use of the potential collateral, and establish priority with regard to other claimants on the same asset,” the Minister informed.
He said that the introduction of the registry coincides with the availability of the new Business Registration Form or ‘super form’ which will address a wide cross section of issues faced by individuals in the process of business startup, and ease the “tremendous heartache” of many members of the MSME sector.
“The ‘super form’ represents a quantum leap in improving the business environment and increasing competitiveness. This is crucial, as the success of new ventures and the sustainability of existing businesses to operate sustainably, in large measure, depend on the competitiveness of the business environment,” he said.
The Industry Minister said the multi-purpose registration form, available at the CoJ, is a ‘one stop shop’ for businesses.
“With the introduction of the superform you save time and cost, as the incorporation of a company or the registration of a business name, will require only one trip, that is, to the CoJ. It therefore eliminates the need to visit multiple agencies to process a TRN (tax registration number), NIS (National Insurance Scheme) number, GCT (General Consumption Tax), and NHT (National Housing Trust) requirements or to procure clearance letters,” he said.
Mr. Hylton said that the implementation of the superform and the introduction of the SIIP registry, “underscores our commitment, as a Government, to significantly strengthen the business environment, raise our level of competitiveness and put Jamaica on a glide path towards sustained economic growth and prosperity.”
By Alecia Smith-Edwards
