Source: Protecting the investor | The Herald 09 MAR, 2020
The Securities and Exchange Commission of Zimbabwe (SECZ) remains dedicated to protecting investors and promoting investor confidence.
Such protection is best realised as a combination of various but closely integrated procedures that include but not limited to, market regulation and enforcement, supervision of securities companies.
This is mainly achieved through the ongoing development of a regulatory system aimed at ensuring high level of investor protection as well as the development of compliance capability to ensure market integrity.
Below is a summary of how SECZ protects investors:
In line with global capital market standards, SECZ abides by the principle of transparent disclosure of information by market participants. In other words, all information concerning a company that can influence investment decisions must be made public for the benefit and protection of investors.
SECZ ensures that all capital market players are licensed and registered with the Commission. A list of licensees is available on the website www.seczim.co.zw. Investors are advised to check the list before engaging in any securities transactions. Both the service provider and the capital market product must adhere to the securities market regulations.
SECZ promotes market integrity through the establishment and enforcement of rules. This is done through the adherence to the Securities and Exchange Act (Chapter 24:25) and its provided by-laws, as well as conducting routine surveillance of market standards and investigations of possible infringements of the Securities and Exchange Act.
SECZ conducts on-site inspections to ensure that registrants comply with the legislation and to identify compliance issues and emerging risk areas that could adversely affect investors.
SECZ established the Investor Protection Fund which provides an additional layer of protection to investors by compensating them for losses suffered as a result of insolvency of a licensed market player.
Investor protection plays a key role in boosting investor confidence and contributing to market growth.
Therefore, SECZ continues to closely monitor market activity.
COMMENTS
Investor protection can only be afforded when rule of Law is strictly adhered to by the Government and all its arms, otherwise this article is as good as a bar talk.