Importance of the Securities Market (Part 1)

The Trinidad and Tobago Securities and Exchange Commission (“TTSEC”) is an autonomous agency whose primary roles are the protection of investors and fostering the orderly growth and development of the local capital market. While securities regulation exists to protect investors and foster growth in the market, the ultimate goal of securities regulation is to attain efficient financial markets and thereby improve the allocation of resources in the economy.

There are several economic theories that stress that banks provide services to the economy that differ from those provided by securities markets, predicting that both the operation of banks and the functioning of securities markets have independent influences on economic development. Furthermore, it is stated that better functioning banks and securities markets exert robust, independent, and positive effects on economic activity2.

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Importance of Financial Regulation in the Securities Industry

An English poet, John Donne famously wrote that “no man is an island.” An old adage which can also speak to the interconnectedness of financial markets and how their actions impact the global economy. The global financial crisis of 2007 – 2008 (“the financial crisis”) serves as a stark reminder of the domino effect of the downturn in major financial markets on other economies. Inadequate regulation and supervision in global financial markets and banking systems are one of the main causes of the financial downfall. More than ten (10) years later, regulators worldwide continue to explore the lessons learnt from the financial crisis and have since implemented financial regulatory reforms to lessen the likelihood of the recurrence of such a colossal economic downturn. Adequate and appropriate regulation is critical to mitigate market failures. Through financial regulation, the Trinidad and Tobago Securities and Exchange Commission (“TTSEC”), with the cooperation of other local regulators, aim to mitigate systemic risk. This week’s article explores the meaning of financial sector regulation and its importance to the proper functioning of the securities market.

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Guidelines for Investing Wisely

It is the end of the year, and you’ve saved just enough to make an investment and support a new saving goal, as you enter the New Year 2022. You’re about to explore the potential of investing in the local securities industry.

This is great! You need to consider a few things before you jump right in. For instance, consulting with a registered financial adviser and conducting the necessary research to ensure that the company, and the security that you are interested investing in, are registered with the Trinidad and Tobago Securities and Exchange Commission (TTSEC). This can be easily achieved by visiting our corporate website at TTSEC.ORG .

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The Cost of Investing

Participating in the securities market comes at a financial cost. This week’s article focuses on the types of costs incurred by investors participating in the securities market. The products and services within the securities market are diverse and carries varying costs. Costs will be attributable to Broker-Dealing services, Collective Investment Schemes (“CISs”)/Mutual Funds, Wealth Management, Repurchase Agreements and Asset Backed Securities.

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Building a Culture of Compliance- Part 1

The International Organisation of Securities Commissions (IOSCO) defines compliance as a function that, on an on-going basis, identifies, assesses, advises on, monitors and reports on a market intermediary’s compliance with securities regulatory requirements, including whether there are appropriate supervisory procedures in place.

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