Know Your Rights as an Investor Part 1

Know Your Rights as an Investor -Pt.1

The growing use of social media platforms such as Facebook, Instagram and LinkedIn, has significantly altered the way in which individuals and businesses communicate and transact business. Investment providers have taken advantage of this opportunity and have utilised online forum to advertise their products to a wider audience. As a result, consumers are exposed to a wide array of attractively packaged investment offerings targeting their money. It is important for consumers to be aware of their rights and responsibilities as investors, in order to protect themselves from becoming victims of fraudulent investments schemes. In part one of this two- part feature, titled ‘Know Your Rights as an Investor’, we focus on the personal role of the investor in making informed decisions, and some of the ways in which the Trinidad and Tobago Securities and Exchange Commission (TTSEC) can assist, through the provision of information and access to learning resources.

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Building a Culture of Compliance Part 2

Building a Culture of Compliance- Part 2

The Trinidad and Tobago Securities and Exchange Commission (TTSEC) is empowered under Section 89 of the Securities Act Chapter 83:02 (SA) to conduct compliance reviews while Section 7(1)(l) enables the TTSEC to “monitor the risk exposure of registrants and selfregulatory organisations and take measures to protect the interest of investors, clients, members and the securities industry”. Registrants (i.e. registered broker dealer, investment adviser, underwriter or other person registered under section 51(1) of the SA) engaging in more complex or riskier business activities must be able to demonstrate that their risk management capabilities match their risk appetite, as well as the scale and complexity of their operations.

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Building a Culture of Compliance Part 1

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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Importance of Continuous Disclosure Filings by Registrant

Importance of Continuous Disclosure Filings by Registrants

Trinidad and Tobago Securities and Exchange Commission

The Trinidad and Tobago Securities and Exchange Commission (TTSEC), as the regulator of the securities industry, utilizes various mechanisms in discharging its statutory mandate to protect the rights and interests of investors. 

Among the mechanisms employed by the TTSEC to promote investor protection, is by ensuring registrants disclose all relevant information necessary for investors to make the investment decision that best serves their needs and risk appetite. This is referred to as a disclosure-based system of regulation. In a disclosure-based system of regulation, the regulator attempts to ensure that investors are provided with the necessary information about the products and players in the market; in order to make an informed investment decision. It is important to note that the TTSEC does not attempt to tell investors whether an investment opportunity is good or bad for them.

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Handling Investor Complaints

Handling Investor Complaints

Trinidad and Tobago Securities and Exchange Commission (“TTSEC”) is charged with reviewing and investigating all complaints and ‘tips’ received in relation to the securities industry, including, but not limited to, those made against Broker-dealers, Investment Advisers, Underwriters, Reporting Issuers and Self-Regulatory Organizations.

Over the period 2018/2019 the TTSEC received 14 complaints from investors. Some of these complaints are provided in the checklist diagram below.

Complaints to the TTSEC must be made in writing. If the alleged action suggests that any individual or institution has breached the Securities Act, 2012 (“the Act”) or has failed to execute its fiduciary duty to an investor, the TTSEC is mandated to conduct further inquiries into the matter. Accordingly, the reviews conducted by the TTSEC may result in the initiation of a formal investigation or enforcement action, if warranted.

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