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Investor Protection on The FINSEC ATP

Investors are the back-bone of the securities market. They not only determine the level of activity in the securities market but also the level of activity in the economy. It is imperative for the healthy growth of the economy that investors’ confidence in the market is maintained. The FINSEC Alternative Trading Platform (ATP) cultivates investor knowledge in the marketplace, ensuring an understanding of the investing public in the rights and obligations of the investors and the issuers in which they invest. FINSEC encourages information services to help investors gain a thorough understanding of their rights and investigate the background of the issuer as well as securities dealers before making trading decisions. Key information to understand includes: the issuer’s background, performance and prospects; an overview of the market structure, participants and processes; the background of investment professionals and intermediaries; preventing potential problems, lodging complaints and resolving disputes. Full disclosure of information to investors is the most important means for ensuring investor protection. This is because investors are better able to assess the potential risks and rewards of their investments and thus, can protect their own interests. Pre-listing requirements prescribed by FINSEC are meant to sieve unsound offers. Thus, in the primary market, new issues are subject to publication of an offer document whilst pre-listing statements are pre-requisite for listings by introduction. In all, the ATP emphasises that all investors make informed investment decisions based on thorough research, which includes evaluating a company's disclosures and financial reports as well as the prices and market for the company’s securities.  FINSEC ensures daily circulation of securities prices as well as annual and interim reports by issuers as part of their ongoing obligations. This makes the marketplace more transparent, efficient and investor-friendly. Further to prescribing the quantity and quality of information a company provides, FINSEC also provides issuers with services to engage and inform their investors. For the secondary market FINSEC prescribes trading and settlement rules as well as membership and business conduct rules which govern the trading, settlement and related activities of market intermediaries (custodians, securities dealers, transfer secretaries and settlement banks). The FINSEC ATP ensures that market structures do not unduly favor some market users over others. The ATP’s rules are designed to detect, deter and penalise market manipulation and other unfair trading practices. FINSEC recognises the importance of a strong and firm regulatory role of the Securities and Exchange Commission of Zimbabwe (SECZ) as well as fair law enforcement. Thus, all market intermediaries on the FINSEC ATP are regulated by SECZ. Regulation ensures the highest levels of transparency and promotes market practices that guarantee fair treatment of orders and a price formation process that is reliable and further aims to ensure that investors are given fair access to market facilities. The Financial Securities Exchange (FINSEC) is a Zimbabwe registered securities exchange and a member of the Escrow Group. The Escrow Group has interests in the financial services and technology sectors. Corpserve Registrars and Escrow Systems are the other members of the group.

  Tue Oct 2017