Powers and Functions

The functions of the Commission as stipulated in Section 6 of the Act are to:

  1. Advise the Honourable Minister of Finance on all matters related to the securities industry;
  2. Maintain surveillance over the securities market and ensure orderly, fair and equitable dealings in securities;
  3. Register, authorise or regulate self-regulatory organizations and market actors with a view to maintaining proper standards of conduct and professionalism in the securities industry;
  4. Regulate and supervise the timely, accurate, fair and efficient disclosure of information to the securities industry and the investing public;
  5. Conduct such inspections and examinations of self-regulatory organizations, broker-dealers, registered representatives, underwriters, issuers and investment advisers;
  6. Protect the integrity of securities markets against abuses arising from market manipulation, insider trading, conflicts of interest and unfair or improper practices;
  7. Educate and promote an understanding by the public of the securities industry and the benefits, risks and liabilities associated with investing in securities;
  8. Cooperate with and provide assistance to regulatory authorities in Trinidad and Tobago and elsewhere;
  9. Ensure compliance with the Proceeds of Crime Act and any other written law in relation to the prevention of money laundering and combatting the financing of terrorism; and
  10. Create and promote such conditions as may seem necessary to ensure the orderly growth and development of the capital market;
  11. Cooperate with other jurisdictions in the development of a fair and efficient securities industry
  12. Assess, measure and evaluate risk exposure in the securities industry.

In order to carry out the foregoing functions, the Commission has the power, under Section 7 of the Act, to:

  1. Formulate principles for the guidance of the securities industry;
  2. Treat with such matters as may be referred to it by any person from time to time;
  3. Register and regulate market actors in accordance with this Act;
  4. Monitor the solvency of registrants, securities markets and self-regulatory organizations and take measures to protect the interest of investors where the solvency of any such person is in doubt;
  5. Adopt measures to supervise and minimize any conflict of interest that may arise in the case of registrants or self-regulatory organizations and where appropriate, other market actors;
  6. Review, approve and regulate takeovers, amalgamations and all forms of business combinations in accordance with this Act or any other written law in all cases in which it considers it expedient or appropriate to do so;
  7. Review the contents of prospectuses and issue receipts therefor, and review any form of solicitation, advertisement or announcement by which securities are proposed to be distributed;
  8. Take enforcement action against any person for failing to comply with this Act;
  9. Recommend By-Laws to the Minister
  10. Formulate, prepare and publish notices, guidelines, bulletins and policies describing the views of the Commission regarding the interpretation, application or enforcement of this Act;
  11. Make orders;
  12. Monitor the risk exposure of registrants and self-regulatory organisations and take measures to protect the interest of investors, clients, members and the securities industry;
  13. Undertake such other activities as are necessary or expedient for giving full effect to this Act; and
  14. Do all things, and take all actions, which may be necessary, expedient, incidental or conducive to the discharge of any of its functions and the exercise of its powers under this Act.

It is important to note that the Commission, however, does not evaluate the merits or de-merits of any investment but seeks to ensure that sufficient information is available for an investor to make an informed decision.

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