Frequently Asked Questions
What is the Guyana Securities Council ("G.S.C")?
The G.S.C is an independent autonomous body established by Section 4 of the Securities Industry Act 1998.
What is the Securities Industry Act 1998? ("S.I.A")?
The long title to the S.I.A states that it is an "An Act to provide for the registration of securities brokers and dealers, certain self-regulatory organizations, and certain issuers of securities and for the regulation of securities issuances; with the purpose of encouraging capital formation and the growth of efficient securities markets, while protecting purchasers of securities and promoting ethical behavior in the securities industry."
Simply stated, the objective of the S.I.A, is to establish a securities regulatory system primarily designed to protect investors.
When did the S.I.A come into operation?
Although the S.I.A was enacted on 31 December, 1998, it was not then brought into operation, because at that time, none of the Regulations necessary to implement the S.I.A had been made. Section 2 of the S.I.A empowers the Minister of Finance to bring it into operation by Order and enables it to be brought into operation in stages. The Minister as the first stage, brought into operation Parts I, II and sections 126 to 132 of the S.I.A on 15 December, 1990.
This established the Guyana Securities Council ("G.S.C"), allowed Members to be appointed to the Council, and empowered the making of regulations as enabled by the S.I.A. As the second stage, the Minister then brought into operation the remainder of the S.I.A (with the exception of Part VIII) on 22 July 2002.
What is meant by "securities" and "securities regulation"?
"Securities" are widely defined in the S.I.A and include shares, stock, bonds and units in a collective investment scheme.
"Securities regulation" means the variety of statutory controls and requirements introduced by the S.I.A over the issue and trading of securities intended to provide a degree of protection for persons who invest in securities.
Why is securities regulation necessary?
A securities market is vital to the growth, development and strength of a country's economy. It supports corporate initiatives, finances the exploitation of new ideas and facilitates the management of financial risk. Further, since retail investors are placing an increasing proportion of their money in mutual funds and other collective investment schemes, securities markets have become central to individual wealth and retirement planning. Sound and effective regulation and, in turn, the confidence it brings, is important for the integrity, growth and development of a securities market.
What are the functions of the G.S.C?
Section 4 of the S.I.A provides that the functions of the G.S.C include the maintaining of the surveillance over securities markets and ensuring orderly, fair and equitable dealings in securities, the registration of persons engaged in trading or advising on securities and the supervision of their activities with a view to maintaining proper standards of conduct and professionalism in the securities business, the protection of integrity in the securities markets against abuses arising from insider trading, and the creation and promotion of such conditions in the securities markets as are necessary, advisable or appropriate to ensure the orderly growth and development of the capital market. Read more here.
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