ABOUT THE GSC

The Guyana Securities Council (GSC) was established pursuant to the Securities Industries Act, Act No. 21 of 1998 with a primary mandate to ensure the orderly growth of the securities market in Guyana.

The Council has a secondary mandate established pursuant to the Anti Money Laundering and the Countering the Financing of Terrorism Act, Act No. 13 of 2009 and amendments, as the designated supervisory authority of reporting entities within the securities market.

Our mission is to ensure the orderly growth and development of the securities market within a dynamic regulatory framework that facilitates the mobilization of capital in the national interest and in a transparent, efficient, fair and competitive manner.

GSC’s vision is “to promote integrity, stability, orderliness and confidence in the local securities market.”

The principal functions of the Council, under Section 5 of the Securities Industry Act 1998 (S.I.A.) are to:

  1. advise the Minister of Finance on all matters relating to securities;
  2. maintain surveillance over the securities market and ensure orderly, fair and equitable dealings in securities;
  3. register, authorize or regulate, in accordance with the Securities Industry Act 1998, self-regulatory organisation, securities companies, securities intermediaries, brokers, dealer, traders, underwriters, issuers and investment advisers, and control and supervise their activities with a view to maintaining proper standards of conduct and professionalism in the securities business;
  4. protect the integrity of the securities market against abuse arising from the practice of insider trading;
  5. create and promote such conditions in the securities market as it may seem necessary, advisable or appropriate to ensure the orderly growth and development of the capital market.

Under Section 6 of the Securities Industry Act 1998 (S.I.A.), the Council has the power to:

  1. deal with such matters as may be referred to it by any person registered with the Council under the S.I.A. from time to time;
  2. formulate principles for the guidance of the securities industry;
  3. monitor the solvency of registrants and take measures to protect the interest of customers where the solvency of any such registrant is in doubt;
  4. adopt measures to supervise and minimize any conflict of interests that may arise in the case of brokers or dealers
  5. review, approve and regulate take-overs, amalgamations and all forms of business combinations in accordance with the S.I.A. or with written law in all cases in which it considers its expedient or appropriate to do so;
  6. review the contents of prospectuses, offering circulars or any form of solicitation, advertisement or announcement by which securities are offered for sale to the public; review the contents of prospectuses, offering circulars or any form of solicitation,
  7. take action against persons registered or required to be registered under the S.I.A. for failing to comply therewith;
  8. undertake such other activities, including the making of regulations, as are necessary or expedient for giving full effect to the S.I.A..,
  9. do all things which may be necessary or expedient or are incidental or conducive to the discharge of any of its functions and powers under the S.I.A..

The Guyana Securities Council is an independent autonomous body established under Section 4 of the Securities Industry Act 1998. The Securities Industry Act 1998 is an Act that provides for the registration of securities brokers and dealers, self-regulatory organisations, and issuers of securities. It also provides 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.

The Guyana Securities Council in executing its primary mandate under Sections 5 (a) – (e) and 6 (a) – (i) of the Securities Industry Act 1998, performs the following fundamental duties, among others:

  1. Registration of all public companies;
    • Registration of Annual Registration Statements;
  2. Analyze all company’s Annual Reports and Interim Reports for:
    • Disclosure obligations relating to the delivery of accounts;
    • Review the information in the accompanying director’s report;
    • Review the acquisition or disposal of major assets
    • Review transactions with related parties and companies;
    • Review information with regards to shareholders, substantial shareholdings, board meetings, board discussions and notifications to the Council;
  3. Register all Treasury Bills issued by the Bank of Guyana;
  4. Register and publish by 31st March, each year, a list of all valid registrants, by class of registration;
  5. Maintaining the Register for all Market Participants and registrants registered by the Council;
  6. Surveillance of the securities market; oversight of the Self-Regulatory Organisation (SRO), the Guyana Association of Securities Companies and Intermediaries (GASCI);
  7. Monitor the Stock Exchange for:
    • Protection of investors and public interest;
    • Fostering of corporation and coordination among persons who clear, settle, regulate and process information to facilitate trading in securities;
    • Ensuring the fair representation of the SRO members;
    • Prevent deceptive and manipulative practices from occurring in the securities market;
    • Ensure both on and off platform trades are done using fair trading practices;
    • Review and analyze the SRO’s and Market Participant’s Annual Reports;
    • Investigate unfair pricing of securities – the Council is currently investigating the pricing of several Reporting Issuers shares used by attorneys to settle deceased persons estates;
    • Monitor the registered Market Participants for independence, material interest, ensuring their customers understand the risks, customer agreements and after market transactions. This type of monitoring is done on a continuous basis with the SRO and Market Participants;

The Council’s functions and powers are mandated by the Securities Industry Act 1998 and Regulations thereto, and the actions the Council undertakes is reactive to the misconduct and non-compliance of the Registrants, Market Participants, Reporting Issuers and other Stakeholders of the Securities Industry.

The Council under its secondary mandate as a Supervisory Authority under the Anti-money Laundering and Countering the Financing of Terrorism Act 2009; Section 22 (c) of the AML/CFT Act 2009 has the responsibility as a Supervisory Authority for reporting entities who perform the business activities specified in the Fourth Schedule of the Act, which are enumerated below:

  1. Trading for own account or for account of customers in money market instruments (such as cheques, bills, certificates of deposit), foreign exchange, financial futures and options, exchange and interest rate instruments, and transferable securities.
  2. Underwriting share issues and participation in such issues.
  3. Advice to undertakings on capital structure, industrial strategy and related questions, and advice and services relating to mergers and the purchase of undertakings;
  4. Money-broking;
  5. Portfolio management and advice;
  6. Safekeeping and administration of securities;
  7. Venture risk capital;
  8. Unit trusts.