The ECSM is the financial sector of the ECCU in which transactions relating to the sale and purchase of securities take place.

The ECSRC’s goals are to:

1. Deliver effective investor protection;
2. Deliver relevant regulation;
3. Deliver strong supervision;
4. Deliver effective compliance and enforcement programmes;
5. Deliver effective public education programmes;
6. Operate an efficient, accountable organisation;
7. Support and promote the development of a regional securities market in the Eastern Caribbean Currency Union;
8. Support and promote financial sector stability; and
9. Cooperate with similar organisations for the effective regulation of capital markets.

The primary functions of the ECSRC are to:

• maintain the integrity of the ECSM;
• protect investors;
• promote market efficiency; and
• facilitate market development.

The law makes provision for any offences committed against the Securities Act. Notwithstanding, the commencement of criminal proceedings for a violation of the Securities Act, the law makes provision for civil action at the suit of a person who suffers pecuniary loss as a result of a contravention.

Saving involves the protection and preservation of money from loss. It is the process of putting cash aside in extremely safe and liquid (meaning they can be accessed in a very short time) accounts. Investing, on the other hand, is the process of using money to purchase an asset that you think will generate an acceptable return over time. This however involves risk which may result in loss.

Some of the ways in which the ECSRC serves to protect investors are:

• Monitoring the ECSM to ensure that licencees conduct their business in full observance of their fiduciary obligation to their customers; and
• Ensuring that licensees (companies and individuals) who advise investors and provide securities investment business services adhere to the Standards of Conduct prescribed in the Securities Act and its accompanying Business Conduct Regulations.

A potential investor should check with the regulators (domestic and offshore) in the territory to determine if an investment opportunity is recognised and regulated. In addition, it may be considered prudent that persons/entities be suspicious about unsolicited emails, phone calls, letters, etc. that offers investment advice about products or services. If necessary, contact a lawyer, licensed broker dealer or licensed investment advisor to conduct research on the investment opportunity.

Each country has enacted the Securities Act, which governs the securities market in the Eastern Caribbean Currency Union. In addition, there are subsidiary legislation in the form of Regulations and Rules. The purpose of the laws is to provide protection of investors in securities through a regional Eastern Caribbean Securities Regulatory Commission (ECSRC), by regulating the securities market, exchanges and persons engaged in securities business, and by regulating the public issue of securities and to provide for related matters.