the ROLE AND FUNCTIONS OF THE ECSRC

The Eastern Caribbean Securities Regulatory Commission (ECSRC) commenced operations on 19 October 2001 following the signing of the ECSRC Agreement on 24 November 2000 and acceded to by Anguilla on 26 October 2001, among the participating governments of the member territories of the Eastern Caribbean Currency Union (ECCU), which comprise Anguilla, Antigua and Barbuda, the Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia, and St Vincent and the Grenadines. The ECSRC Agreement gained the force of law with the enactment of the Securities Act, 2001 in all the ECCU Member Territories. The establishment of the ECSRC also coincided with the commencement of the operations of the Eastern Caribbean Securities Market, the first regional stock exchange in the Eastern Caribbean.

The ECSRC’s primary responsibility is to regulate the Eastern Caribbean Securities Market (ECSM), securities exchanges, persons engaged in securities business and the public issue of securities in the eight member territories of the ECCU. The objectives for the regulation of the securities market are to maintain the integrity of the ECSM, protect investors, promote market efficiency and facilitate the growth and development of the ECSM. These objectives are achieved by the ECSRC through the enactment of legislation, the establishment of the appropriate regulatory and supervisory frameworks and the certification, licensing and regulation of market participants.

OUR MANDATE: According to the ECSC Agreement, the functions of the Commission are to:- i) license any person engaged in securities business and to monitor and supervise the conduct of such business by a licensee; ii) promote investor protection through promotion of the highest standards of professional and other activities within the securities market; iii) maintain effective compliance and enforcement programmes supported by adequate statutory powers; iv) promote the growth and development of the capital markets.

OPERATIONS:

The daily operations of the ECSRC are carried out by a Secretariat which is located within the headquarters of the Eastern Caribbean Central Bank and is operated and managed by staff members who are assigned from the Eastern Caribbean Central Bank. The ECSRC Secretariat is managed by the Secretary who is appointed by the Commissioners and is divided functionally as follows to achieve the ECSRC’s mandate:

• Management and Administration Division manages the daily operations of the Commission. The Secretary coordinates all activities of the Commission including communicating with market participants, and allocating, reviewing and approving technical and administrative work performed on behalf of Commission.
• Corporation Finance Division reviews and has general oversight of corporate disclosure of information to the public. Reporting issuers (public companies, other issuers of securities) are required to comply with public disclosure regulations. The disclosure by Reporting Issuers must be made initially on the sale of securities and then on a continuing and periodic basis.
• Market Regulation and Surveillance Division establishes and maintains appropriate standards for fair, orderly and efficient securities dealings in the ECSM. The division reviews applications for licences of all prospective market participants and makes recommendations to the Commission, conducts training and examinations of individual market intermediaries, and performs ongoing supervision and onsite examination of market participants
• Legal, Compliance and Enforcement Division drafts laws, rules and regulations for the fair and orderly dealing in securities on the ECSM, advises the Commission and assists with the interpretation of and compliance with the laws and rules in force in the ECSM

LICENSEE CERTIFICATION PROGRAMME:

Since 2002, the ECSRC, in collaboration with the Eastern Caribbean Institute of Banking and Financial Services (ECIB) and the ECSE, has been administering the Eastern Caribbean Securities Market Certification and Examination Programme (ECPE), for the certification of proposed licensees in the ECSM. The ECSM Certification Programme is intended for individuals with at least a first degree in finance or similar certification or commensurate years of experience within this discipline.

Success in the certification examinations is a prerequisite for obtaining a licence to operate as a Principal, Representative or Investment Adviser in the ECSM. The certification examination consists of two parts: A theoretical section administered by the Commission and a practical/system application section administered by the ECSE.

Applicants for an Investment Adviser licence are only required to write the Part I of the examination.

Registrants may choose to attend the entire ECSM Certification Programme which comprises the workshop and examination or may register for either the workshop or the examination.