One of the objectives of SECZ is to provide high level of investor protection; as such SECZ has put in place various investor protection mechanisms which include:
- Regulation of all, SECZ monitors activities and flushes out unscrupulous players. Continuous supervision of capital market players ensures that only institutions that uphold high ethical standards are allowed to operate.
- Establishment of an independent Investor Protection Fund – SECZ facilitated the establishment of the Investor Protection Fund that is meant to provide an additional layer of protection for investors and offer some reimbursement for losses suffered as a direct result of a licensed player becoming insolvent.
- Existence of a Guarantee Fund – The guarantee Fund that is administered by the Securities Exchange is meant to guard against settlement failures by the members of the exchange (i.e. securities dealers).
- Professional Indemnity cover – All capital market players are mandated to have this insurance cover to cover against losses resulting from negligence or dishonesty of any of the staff of the licensed player.
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