News T&T investment schemes increase to $34b

(TTG 09/04/2006) Port of Spain - Funds under management in collective investment schemes at the Securities and Exchange Commission (SEC) increased to $34 billion by the end of 2005, SEC chairman Osborne Nurse revealed on Thursday, during the formal opening of the new headquarters on Dundonald Street.

“Much of the Commission’s regular work involves the registration of new securities issues,” he explained. “In the financial year ended September 2005, we registered 21 new market participants and 100 new securities issues including 10 new collective investment schemes.

“Of these new issues, 45 were equity issues, including management and employee stock ownership plans, accounting for 130 million shares valued at $837 million.”

He said there were also 45 issues of debt and debt derivative securities accounting for $13.8 billion.

“All this signifies a very active and expanding capital market notwithstanding the fact that activity on the stock exchange has been very slow during the year with the level of trading, prices and values and the Composite Index all showing declines during the year,” said Nurse, whose three-year term of office expires soon.

He said it was this expansion and activity in the capital market that caused the need for expanded facilities consisting of several additional meeting rooms, including one to accommodate 40 persons.

“These are important resources that enable us to maintain proper contact and dialogue with our stakeholders and to provide the level of customer service that is expected of us in the future,” said Nurse.

He said the Commission had been active in ensuring that registrants were complying with their continuous reporting obligations under the ACT by filing statements and Annual Reports.

“In 2004 the Commission initiated enforcement action that was completed in 2005 that led to the imposition of penalties totaling $1.2 million on 62 obligations,” he said. “We continue to monitor the level of compliance with filing obligations and continue to be concerned that the level of compliance is still unsatisfactory.”

He said the Commission had begun action in three or four cases where notices of material changes or facts were filed late or not at all.

“We have just concluded the formal investigation into matters related to the trading of Trinidad Cement Limited shares in 2002, the report having been delivered to the general manager (Terrence Clarke) today,” said Nurse. “It is left now for determination to be made as to what, if any, further action may be required. At the same time we embarked in 2005 on two additional investigations and are awaiting the final reports on these two.”

A new draft for a new Securities Act 2006, which includes the recommendation for the appointment of temporary commissioners, had already been submitted to the Minister of Finance, he said.