Investor protection is a top priority for the Securities and Exchange Regulator of Cambodia (SERC) – the authority in charge of monitoring, supervising and developing the sector in the Kingdom – one the body places the greatest importance.
Strict laws and regulations are in force in the securities sector to protect investors, with many effective mechanisms having been established.
These include the development of legal frameworks on regulating and supervising the key players and participants in the securities sector, as well as on the financial instruments classified as securities.
These legal frameworks also pertain to the continued supervision of those conducting business and providing services in securities sector, as well as dissemination to the public on rehabilitation and liquidation proceedings with timely disclosures.
They also concern inspections, the receiving of complaints and dispute resolutions, investigations and law enforcement, as well as the apprising of investors of legal matters, investment risks and illegal schemes through the SERC Alert Telegram channel.
Strict laws and regulations have been developed and promulgated to regulate the securities sector.
And the SERC has adopted a number of regulations for regulating and supervising those operating in the industry, notably the Law on the Issuance and Trading of Non-Government Securities, and the Sub-Decree on the Implementation of the Law on the Issuance and Trading of Non-Government Securities.
No legal entity or individual is permitted to conduct business or operate in the securities sector without having adopted the laws and regulations in effect.
These include securities firms, representatives and depository operators, central counterparties, clearing and settlement facility operators, derivative brokers, issuers, fund management companies, and other key players and participants.
This is to ensure efficiency, transparency and accountability in the securities market, and especially to ensure investors are best protected.
The laws and regulations can be downloaded from the SERC website at https://www.serc.gov.kh/khmer/index.php.
The meeting of a number of stipulations is needed before getting a licence, accreditation and/or approval from the SERC to conduct business operations and provide services in the securities sector.
These include financial requirements as well as those regarding management structure, human resources, technology systems, location, minimum registered capital, securities bonds and corporate governance, among others.
Prior to receiving a licence, accreditation and/or approval, all applicants undergo a comprehensive review as to whether they comply with the strict requirements.
And following the granting of a licence, accreditation and/or approval, the SERC continues to check their compliance with the laws and regulations relating to the sector.
The SERC actively monitors all operators in the securities industry for possible misconduct and activities affecting the interests of public investors to ensure the highest levels of confidence.
Prepared by: Securities and Exchange Regulator of Cambodia, Legal Affairs Department.
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