SECZ, as the regulator, is responsible for investor protection. Below are some of the tips to minimise the risk associated with capital markets: 1. Capital markets offer a wide range of products; get to know the ones on offer. Different investment products carry varying risk profiles; pick your choice based on your risk appetite.
2. Never invest in a product that you do not understand; get to know the costs and benefits associated. Never sign documents you have not read carefully.
If you are not well versed with capital markets issues, seek professional advice from licensed investment manager / advisor; its part of their duties.
3. Licensed market players ought to
know you as their customer, take all the necessary steps to know them as your intermediaries too. Deal only with licensed market players.
4. Be honest when a licensed market player asks for information about your investment objectives and personal finances.
They will rely on this information to make appropriate investment recommendations for you. This information is kept confidential.
5. Always remember you have a role to play as a shareholder! Keep abreast of material information around your investments. Remember, the stock market trading rule: “Caveat Emptor” meaning “Let the Buyer Beware”.
Therefore, monitor your investment or ensure your professional advisor/manager does that on your behalf. That’s the reason you pay them.
6. Always bear in mind that any investment has short-term aberrations that will even out in the long-term, so think long term. But remember, past success of a particular investment is no guarantee of future performance.
7. Work closely with your regulators (SECZ, ZSE) thereby causing rules to be improved where necessary and use them to assert your rights.
If aggrieved in any way by the action of a licensed player, contact the regulators for recourse.