IPSA is an non-profit non governmental organization that is created with aims and objectives of providing adequate protection to the South African Investing public, to maintain order on our Markets, to promote fairness and efficient Markets and to facilitate investor participation and Capital formation. South Africa is a developed economy, the economic hub of Africa, it is therefore in the interest of South Africans and Africa as a whole that the South African economy is sustainable and there is growth as economic growth produces Jobs, job security, business sustainability which results in better standards of living which again addresses and balances the economic disparities created by the legacy of our past.
In the world of investments, one requires to have proper understanding of how the investments schemes work or people do lose money.
The basic principle and idea is all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the FSB and the JSE requires public companies to disclose meaningful financial and other information to the public. This provides a common pool decisions of whether to buy, sell, or hold a particular security. it is there through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions. however , the South African investment industry does not provide adequate information, education, protection and enforcement to the investing public
IPSA is a non profit non governmental organization , its main goal and objective is to provide the South African public with free and accessible investor information, education, Protection and enforcement with an aim of achieving better, fair and more efficient capital markets.
There are currently agencies that have been mandated to ensure that there is compliance with the current Regulation and legislation in the Securities industry and that, the investing public is protected from any fraudulent activities that occur daily on the Market. These include
- The Financial Services Board. (FSB).Securities Regulation Panel. The office of the Register of companies. The Johannesburg Stock Exchange (JSE) as an SRO.The National Prosecuting Authority.The Department of Justice (The DOJ)
The general feeling is that some of these organizations are not as effective as they ought to be, at times they have been called toothless dogs, there are a number of reasons that contributes to this which includes:Inadequate legislation or laws that are in line with international standards Less expertise and understanding due to the complexity of the securities and investment industry.Less ability to enforce existing laws and regulations due to legal limitation. (Extra Territorial Jurisdiction matters)
It is therefore very important to understand the role of IPSA as a non-governmental, non-profit organization that in an effort to promote capital formation through financial and Capital Markets through public participation as part of economic growth, IPSA works hand in hand with these relevant organizations, agencies and entities in order to achieve its aims and objectives.
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