The Securities and Exchange Commission of Zimbabwe (SECZ) established in terms of the Securities Act (Chapter 24:25) has established the Investor Protection Fund (hereinafter called ‘’the Fund’’), as provided for in terms of the Act, for the purpose of providing compensation to investors for losses suffered as a direct result of a financial collapse of a market player licensed by SECZ being unable to meet its liabilities through insolvency, malpractice or other causes. Thus an investor will have recourse to the Fund where a SECZ licensed entity is unable, or likely to be unable, to pay its liabilities, in the event of (a) cessation of trading, or (b) such firm having insufficient assets to meet its liabilities or (c) insolvency declared by a competent court in Zimbabwe.
The management of the Investor Protection Fund is vested in a Board of Trustees which is responsible for the administration and management of the Fund. The Board consists of six Trustees of whom:
a) one shall represent the Commission;
b) one shall represent the Zimbabwe Stock Exchange;
c) one shall be a retired judge of the High Court or the Supreme Court’ or a person qualified to be a
judge of such court;
d) one shall be a certified chartered accountant or a chartered accountant with at least 10 years
experience appointed by the Public Accountants and Auditors Board;
e) one shall represent the Zimbabwe Association of Pension Funds and,
f) one shall represent the Ministry of Finance.