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Business - November 20, 2020

Securities and Exchange Commission adopts enforceable guidelines to protect investor

Pastor Daniel Ogbarmey Tetteh, director general of the Securities and Exchange Commission (SEC), said the committee is taking pragmatic measures to strengthen capital markets and protect investors’ funds.

These measures include the issuance of new guidelines for market operators and the transition from a compliance-based framework to a risk-based approach to take care of potential areas that may interfere with capital markets.

Rev Tetteh spoke at a forum dubbing investors with the theme “Ensuring Investor Protection.”

The second contact of the series with stakeholders is to resolve issues affecting industry participants and enable the SEC to provide timely information to the public and obtain feedback to improve performance to fulfill its responsibilities.

He said that the SEC has strengthened market education for the investing public and market operators, and strengthened internal human resource capabilities.

He said that the establishment of the Financial Stability Board will help bridge the gap in this area because various regulatory agencies can share information.

The Director-General stated that the SEC has begun the initial procedures for establishing an investor protection fund and is embarking on a digital agenda to speed up the analysis and use of data and to better position the committee to protect investor funds.

Other actions include amending the licensing requirements of fund management companies, including increasing minimum capital requirements to better protect investors, ensure strict adherence to appropriate and appropriate principles, promote market development and strengthen supervision of the committee.

He said that the new enforceable guidelines will ensure better protection for investors.

Ms. Jemima Oware, the official liquidator of the Fund Management Company (FMC), said that since the start of the collective meeting from September 15, 2020 to November 12, 2020, 4,154 investors have signed the assistance plan.

She said that as of November 12, the value of claims from contracted customers was 776 million guilders.

Mrs Oware, who is also the Registrar-General, said over 2,220 claimants were paid with a value of GH¢257 million, adding that GCB Capital was now making payment to investors who had been signed on accepting the government bailout package.

She said 10 more companies were gazette for liquidation, adding that the winding up of companies was characterized challenges such as the complex and bureaucratic court processes, inability to locate some companies, and inaccurate contact details.

Other challenges were non-confirmation of claim validations and dispute over validated claims.

“In the light of all these challenges of the bureaucratic court processes, it is welcoming news that the government has authorised the partial bailout for all remaining customers of the revoked FMCs, pending the outcome of the liquidation petition orders,” she said.

She also assured investors that the office of the Official Liquidator would expedite the process to bring the much-needed relief to investors and creditors.



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