SEC orders Menzgold to suspend ‘illegal’ trading operations ….But management says it’s still open for business

Menzgold

Menzgold

The Security and Exchange Commission (SEC) has directed Menzgold Company Ltd to suspend the trade in gold collectibles with immediate effect, describing the company’s activity as an illegality and a threat to investors.

 

According to a statement signed by the Deputy General of SEC, Paul Ababio, Menzgold has been trading in gold collectibles with guaranteed returns to clients without proper license from the SEC.

 

The statement said the business of purchase and deposit from the public and contracts issued with guaranteed returns with clients was a capital market activity under the Securities Industry Act, 2016.

 

However, it said Menzgold had contravened section 109 of Act 929 of the Securities Industry Act, 2016 by trading in gold collectibles without the required license

 

“Accordingly, the SEC hereby directs Menzgold Company Ltd to shut down immediately the business of trading in gold collectibles with guaranteed returns to clients which constitutes, in essence, dealing in securities with neither the necessary license nor disclosures authorised by the SEC”

 

“No new contracts should be created and all advertising of the investment business halted with immediate effect. Failure to comply with this directive will lead to the SEC employing other relevant measures under the law to enforce compliance,” the statement said

 

In response to the directive, Menzgold, in a release, said neither Menzgold as a business entity nor any of its products had been shut down and added that Menzgold had forwarded the directive to its lawyers for the appropriate action to be taken.

 

The company urged its customers to be calm while it brought the matter to a logical conclusion and accused the SEC of leaking out details of confidential meetings between Menzgold and the SEC.

 

“This needless leak believed to be coming from the SEC is, to say the least, in very bad faith and distasteful, as it defeats our confidence in the body and an affront to cooperation. We totally condemn it”

 

“As a law abiding organisation, we have referred the matter to our lawyers and rest assured, the right action shall be taken,” the statement said.

By Times Reporter

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