SEC working with troubled fund management firms for payment - DG

The Securities and Exchange Commission (SEC) says it is working to ensure that individuals whose investments have been locked up with some troubled fund management companies are paid.

Reverend Daniel Ogbamey Tetteh, the Director General (DG) of the SEC gave the assurance at a press conference in Accra yesterday. He said in spite of the fact that some fund management companies were going through some difficulties, the securities and capital markets in Ghana were safe and urged the investing public to ignore the false information being bandied on social media to create fear and panic among the investing public.

“The situation of the securities and capital industries are not bleak as being peddled on social media.  Even though some fund management companies are facing challenges which we are helping them to resolve, there are a lot of good fund management companies around,” he said.

Rev Tetteh said some licences had been suspended from the market; others had voluntarily surrendered their licences while others were at various stages with regard to resolving the clients’ complaints and regulatory issues.

The SEC posted on its website that HFC Capital Partners Limited, Attai Capital Limited, Serengeti Capital Limited, Indigo Investment Management Limited, Verit Investment and Advisory Limited and Waxson Investment and Pension Management Limited had voluntarily requested to cease operations.

According to SEC, MEC-Ellis Investment Ghana Limited, Weston Capital Limited, Brooks Asset Management Limited, Kamaag Kapital Ghana Limited formerly Lifeline Asset Management  Limited, MAK Asset Management Limited, EM Capital Partners Limited, MET Capital Group Limited, Canal Capital Limited, Man Capital Partners Limited and Alphaa Cap Securities Limited  had regulatory issues to be resolved with the Commission.

 “Once they are resolved, their classification will be updated accordingly.  It is therefore inaccurate and wrong to universally categorise all those in red as companies that are not safe to invest in as the description of their status is clearly indicated by the licensees,” the DG said.

 “Supervision and enforcement is also being strengthened to ensure that the licencees deliver on their mandate to the investing public,” he said, adding that “SEC is also following due process to resolve complaints lodged with it against some of our licensees in accordance with the provisions of Act 929 and with the aim of achieving investor protection.”

The DG also said the Commission had started the process to review the minimum capital requirement for players in the securities market.

Responding to the challenges facing the embattled gold-dealership firm, Mensgold, Rev Tetteh said individuals who had invested in the company could not retrieve their investment, until some properties of the company were found and sold.

He said the company secured licence from the Minerals Commission to engage in gold trading but veered into investment which they did not have the licence to do so, adding that the company refused to provide information about their operations about the SEC.

By Kingsley Asare

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