Critically understand products, returns offered by capital investment firms – SEC to investors

Tue, 30 Nov 2021 Source: www.ghanaweb.com

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Products advertised by investment firms must be scrutinized before engagement

There are still a number of unlicensed investment products on the market

The SEC is the regulator for the securities market

The Securities and Exchange Commission has admonished prospective investors to critically understand products and returns promised them by capital market investment companies.

According to Director-General of the Commission, Daniel Ogbarmey Tetteh said this is necessary for investors prior to them making an investment decision, especially for collective investment schemes.

Speaking at the launch of a collective investment scheme by Tesah Capital, the SEC Director-General called on all investors to do due diligence before making a decision to invest.

“You [investors], must seek to understand the [investment] products. Please don’t say that oh, my brother or my sister or my aunty says it is good and so I’m also committing resources, seek to understand the products. Where I sit as a regulator, we get complaints especially around this time when all kinds of unscrupulous people are coming up with schemes to scam people,” Ogbarmey Tetteh said.

“…And they’ll tell you that they’ll give you 10 percent every day, every week and some ridiculous offers. The issue is do you understand what they’re doing to be able to prompt you on those returns? You need to take time to understand but if you don’t do that and you get scammed then it means you’re shirking your responsibilities,” he cautioned.

The SEC Director-General further called on investors not to fall prey to any kind of investment schemes offering highly questionable returns and products.

The Securities and Exchange Commission was established by the Securities Industry Act, 2016 (Act 929) with the objective to regulate and promote the growth and development of an efficient and transparent securities market.

SEC on the other hand also ensures that investors on the market are well-protected.

Source: www.ghanaweb.com
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