Over 700 complaints recorded over inability to access investment funds - SEC

Securities And Exchange Commission Ghana  Revocation Securities and Exchange Commission

Wed, 4 May 2022 Source: www.ghanaweb.com

SEC vows to crack the whip on recalcitrant fund managers

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Fund managers urged to refund investors monies,SEC

Securities and Exchange Commission SEC has bemoaned the numerous complaints the commission receives from customers who are unable to access funds after making the due redemption requests.

Deputy director-general responsible for Legal Affairs at the Commission, Deborah Agyemfra, made this disclosure while making submissions on the topic ‘Enhancing Investors’ Confidence: Critical Vehicle to Driving Economic Growth’ at the second edition of the Money Summit organized by the B&FT.

According to her, companies who are defaulting are not those which had their licenses revoked during the sector clean-up, but firms that have met new measures introduced by the SEC – including raising the minimum capital required for fund management firms to GHC2million from GHC100,000 as well as introducing Conduct of Business Guidelines which detail required qualifications for directors of the companies.

“At this point, we have over 700 complaints from investors who have their money locked up, and this is not from the bailout but from current companies; that saddens me because it shows some people, we give licenses to have let us down.”

She however stated that SEC is working to ensure that investors are able to redeem their investments when they want to.

“At the SEC, we will not sit there and have widows come with their children following them, looking for their school fees which are locked up; or someone who has a stroke and is sitting in a taxi and saying ‘I need my money. I look forward to a time when there will be no redemption complaints.”

“When people put their money in an investment scheme and they go back for it, they will be able to get their money because the people we give the licenses to understand the business and what they are doing,” she said.

While SEC ensures that fund managers perform their duties by safeguarding the funds of investors, the Commission urges investors to perform due diligence before engaging in investments.

“We will be very happy to see a day when investors are well-informed and asking the fund managers the right questions, and people can recognize Ponzi schemes afar and say: ‘This I know, and I will not go there. That will bring joy to us at the SEC,” she noted.

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Source: www.ghanaweb.com
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