Director-General of the Securities and Exchange Commission (SEC), Daniel Ogbarmey Tetteh, has admonished credit unions to remain compliant and pick-up lessons from the financial sector clean-up exercise.According to him, this would enable credit unions operating in the country to avoid falling prey to a reoccurrence of the clean-up exercise that affected various financial institutions.
Speaking at the biennial conference of the Ghana Co-operative Credit Unions Association (CUA), the Director-General of SEC explained, “a regulated activity means compliance with standard, rules, and procedures. I want to suggest that you must be big on compliance as it is germane to the success of financial institutions.
“Ethical behaviour must take the front seat in the financial industry, and it is important to help people to become compliant by defining clearly, the standards of ethical behaviours, as well as introducing a regime of sanctions against unethical behaviour,” he added.
Daniel Ogbamey Tetteh on his part was confident that depositors of collapsed financial institutions whose funds have been locked-up due to the clean-up, would soon receive their monies.
Government through the SEC in November this year announced a partial bailout intervention scheme to bring relief to affected clients of Fund Management Companies (FMCs).
The bailout will involve the payments of up to GH¢50,000 each, to customers of FMCs whose licenses have been revoked but whose liquidation processes in the courts have not been concluded.
Meanwhile, the Amalgamated Mutual Fund PLC (The AM Fund) has begun cash payments under the partial bailout scheme to clients of the FMCs for which the Official Liquidator is yet to obtain Liquidation Orders from the courts.