SEC revokes licence of 53 fund management companies

The Securities and Exchange Commission (SEC) has revoked the operating licences of Gold Coast Securities and some 52 other investment companies.

According to SEC, the revocation of the licences is to protect the integrity of the securities market and investors.

In a statement SEC said, “These actions were taken pursuant to Section 122 (2)(b) of the Securities Industry Act, 2016 (Act 929 or “the Act”) which authorities the Securities and Exchange Commission to revoke the licence of a market operator under any of the following circumstances:

(a) If it is wound up;

(b) It ceases to carry on the business for which it was licensed;

(c) If the Commission has reason to believe that the licensed body or any of its directors or employees has not performed its functions or the functions of directors efficiently, honestly and fairly;

(d) If the licensed body contravenes or fails to comply with a condition or restriction applicable in respect of the license or any other provision of Act 929; and

(e) If the licensed person fails to commence business within 6 months of being granted a licence.”