[Ghana] Securities and Exchange Commission tightens industry regulations
The Securities and Exchange Commission (SEC) is in the process of unveiling higher standards for the securities industry in keeping up with the latest international development and to ensure the growth of the sector.
Alexander Williams, Acting. Director General of SEC said: “Beginning this year, the country is going to enjoy an exciting and challenging capital market. After a long run, the Securities Industry Act 2016 was passed. Among the exciting things to look up to, he said, is the introduction of new standards and guidelines.
The standards that the Commission, through the Act, is going to set for the capital market operators will be very high and demanding. While setting those standards, the Commission will also provide the environment to promote the development and growth of the capital market. For instance, to ensure good corporate governance, the Commission will have training programmes for directors and company secretaries of all newly licensed capital market operators.”
The passage of the Securities Industry Act, last year, brings with it the required legal framework to allow all forms of securities to be licensed. The Commission has also be given the operational independence it needs for efficient and effective regulation of the industry.
The Collective Investment Schemes (CIS) market has enjoyed a steady growth over the years. At the end of 2014 there were 42 licenced schemes made up of 18 unity trust and 24 mutual funds, and at the close of 2016 there were 53 licenced schemes.
The Wealth Fund (W-Fund) and the Entrepreneur Fund (eFund) are collective investment schemes that pool resources of the general public and manage them on their behalf by Crystal Capital, with the objective of providing capital growth, regular income while preserving capital and maintaining liquidity by investing in a diversified portfolio of high quality asset classes, pre-approved by SEC.
The eFund is targeted at entrepreneurs and as well as organisations that support entrepreneurial initiatives, while the W-Fund is designed for individuals and corporations to enable them make regular income on their investments.
“A buoyant capital market is critical in helping to develop structured products, build the right understanding and investment culture among our people, to help mobilise significant investment funds as well as develop the right leverages to boost the economy,” said Martin Ofori, Chief Executive Officer of Crystal Capital Limited.
“We have the requisite skill and space to establish funds as well as leverage existing funds to boost the economy. As a firm with strong expertise in workings of our economy and the financial system, we better appreciate their interrelations with the real sector, and are very well-positioned not only to proffer professional advice, but also to be your partner in charting the course of business,” Mr. Ofori added.