In the wake of the brouhaha surrounding Menzgold – with which a lot of Ghanaians have investments – and the collapse of other financial institutions in the past, the Securities and Exchange Commission has said Ghanaians will have to be a lot more careful when they invest.
Its Deputy Director General, Paul Ababio, said investors must weigh the risk factors involved before putting their money into any form of investment scheme.
Speaking to B&FT on the sidelines of 2018’s edition of the Capital Market Week celebrations themed ‘Transforming the Capital Market through Better Corporate Governance’, Mr. Ababio revealed that companies that are not operating under their intent of registration will be brought to book.
He said: “Some of these businesses don’t even state that they’re going to be doing investments management. So, one of the mechanisms we are looking at is if we find a business is operating in contravention of its particulars, we will have to communicate this for the Registrar-General to act. We need to strengthen the formal mechanisms in terms of how we act on companies that are in authorised industries or regulated business”.
He noted that there are different levels of involvement by the Commission when it comes to reclaiming lost monies due to bad investments.
“Even though there are levels of involvement as a regulator, in certain instances we also mediate. We come in to call for a hearing as to what the issues are. If there are issues of fraud, we make such declarations against them and seek some resolution. Because the other person has led to a default and admits to having failed in their obligation, we as a regulator can also punish such behavior; and the individual can also go to court for restitution,” he said.
In his speech, Mr. Ababio noted that the Capital Market Week celebrations will focus intensive public awareness on activities of the capital market, including programmes and seminars to educate the general public about the capital market’s dynamics.
It also seeks to identify long-term measures to safeguard the industry, as well as increase public confidence in the sector.
The week-long celebration is also expected to bring together experts from the financial services sector to deliberate on how to address the crisis-hit sector.