The country’s four financial sector regulators have failed to publish their respective annual reports, raising concerns among industry experts and stakeholders alike.
Consequently, they warn that failure of the Securities and Exchange Commission (SEC), National Insurance Commission (NIC), Bank of Ghana (BoG) and National Pensions Regulatory Authority (NPRA) to publish their reports – in the same manner as they expect the institutions they regulate to do – could have dire implications for the country’s quest to restore confidence in the sector.
Some are of the view that it represents double standards and dampens confidence, while stifling the prospect of attracting much-needed foreign direct investment (FDI).
Professor John Gatsi, Dean-University of Cape Coast Business School, says it betrays cardinal principles of the financial sector such as transparency and soundness.
Financial institutions, especially those listed on the Ghana Stock Exchange, are expected to submit their audited statements by March 31. This year, they sought and were granted a one-month extension on account of the hiccups brought about by the domestic debt exchange programme (DDEP).
For a body which mandates that institutions under its sphere of oversight provide timely and accurate information, with the possibility of sanctions, this is a far from ideal situation a commentator has remarked.
These reports are crucial for evaluating the overall health and performance of capital markets, and they also provide insights into internal operations of the Commission itself.
Investors, shareholders and other stakeholders heavily rely on these reports to make informed decisions and assess the performance, risk exposure and regulatory compliance of companies within these industries.
In the absence of official explanations, speculation and conjecture regarding potential underlying issues have begun to circulate within the financial community. As regulators of the capital markets and insurance industry, the SEC and NIC play a critical role in ensuring the stability and integrity of these sectors.
Investors typically rely on regulators’ reports as their first source of information when considering investment opportunities, so this is an anomaly that should be rectified in the possible shortest time.
A change in legislation to compel them might become necessary if the situation persists.
