Banking cleanup: All depositors will be paid – SEC Boss
Rev. Daniel Ogbarmey Tetteh

The Administrative Hearing of the Securities and Exchange Commission (SEC) will by the close of tomorrow rule whether CDH (now Inter Market), Gold Coast Securities (now BlackShield), Legacy Capital, among others will get back their licenses that were revoked last year for failure to operate within the Securities and Industries Act, 2016 (Act 929).

According to Deborah Mawuse Agyemfrah, Deputy Director of Legal at the SEC, these companies are being given favorable hearing after appealing against the revocation of their licenses by the SEC.

However, the favourbale hearing doesn’t guarantee restoration of their licenses.

Speaking on a number of issues arising as a result of the clean-up of the securities industries where about 53 fund management firms’ licenses were revoked, Mrs. Agyemfrah said the SEC will forward to the Attorney General names of companies, shareholders and directors who flouted the securities law.

This is after the forensic auditing of the accounts of the 21 firms.

“Before we did the revocation, we did forensic auditing of 21 companies who had issues. All the auditing we did is not just a fluke; we will forward the auditing report to the Attorney General who has the power to prosecute. SEC doesn’t have the power.

“But the forensic auditing done, report being done, validation being done, the work of the Official liquidator work with regard to the funds will end up at the Attorney General”, she said on Peace FM’s Morning Show Programme.

Llocked-up investments of the collapsed fund managers is believed to have shot up to GHS12 billion.

This was after validation of the investments by the collapsed 53 fund managers across the country.

Mrs. Agyemfrah advised customers who are yet to pick forms for validation of their investments to do so at PwC since it is very important.

She explained further that the official liquidator will traced where the locked-up funds ended-up at, adding, “They are still searching for where the funds were kept; those who invested should have asked questions about where the companies were going to get monies to pay the huge interest they were offering before accepting. One of the pillars of capital market is honesty and fairly.”

She however said government as part of its social intervention programme will make available funds to settle the investors their locked-up funds.

Fast forward, Mrs. Agyemfrah said several reforms are taking place to ensure a stable securities industry. This includes significant increment in the minimum capital and new guidelines for operating firms.

In November 2018, the SEC withdrew the licenses of 53 fund management companies.

They include Beige Capital Limited, Brooks Asset Management Limited, EM Capital Limited, Frontline Capital Advisors Limited, FirstBanc Financial Services Limited, Ideal Capital Partners Limited, Liberty Asset Management Limited, Liberty Asset Management Limited and McOttley Capital Limited.

HFC Capital Partners Limited, Serengeti Capital Limited and Verit Investment Advisory Limited however ceased operations.

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