29.9 C
Accra
Tuesday, December 7, 2021
No menu items!

Public warned against patronising unlicensed financial Investment Schemes

Must Read

Take advantage of Planting for Export and Rural Development

By Razak BABA. Farmers in the Adansi North District of Ashanti have been advised to take advantage of the Ghana...

Aung San Suu Kyi’s jail term, now two years

Source: Bloomberg. Myanmar’s military regime on Monday reduced Aung San Suu Kyi’s jail term to two years after a special...

Food Safety & Street Food Vending

Story by: Rebekah Awuah rebekahawuah@gmail.com Street food is everywhere and in any country of the world. It is any food ready...
The Security and Exchange Commission (SEC) Thursday cautioned the public against patronising unlicensed financial investment schemes and products, which are being marketed through various media forms, including electronic, outdoor and mass media advertising.
 “Operators of these unlicensed financial investment schemes are in serious breach of various provisions of the Securities Industry Act, 2016 (Act 929) and are warned to close down or risk being caught on the wrong side of the law,” the Commission said in a statement, issued in Accra.
“The unique selling proposition of these schemes and products is the unreasonably high rates of return or interest per month or year promised the investor public,” it noted.
“Some of the guaranteed returns range from 6%, 10%, 20%, 40% and even as high as 70% a month translating into, 72%, 120%, 240%, 480% and 840% a year respectively.
“Some of these high rates of promised interest are surprisingly dollar denominated. Proper disclosure on risk and ability to pay are not made by these entities.
“Offering such high guaranteed returns, non-disclosure of risk and ability to pay are tell-tale features of ‘Pyramid’ and ‘Ponzi Schemes’ where new or fresh money deposited by clients are essentially used to pay previous depositors since there is no real underlying investment in the first place”.
The SEC explained, that after a while, the pipe-line for fresh deposits or investments of these companies usually dried up, leading to widespread default culminating in loss of the money supposedly invested by unsuspecting depositors or investors.
 “The high rates of returns are used as a bait to get the public to fall for the scam. A promise of high returns is in essence a guarantee of high risk which is typically the stock in trade of Pyramid” and “Ponzi Schemes”. High risk means you could lose your entire principal”.
It, therefore, advised the public to report any such Schemes and entities directly to it on its Toll free number: 080010065 or main line: 0302 -768970 – 2; or contact it on its website www.sec.gov.gh.
“The SEC is not out to destroy anyone’s business. It is only committed to its statutory mandate to protect the interest of investors,” it explained.
The Securities and Exchange Commission (hereinafter referred to as “SEC”) is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to protect investors and the interest of the general investing public.
The Act, among others things, specifically mandates the SEC to ‘promote the orderly growth and development of an efficient, fair and transparent securities market, in which investors and the integrity of the market are protected.’
SourceGNA

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Take advantage of Planting for Export and Rural Development

By Razak BABA. Farmers in the Adansi North District of Ashanti have been advised to take advantage of the Ghana...

Aung San Suu Kyi’s jail term, now two years

Source: Bloomberg. Myanmar’s military regime on Monday reduced Aung San Suu Kyi’s jail term to two years after a special court found her guilty in...

Food Safety & Street Food Vending

Story by: Rebekah Awuah rebekahawuah@gmail.com Street food is everywhere and in any country of the world. It is any food ready to eat food or beverage...

Private sector central to Ghana-Guyana partnership success – VP Bawumia

By Mercy Darko The success of the growing strategic partnership between the governments and people of Ghana and Guyana would hinge to a very large...

Rural Women in Upper West benefit from Unilever PLC’s “Songtaa” Project for better livelihoods

By Emmanuel Mensah-Abludo A Women empowerment project of Unilever Ghana PLC known as "Songtaa" has been launched in Wa. The first round of the initiative was...

More Articles Like This