The Securities and Exchange Commission, SEC, has debunked social media reports misinterpreting the classification of its licensees on its website as unsafe to invest in.
At a news conference in Accra, the Director General of SEC, Rev. Daniel Ogbarmey Tetteh said the classification only indicates status of licensees that have various regulatory issues and unresolved complaints.
The Commission he noted has introduced measures to ensure vibrant asset management. He said SEC is using information technology to provide adequate information which will assist the public in making investment decisions.
“SEC has introduced corporate governance guidelines, investment guidelines and financial resources guidelines to ensure properly capitalized and we’ll governed asset management firms. Supervision and enforcement is also being strengthened to ensure that the licensees deliver on their mandate to the investing public. SEC is working at a quicker access by the investing public to information on our licensees with the help of information technology to assist the investing public to make informed decisions rather than being misled by unsubstantiated claims in the social media.”
Rev. Tetteh reiterated that, licensees who have unresolved complaints are being monitored by the commission.
“Some licensees have been suspended from the market, others have voluntarily surrendered their licenses while others are at various stages With regard to resolving the client complaints/regularly issues. Once they are resolved, their classification will be updated accordingly. It is therefore inaccurate and wrong to universally categorize all those in red as companies that are safe to invest in as the description of their status is clearly indicated by the name of the licensees.”
The Deputy Director General of SEC, Paul Ababio, called on fund managers to exercise due caution in making investment decisions. He said clients must be informed about the risk attached to the portfolio they wish to invest in.