Regulatory Alerts2015-03-31
Application for Mutual Fund Schemes
The Securities and Exchange Commission of Ghana mandates that applications for mutual fund licenses, including renewals, must be submitted directly by the company’s directors rather than appointed fund managers. This directive, effective immediately under Section 36A(1) of the Securities Industry (Amendment) Act, 2000, corrects prior practice where fund managers filed applications on behalf of the companies. Licensed operators are required to comply with this procedural requirement for all new and renewed mutual fund scheme licenses.
SECURITIES AND EXCHANGE COMMISSION Location: No. 30 3rd Circular Road Cantonments, Accra P. O. Box CT 6181, Cantonments, Accra, Ghana Tel: +233-30-2768970-2 Toll Free No. 080010065 Fax: +233-30-2768984 E-mail:info@sec.gov.gh Website: www.sec.gov.gh
MARKET GUIDANCE NOTES
CIRCULAR NUMBER: SEC/CIR/003 /03/15
APPLICATIONS FOR MUTUAL FUND SCHEMES
This Market Guidance Note is issued pursuant to Part IV of the Securities Industry Act, 1993 (PNDCL 333) as amended by the Securities Industry (Amendment) Act, 2000 (Act 590) which requires that applications for licences of Mutual Funds should be made by the directors of the Mutual Fund.
The Commission has noted that applications for licences to operate mutual funds are being made by managers of the funds instead of the directors. With immediate effect, the Commission shall no longer accept applications for the operation of mutual funds made by a fund manager appointed by the mutual fund company, contrary to Section 36A (1) of Securities Industry (Amendment) Act, 2000 (Act 590), which states that “the directors of a company shall apply for the licence to operate as a mutual fund”.
Applications for the renewal of Mutual Fund licences shall also be made by directors of the company.
SIGNED
DR. ADU A. ANTWI DIRECTOR-GENERAL
ISSUE DATE: MARCH 31, 2015
DISTRIBUTION ALL LICENSED OPERATORS