Regulatory Alerts2015-03-31
Returns on Clients Investments
The Ghana Securities and Exchange Commission mandates that licensed Fund Managers cease accepting fixed deposits and guaranteeing returns on client investments. All guaranteed-return investments must be disinvested and properly allocated according to permissible activities by September 2014. Non-compliant Fund Managers face applicable sanctions under the Securities Law.
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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/002/03/15
RETURNS ON CLIENTS’ INVESTMENT
At the Capital Market Forum held on 30th April, 2014, the Securities and Exchange Commission advised that the role of Fund Managers is to offer advisory services and provide fund management services for a fee. The activities that can be undertaken by Fund Managers have also been communicated in a circular to the market on Permissible Activities of Fund Managers.
Fund Managers are not to accept funds on fixed deposits, guarantee returns on client investments.
The Commission directed that all investments received from clients with guaranteed returns be disinvested by September, 2014 and properly placed in accordance with the law and the circular on Permissible Activities of Fund Managers.
Any Fund Manager found not to have complied with the above directive shall be liable to the appropriate sanctions under the Securities Law.
SIGNED
DR. ADU A. ANTWI DIRECTOR-GENERAL
ISSUE DATE: MARCH 31, 2015
DISTRIBUTION ALL LICENSED OPERATORS