No need for panic withdrawals – SEC calms investors

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The Securities and Exchange Commission (SEC) has cautioned investors against panic withdrawals, following the recent reforms in the financial sector.

“We are aware of some level of anxiety among a section of investors because of the recent reforms taking place within the financial system. We wish to reiterate that the objective is to produce sound market operators, stronger financial intermediation and financial inclusion and ultimately a more robust financial sector.”

“We wish to reiterate that there is no need for panic withdrawals as the Commission is committed to ensuring a sound, efficient and robust market where investors’ funds are protected”, a statement from SEC said.

SEC acknowledged that certain investors are unable to access their matured investments from its licensed Asset Management Companies (AMCs) or Fund Managers (FMs) due to some liquidity challenges.

It indicated that the Commission has instructed all AMCs/FMs to “put in place mechanisms to meet their obligations as they fall due to their clients, consistent with the terms and conditions of the investment contracts signed with them.

The Commission has also instructed all AMCs/FMs to put in place mechanisms to meet their obligations as they fall due to their clients, consistent with the terms and conditions of the investment contracts signed with them. Dissatisfied customers of these AMCs/FMs may lodge written complaints with the Commission

According to the SEC, it is engaging with stakeholders on efforts to improve liquidity in the industry.

As a result, it said the Commission has and continues to introduce regulatory measures to help ensure a stable, efficient, transparent and fair marketplace where investors’ funds are protected.

The statement said some of these measures includes holding AMCs/FMs accountable for honoring their obligations to their clients, the introduction and enforcement of corporate governance guidelines for operators in the industry including AMCs/FMs and higher minimum capital/liquidity requirements for AMCs/FMs and other operators,

Others are stringent licensing requirements, investment guidelines including restrictions on related party investments/guaranteed investments and streamlining of the Commission’s internal processes including through automation of processes to promote efficiency.

“There are well-run and sound licensed AMCs/FMs and investors can confirm by asking a few questions regarding their governance practices, their track record, staff turnover, any unresolved complaints and regulatory breaches. “The investing public is also encouraged to call our toll free line, 0800100065 or visit our website, www.sec.gov.gh, for any enquiries they may have” it said.

 

 

Source: The Finder


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Kennedy Mornah is an Award Winning Ghanaian Journalist with over two decades of experience in the Ghanaian Media landscape spanning the electronic, print and digital media. He is a Media Consultant, a Corporate MC, Radio and TV Host, Founder and Publisher of the Maritime and Transport Digest Newspaper, Businessman, a Go getter and an optimist. He has worked for renowned media organizations including Diamond Fm in Tamale, Luv Fm in Kumasi, Oman Fm in Accra and Starr Fm in Accra In 2017 he received the Reporter of the Year Award at the Ghana Shippers Awards in Accra, Ghana.

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