The Securities and Exchange Commission (SEC) has held a free investor campaign program in the Northern Region dubbed, ‘Time with SEC’ in Tamale.
The program which is a flagship initiative of the SEC forms part of the commission’s strategic thrust of educating members of the investing public and other key stakeholders about the Ghanaian Capital Market and other important investments.
Speaking at the Tamale edition of ‘Time with SEC’, the Director General of Ghana Securities and Exchange Commission (SEC), Reverend Daniel Ogbarmey Tetteh, noted that the recent revocation of license of fortified management companies affected a number of investors in Northern Ghana. He said and there was a need to have such a critical stakeholder engagement to afford the investor community to understand and appreciate the potentials of the capital market.
He stressed that, the region is noted for a lot of agricultural activities and therefore the need to get the people to appreciate the potential that the capital market offers to the people in the area. He said it was also important to let investors in the area know what the regulator does to ensure the protection of investors and integrity of the industry.
“This is really to ensure closing of the knowledge gap, “one of the things to that they believe is that a well-informed investor is a well-protected investor.
Speaking on the theme; the role of SEC in the capital market, Rev. Daniel Ogbarmey Tetteh, said the capital market master plan was lunched last year to sanitize the investor environment and the implementation started.
“The plan is a ten (10) years blueprint for developing the market. The vision of the plan is to have a deep, efficient, diversified and well regulated capital market with a full range of products attractive to both domestic and international investors. More products will be seen in five (5) years time because the need to deepen the investment universe would have innovative products especially products in the Fintech space and more people will understand and patronize the security industry. This will ensure investors’ confidence and strong enforcement”, he explained.
He said, “Basically, in five(5) years he sees Ghana capital market or the security industry making a lot of impact on the life of individuals, household, businesses and ultimately on the economy. People will begin to appreciate more the relevance of the capital market when it comes to serving and investment, raising of capital to fund businesses to help close the gaps in infrastructure and employment. In five (5) to ten(10) years you will see the capital market playing a leading role where mobilisation of patients capital to develop the capital market”.
Mr. Francis Boadu, the head of department for Ponzi Pyramid at SEC, added that, an essential obligation of SEC as stipulated in section 3(b) of ACT 929 is to maintain surveillance over activities in the securities to ensure orderly, fair and equitable dealing in securities. He noted SEC is also mandated on protecting investors by publishing at regular intervals information to the public to inform their investment decision, Close up collaboration with Law Enforcement Agencies (LEA) by signing of Memorandum of Understanding (MOU) with Economic and Organised Crime Office (EOCO) which will lead to joint investigations.
In addition, he said one can avoid becoming a potential investment fraud target by understanding and recognizing the warning signs or red flags of a ponzi scheme, for instance promising high, guaranteed investment returns with little or no risk.
“Insurance of guarantee is also promised to mitigate risk one should be suspicious of any supposed insurance or guarantee that is promised to mitigate the risk of investment,” he concluded.
Story by Abukari Alhassan Baba