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General News on Thursday, April 4, 2019
Source: thebftonline.com
2019-04-04
On September 7, the SEC ordered Menzgold to suspend its activities with the public
The Securities and Exchange Commission (SEC) has no idea about the depositors' funds or the number of individual and institutional investors concerned whose funds are stuck in the Menzgold gold distribution company.
Rev. Daniel Ogbarmey Tetteh, chief executive of the SEC, at a press conference held in Accra yesterday, said: include the number of customers they have and the money that they have. they mobilized. Rather than answer, they went to court to ask him to stop us from interfering in their affairs.
"The truth is that we do not know the exact amount of funds they have mobilized. Menzgold investors can expect the best, but no one can give them a guarantee. The SEC is certainly not in a position to repay the lost investments. As an SEC, we use every available means to get information about what's going on, "he said.
SEC proposes new minimum capital for market operators
The SEC has also proposed to increase the minimum capital requirements of companies operating in the securities market, in order to make the institutions it regulates more liquid and restore the confidence of depositors.
This announcement comes after the investing public has expressed concern about the inability to access its maturing funds with various fund managers and at the somewhat abrupt end of the operations of some of these regulated institutions by the SEC.
Once again, the difficulties in recovering funds from various fund managers exposed to the government, because of the government's tight fiscal space, have created some short-term problems.
The SEC, which has remained pbadive so far, said the new draft directive provided for the minimum capital of fund managers to be increased to 5 million GH; Clearing Houses, GH ¢ 50 illion; Directors, 50 million GH; Custodian, 50 million GH ¢; and Securities Exchange, 10 million GH ¢.
However, the directive is expected to be amended before the final approval of its implementation is given.
This means that market operators are still bound by the old capital requirement until the project is approved and enforced by the SEC.
"We have to follow a certain process to achieve it. The current minimum capital standard is in LI 1728; we can not just issue a directive and modify what is in the LOI. We must first remove these provisions and a process must be followed.
"So it's a work in progress, but the market already knows where the levels are. The new levels are in different categories and the industry is aware of it. But in terms of its publication, you must first process LI 1728 before you can apply it.
"We had contacts with people from the industry. it's all about legalization, "Daniel Ogbarmey Tetteh, chief executive of the Securities and Exchange Commission, told reporters at a press conference in Accra.
Mr Ogbarmey Tetteh added that the Commission had put in place a number of initiatives to improve its regulatory requirements for the market. These include new provisions on corporate governance, investment guidelines, related party transactions and penalties for wrongdoing.
Again, the Council will soon facilitate the electronic submission of licensed operators' declarations and the badysis of returns to be able to give early warning signals to unsuspecting depositors.
The Commission has also developed mechanisms for hearing complaints and monitoring operators' compliance, as well as additional measures for non-compliant companies.
It has also prevented certain license holders who demonstrate actions and behaviors inconsistent with the adequacy test and relevance of conducting their activities in the securities industry.
Some fund management companies were also prevented from making new deposits; and others were suspended and their license was revoked.
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