Ghana’s Securities and Exchange Commission in talks to boost liquidity among fund and asset managers

In a statement issued by the SEC, it said that it is committed to regulating and promoting the growth and development of an efficient, fair and transparent securities market in which the integrity of both investors and the market is protected.

“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 are also aware that certain investors are unable to access their matured investments from some of our licensed Asset Management Companies (AMCs) or Fund Managers (FMs) due to some liquidity challenges,” the statement added.

SEC’s instructions to AMCs/FMs

The SEC stated that it has also directed all AMCs/FMs to put mechanisms in place which will allow them to meet their obligations to their clients.

The Commission further urged dissatisfied customers of these AMCs/FMs to lodge written complaints with the Commission.

“The Commission is engaging with stakeholders on efforts to improve liquidity in the industry. 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 read.

Some of these measures the Commission revealed include:

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,

Higher minimum capital/liquidity requirements for AMCs/FMs and other operators, 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.

“Once again, 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. 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 statement concluded.