SEC warns against 23 unlicensed investment entities in Ghana; full list

The Securities and Exchange Commission (SEC) has issued a public warning, urging Ghanaians to avoid investing with 23 unlicensed investment entities operating on social media and online platforms.

According to the regulator, the listed companies are promoting and offering investment products without the required licence to conduct capital market activities in Ghana, contrary to the Securities Industry Act, 2016 (Act 929), as amended.

The SEC said it is working closely with law enforcement agencies to identify and prosecute those behind the alleged illegal investment schemes.

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In a public notice, the SEC stressed that none of the 23 entities has been authorised to offer investment products or services in Ghana.

The regulator warned the public to exercise caution and refrain from investing in any scheme operated by these entities.

"The SEC has not licensed any of the listed entities to carry out capital market activities as mandated under Section 3 of the Securities Industry Act, 2016 (Act 929), as amended," the Commission stated.

It added that investigations are ongoing and that enforcement action will be taken against those responsible for operating the unlicensed schemes.

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The SEC identified the following entities as operating without the required licence:

The Commission disclosed that it is collaborating with the Ghana Police Service and other law enforcement agencies to clamp down on individuals and organisations operating the unlicensed investment schemes.

The SEC said these operations pose significant risks to investors and could result in financial losses for unsuspecting members of the public.

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To protect investors, the SEC urged the public to verify the licensing status of any company offering investment products before committing funds.

Members of the public can confirm whether an investment company is licensed by contacting the SEC through its official communication channels, including:

Toll-free line: 0800 100 065

Main line: 0302 768 970–2

Email: info@sec.gov.gh

The Commission advised Ghanaians to remain vigilant and report suspicious investment schemes to help protect the integrity of the country's capital market.

The Securities and Exchange Commission is Ghana's statutory regulator responsible for overseeing the country's securities industry under the Securities Industry Act, 2016 (Act 929), as amended by the Securities Industry (Amendment) Act, 2021 (Act 1062).

As part of its mandate, the SEC monitors activities within the capital market, safeguards investors, and regularly publishes notices to alert the public about illegal investment schemes and other risks.

The latest warning was issued pursuant to Sections 3 and 208(c) of the Securities Industry Act and forms part of the Commission's ongoing efforts to promote a fair, transparent and secure investment environment in Ghana.