The Securities and Exchange Commission (SEC) has assured customers of five collapsed fund management firms that their investments are safe.
Last week, the SEC revoked the licences of the companies for breaching rules guiding their operations.
Read Also; SEC Revokes Licences of Five Investment Comapnies
The companies include; Georgetown Capital Partners Limited, Equity Capital Limited, Index Analytics Limited, DM Capital limited and Oxygen Advisory limited.
As a result, they can no longer engage in fund management activities in the capital market.
Assuring the public of the safety of their funds, the Head of Policy and Research at the SEC, Emmanuel Ashong Katai said investors, market operators and the general public are secured to work in the market.
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“We are taking serious actions against those who have become persistent flouters of the law. Others too are using the license for shadow banking purposes and shadow banking is doing banking without the backing of the Bank of Ghana.”
Providing more information, Mr. Ashong Katai stated that some of the companies do guarantee returns just like the banks.
He, however, pointed out that, investment companies are not required to do that in most cases since they do not have huge reserves which can be easily liquidated.
“Some are even lending money. Instead of investing and managing investments, they will be lending monies to SMEs and other sectors,” he said.
Mr. Ashong Katai noted that the SEC has all the list of customers and all funds have been refunded to them so there is no cause for alarm.
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