The Securities and Exchange Commission (SEC) has warned businesses operating under the guise of real estate, farming and other legitimate ventures against offering investment schemes to the public without the required regulatory approval.
The Commission says it is intensifying its monitoring and enforcement activities as part of efforts to sanitise Ghana’s investment industry and protect members of the public from unauthorised investment schemes.
The warning follows the shutdown of Nyak-City Hostels Limited, which the SEC says was operating an investment scheme without the requisite licence from the Commission.
According to the SEC, the company had been offering an investment product to members of the public, prompting regulatory intervention and subsequent enforcement action.
Deputy Director-General of the SEC in charge of Operations, Mensah Thompson, said the Commission would take enforcement action against businesses found to be mobilising funds from the public through unlicensed investment products.
He stressed that businesses seeking to offer investment opportunities to members of the public must obtain the necessary regulatory approval before soliciting or mobilising funds.
The SEC’s warning covers businesses that may use legitimate commercial activities, including real estate and farming, as the basis for investment products offered to the public.
The Commission says the intensified monitoring and enforcement are aimed at protecting investors and strengthening confidence in Ghana’s financial market.
The SEC also wants to prevent members of the public from committing their funds to investment schemes that have not undergone the required regulatory scrutiny and approval.
The Commission has therefore urged the public to verify the regulatory status of investment companies and investment products before committing their funds.
It says investors should exercise caution and confirm that any company offering an investment opportunity has the appropriate authorisation to operate before handing over their money.
Story by Ama Frimpomaa