Wednesday, November 13, 2019

SEC revokes licenses of 53 securities, fund management companies

The Securities and Exchange Commission (SEC) has revoked the operating licences of 53 investment companies, Friday.

The move, the regulator says is to protect the integrity of the securities market and investors.

The 32 firms whose operating licenses have been revoked include All-time Capital Limited, Apex Capital Partners, Axe Capital Limited (Formerly United Asset Management, Intermarket Asset Management Limited (formerly CDH Asset Management) and Blackshield Capital Management (formerly Gold Coast Fund Management).

SEC revocation list

Twenty-one other firms were already out of business before the decision to revoke their licences was taken.

“These firms failed to inform clients about the risk that they are taking. They also failed to notify the Commission about their dealings,” said the Director-General of the SEC, Daniel Ogbarmey Tetteh, at the stakeholders’ meeting.

The SEC boss also announced that the Registrar-General will be the Receiver for an entity that will be created for the firms whose licences have been revoked.

He said the Receiver will also scrutinise the payments of funds to investors.

The firms whose licences have been revoked controlled at least 56,000 investors with a combined asset of GHS1 billion, Mr Ogbarmey Tetteh revealed.

“These actions were taken pursuant to Section 122 (2) (b) of the Securities Industry Act, 2016 (Act 929 or “the Act”) which authorises the Securities and Exchange Commission to revoke the licence of a market operator under any of the following circumstances:

(a) If it is wound up;

(b) It ceases to carry on the business for which it was licensed;

(c) If the Commission has reason to believe that the licensed body or any of its directors or employees has not performed its functions or the functions of directors efficiently, honestly and fairly;

(d) If the licensed body contravenes or fails to comply with a condition or restriction applicable in respect of the license or any other provision of  Act 929; and

(e) If the licensed person fails to commence business within 6 months of being granted a licence,” the SEC said in a statement.

SEC revocation list 1