Ghana’s investment market
Ghana’s investment market

Ghana’s capital and investment market will from this year see newer and tougher rules and regulations guiding its activities, Alexander Williams, Acting Director General of the Securities and Exchange Commission (SEC), hinted here Tuesday night.

Ghana’s investment market
Ghana’s investment market

The passage of the Securities Industry Act of 2016, Act 929, he noted, had given the regulator the necessary powers to perform its duties in promoting and regulating the market more effectively.

In his keynote address during the launching of two Mutual investment funds, namely Crystal Entrepreneur Fund (eFund) and Crystal Wealth Fund (W-Fund), Williams noted that 2017 would mark the beginning of a new excitement and challenges in the capital market.

“Beginning this year, the country is going to experience an exciting and challenging capital market. After a long run, the Securities industries Act (2016) was passed. The passage of the Act brings to date the required legal framework for the securities industry to license all forms of securities,” Williams stated.

The Director General stressed that the objective for setting up SEC as contained in the new Act was to regulate and promote the growth and development of an efficient fair and transparent securities market in which investors and operators were protected.

“The Collective Investment Schemes (CIS) market has enjoyed a steady growth over the years. At the end of 2014, there were 42 licensed schemes made up of 18 Unit Trust and 24 Mutual funds. Two years down the line, there are 53 licensed schemes.”

These schemes, Williams said, offered opportunities to all investors to have access to a diversified pool of investments.

He said the commission therefore viewed the CIS market as a very critical one since it constituted one of the investment vehicles that would facilitate the growth of the capital market in Ghana.

“Again, the CIS is available to all investors who will otherwise have been cut off because they lack the means and understanding of the operations of the capital market.”

The Director General forewarned the market operators that since the Act had also given the commission the operational independence it needed for the efficient and effective regulation of the securities industry, the standards that the commission would set for the capital market operators would be very high and demanding.

“While setting those standards, the commission will also provide the environment to promote the development and growth of the capital market.” Williams assured.

He congratulated Crystal Capital Investments Limited, managers of the new funds, urging that, going forward, since the CIS market was a very competitive one, the clarion call would be that it would take commitment, dedication, thinking outside the box, and burning the midnight candle to make these two new babies thrive.

“We understand that a buoyant capital market is critical in helping to develop structured products, build the right understanding and investment culture among our people, to help mobilize significant investment funds as well as develop the right leverages to boost the economy,” Chief Executive Officer (CEO) of Crystal Capital, Martin Ofori stated.

With the requisite skill and space to establish funds, he said Crystal Capital would leverage the potentials and goodwill in the market to boost the economy, urging the financial authorities to provide comprehensive support for the essential components of capital markets through increased interaction and coordination. Enditem

Source: Xinhua/NewsGhana.com.gh

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