SEC to introduce new guideline to prevent misapplication of investment funds


The Securities and Exchange Commission (SEC) has begun drafting new guideline on a third party and related transactions that will prevent misapplication and misappropriation of investments funds by fund management firms.

The third party and related transactions were the major cause of the collapse of fund management firms, forcing the clean-up of the securities industry.

Disclosing this at the Tesah Capital Webinar on the Topic:  Investing After the Financial Sector clean-up, Deputy Director of SEC, Paul Ababio, said “what we learnt from the sector clean-up was that there was corporate governance weakness. Due to that, we have introduced conduct of business guidelines in which we require market operators to issue annual reports.”

“We also found that there were related transactions that were not done transparently, so we’re working on introducing investment guidelines for fund managers”, he pointed.

Furthermore, he said “we’ve also digitized the submission of reports, and this allows for real-time inspections by the regulator and for us to address confrontational issues as and when we identify them.

Speaking at the same forum, Senior Lecturer at the University of Ghana Business School, Dr Elikplimi Komla Agloyor cautioned Ghanaian investors to be mindful of their appetite for high returns since their investments can go waste.

“Don’t chase abnormal returns. What returns will we classify abnormal, for example, 10% a month. I think it’s abnormal but currently, if you buy Treasury bill instruments, they’re going between 12 and 13%…that’s understandable, that’s not like 120% a year.”

“Or if you’re doing the equity market, the average return you could get is probably 20% a year. These are returns that also compensate you for inflation. Beyond that I think you should be careful,” he added.

A board member of Tesah Capital, Dr Justice Yankson assured investors that his outfit will exhibit compliance and prudence in its financial transactions.

“We’re going to continue to ensure that at all times, we’re compliant and we are up to date with everything that the regulator requires of us.”

“We are running a very open entrance system where each client can at any given time log on and access their account details, reach out to us either virtually or in-person for any discussion relating to investment, management of finances and the way forward,” he assured.

Tesah Capital

Tesah Capital Limited (formerly NDK Capital Limited) was incorporated in 2010 under the laws of Ghana to provide fund management services to pension trustees, financial and non-financial institutions, corporates and individuals.

It is licensed by the SEC as an Investment Advisor and Fund Manager and registered by the National Pensions and Regulatory Authority (NPRA) as a Pension Fund Manager.

The company is the investment gateway to Africa as it has grown its capabilities to meet the needs of clients over time and offer alternative ways to achieve investment growth and capital preservation.


Source: myjoyonline

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