SEC on track to deal with complaints - Director-General

The Securities and Exchange Commission (SEC) says it is working to address ongoing issues, including complaints of inability of funded managers to meet redemption requests, in the Asset Management Industry to ensure the protection of customers.

Reverend Daniel Ogbarmey Tetteh, the Director-General of SEC, said the Commission was working with the fund management firms to address the complaints of clients lodged with it in line with the law and to strengthen compliance.

He said the Commission would be tracking compliance and taking further action against firms that fail to conform while directors and senior management culpable face the appropriate sanctions.

The press conference was called to inform the investing public on the state of the Asset Management Industry in the country and to provide clarity on the actions the Commission is taking to bring stability to the market place and inform the public on these developments.

It was also to dispel rumours and mischief intended to destroy the market and the confidence of investors.

Rev. Tetteh said among the initiatives being taken by the Commission to ensure certainty in the market is a risk-based supervision, which puts the spotlight on licensees with growing list of complaints.

Already, directives have been issued to some fund management houses to stop taking new deposits, he said.

He noted that the Commission was also empowering aggrieved investors to pursue their investments using the Court system.

SEC has also introduced corporate governance guidelines, investment guidelines and financial resources guidelines to ensure properly capitalized and well governed asset management firms.

Furthermore, SEC is working at a quicker access by the investing public to information on licensees with the help of information technology to assist the investing public to make informed decisions rather than being misled by unsubstantiated claims in the social media.

The list of fund management firms on SEC’s website is by no means a list of companies that are not safe to invest with as has been wildly speculated in social media.

Rev. Ogbarmey asked all Fund Managers to exercise due caution and Fiduciary responsibility in making investment decisions and also have strong risk management processes in place as well as a robust investment management process.