Regulations Commission support ban of United Securities

Accra (Greter Accra), 24 July 99

The Security Regulations Commission (SRC) has affirmed the decision of the Ghana Stock Exchange (GSE) to expel United Securities Trust Limited (USTL) and revoke the Dealer's and Investment Advisers Licenses issued to USTL.

It has, therefore, directed that USTL closes all accounts of clients and return all clients' monies and assets to them on or before July 30 in accordance with Section 62 (2) (b) (vi) of PNDCL 333.

A statement by Dr Charles Asembri, Director-General of the SRC, warned the investing public that USTL can no longer carry out the business of dealing in securities and that no one should transact business with the company except to recover any monies or assets in the possession of USTL.

The SRC assured the public that it will continue to work with the Ghana Stock Exchange in its efforts to maintain the integrity of the capital market and will not hesitate to sanction any market operator that violates the provisions of the securities industry laws and regulations.

On June eight, the Council of the GSE expelled USTL from its membership on the grounds that it was in gross violation of Regulations 42 and 44 of the Exchange's Membership Regulations, 1991 (LI 1510) in that it had misappropriated certain funds lodged by Enterprise Insurance Company.

GRi?/