SEC Extends Moratorium on New Fund Management Licenses for a Period of 6 Months

The Securities and Exchange Commission of Ghana (SEC), a statutory body mandated by the Securities Industry Act 2016 (Act 929) as amended to promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected, has announced the extension of moratorium on new fund management licenses for a period of 6 months.

In a statement issued by the regulatory body, the SEC, however, indicated that it will continue to review applications for renewals for existing Fund Management Licencees and new market products.

“The SEC refers to Its Public Notices with Nos. SEC/PN/010/10/2019, SEC/PN/004/03/2021, and SEC/PN/002/02/2022 and wishes to inform the investing and general public that it has further extended the moratorium on the issuing of new Fund Management Licenses for a period of six (6) months.”
SEC

According to the Commission, the extension is to enable the SEC focus on the thorough review of the current licensing regime for a stronger and a more efficient and resilient market and the introduction of new licensing guidelines and directives.

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SEC added that the extension of the moratorium will offer resolution of the current challenges facing the securities industry and the capital market.

“The Introduction of new products in the capital market to deepen the existing market and to provide more investment options for investors and the general public and a thorough overhaul of the Commission’s activities.”
SEC

The Commission assured all market operators, investors, and the general public that it is committed to ensuring rigorous enforcement of all the rules for operators in the capital market in order to promote the growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected.

Meanwhile, the SEC also has a mandate to maintain surveillance over activities of Commission to ensure orderly, fair and equitable dealings in securities and to protect the integrity of the market in accordance with Section 2, 3 and 208 of Act 929.