The Securities and Exchange Commission Ghana (hereinafter referred to as ‘SEC’) has issued a statement to clarify and correct the investing public who are misinterpreting its earlier statement on Zenith Bank Ghana PLC’s cessation of trustee services.
According to the Securities and Exchange Commission Ghana, Zenith Bank remains an active operator in the securities market and not as many interpreted the notice.
“The attention of the SEC has been drawn to various messages being disseminated among the general and investing public misinterpreting the Public Notice titled PUBLIC NOTICE ON VOLUNTARY CESSATION OF TRUSTEE SERVICES BY ZENITH BANK GHANA LIMITED (SEC/PN/001/01/2023), issued by the SEC on Wednesday, 18th January 2023.
“The SEC is hereby issuing this Public Notice to clarify that, as stated in the Public Notice referenced above, Zenith Bank Ghana Limited voluntarily requested to cease operations as a Trustee. Although Zenith Bank Ghana Limited voluntarily ceased its Trustee services for Unit Trust Schemes in 2022, the bank continues to hold a Custodian license issued by the SEC under the Securities Industry Act, 2016 (Act 929) and remains an active operator in the Ghanaian Securities market and banking industry.”
SEC
Meanwhile, this clarification came on the back of a earlier statement in which the Securities and Exchange Commission has made public Zenith Bank’s decision to voluntarily leave the capital markets. The Bank is no longer required, according to the SEC, to carry out trustee functions for the securities sector.
Zenith Bank Ghana Limited, a licenced Trustee that engaged in Trustee services in the securities industry and capital market, has voluntarily requested to suspend operations, the Securities and Exchange Commission (SEC) announced in a statement on January 18.
“The SEC has, after a thorough assessment of the circumstances, approved the voluntary cessation of business of Zenith Bank Ghana Limited as a licensed Trustee. Zenith Bank Ghana Limited is no longer mandated to carry out any Trustee activities within the securities industry.”
SEC
The SEC continued, “all investors, market operators, and the general and investing public are hereby assured that the SEC 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.”
This Notice was issued pursuant to Sections 3(b) (f) (m) and 208 (c) of the Securities Industry Act, 2016 (Act 929).
SEC, however, did not state the Bank’s reasons for the exit from the securities and capital market.
Meanwhile, a minority spokesperson, Cassiel Ato Forson, has warned that some banks risk an imminent collapse due to the current state of the economy amid the ongoing debt restructuring program.
The Securities and Exchange Commission is the statutory body mandated by the Securities Industry Act 2016 (Act 929) as amended by the Securities Industry (Amendment) Act 2021, Act 1062 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.
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