The Securities and Exchange Commission of Ghana (SEC) has in a statement issued a directive to all investors and market operators on the use of ‘Ghana card’ as the only identity card for all transactions in the securities market.

According to SEC, the directive is in pursuant to sections 2, 3, and 209 of the Securities Industry Act, 2016 (Act 929), and the National Identity Register Regulations, 2012 (L.I. 2111) as amended, for the use of the Ecowas Identity Card (‘Ghana Card’)

“The SEC hereby directs that, with immediate effect, the ‘Ghana Card’ shall be the sole identity card for all new investors seeking to undertake any transaction in the Securities Market. In the case of existing investors, the ‘Ghana Card’ shall be the sole identity card for all their transactions with Market Operators, effective 1st January, 2023.”
SEC

SEC, meanwhile, urged all existing investors to as a matter urgency update their records to reflect the ‘Ghana card’ document.

“All Market Operators are directed to immediately take steps, including the use of digital channels to update investors’ records with the ‘Ghana Card’. All Investors who were admitted into the Securities Market with identity cards other than the ‘Ghana Card’ are to present their ‘Ghana Cards’ for update of their KYC records with their respective Market Operators.”
SEC

Objective of the Directive

The Securities and Exchange Commission indicated that the overriding objective of the directive is to eliminate fraud and have one single means of identification for all market participants.

“The objective of this Directive is to achieve uniformity in the identification of investors and to align the Securities Market’s operations to that of the entire financial sector, to enhance market surveillance, and ensure the integrity and security of information.”
SEC

The apex regulator for the securities/capital market in Ghana further noted that where there is a breach of any provision stipulated in the Directive, “the SEC may take any action(s) specified under section 209(4) of the Securities Industry Act, 2016(Act 929) as amended, and/or any other relevant law or any provision applicable under the Securities Industry Act, 2016(Act 929) as amended.”

SEC, moreover, charged the general public, especially the investors and market operators to seek more clarification from the Exchange, adding that SEC may revise, amend, vary or revoke the directive at any point in time.

“Where any doubt arises about the meaning of any provision contained in this Directive, the same shall be referred to the SEC and the interpretation provided by the SEC shall be final.

“This Directive shall take immediate effect and shall remain in force until otherwise revised, varied, amended, or revoked.”
SEC

The directive means that SEC has become the latest institution to join a list of institutions accepting only the Ghana card as the only source of identification, following banks, GRA, and other state institutions.