SEC to hear some Directors of defunct FMCs

Securities and Exchange Commission
Securities and Exchange Commission

The Securities and Exchange Commission (SEC) has initiated processes of hearing former Directors of the defunct Fund Management Companies (FMCs), whose Companies had their license revoked.

Mrs Deborah Mawuse Agyemfra, Deputy Director-General, Legal of SEC, explained that per the rule of natural justice, the Commission needed to hear their case and after the hearing, a decision would be made.

Speaking on the sidelines of the “Time with the SEC” the Judicial Service Edition in Accra, Mrs Agyemfra said those Directors found culpable would be disqualified for some number of years.
The event, which was to sensitize 40 judges of the Court of Appeal and High Court on the Securities Industry Act, 2016 (Act 929) was on the theme: “The Role of SEC in the Capital Market.”

SEC is established by the Act with the objective to regulate and promote the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.

She said the Securities Industry Act (Act 929) gave the Commission the power to disqualify people from its space for a certain number of years those found culpable.

“This one the Commission does not need any court order to take such decision,” she added.

She said the Directors numbered 186, would be heard but the indications they had picked so far was that some had resigned even before the revocation, but the Commission was not notified, whiles some had their names on record, but they never took part in the decision making.

Mrs Agyemfra said there were various categories, so the hearing was very critical for them to come out and tell the Commission their side of the story before a decision was made.

“We have decided to make the process a face-to-face rather than virtual but unfortunately, some of the Directors because of medical conditions and some also had to travel outside the jurisdiction, it was taking longer time than they expected,” she said.

The Deputy Director-General said there were four outstanding court orders and the ones the Commission does not have court orders, they were not listening to them yet but expressed the hope that if the court processes were resolved by the end of the year, they would have heard all the Directors and decision taken.
Reverend Daniel Ogbarmey Tetteh, the Director=General, SEC, commended the Chief Justice for his interest in the programme and to the Acting Director for the Judicial Training Institute for facilitating the training.

He said the securities’ industry had a significant, though largely untapped potential for capital mobilisation and deployment, which was critical to activating triggers of economic growth, including saving and investments.

He said as a regulator in the securities industry, their mandate was to protect investors and the integrity of the market, and that they had several tools that were used to achieve their mandate, including enforcement.

The Director-General said enforcement was critical in the wake of challenges including financial and accounting fraud, dishonest and misappropriation of client money, the Ponzi schemes and the issues of cybercrimes on the back of a lot of e-transactions.

He said it was important for enforcement by the regulator to be strong, because “it boosts confidence to asset owners and the general investing public.”

Justice Dennis Adjei, the Acting Director of the Judicial Training Institute, urged his colleagues to take keen interest in the programme, since this was the first time a sensitisation had been held on the Act.

He called on the Judges to appreciate the law, because by the end of the day, judges would decide on issues concerning the law in their various courts.

“Anything that comes up and you disagree or have a different opinion, let rise it so that at the end of the day, a fruitful discussion will be held,” he added.

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