The Securities Exchange Commission (SEC) has initiated a process to disqualify directors of the fifty-three defunct Fund Management Companies (FMCs) from operating in the capital market.
SEC in 2019 revoked the licenses of 53 FMCs for regulatory breaches such as failing to return the funds of clients when they fall due.
Reverend Daniel Ogbarmey Tetteh, Director-General (D-G) of SEC, disclosed this during a two-day training programme for 40 Court of Appeal and High Court judges in Accra yesterday, said the move was to sanitise the capital market.
The programme titled,“Time with the SEC Judicial Service Edition,” and on the theme:“The Role of the SEC in the Capital Market,” was to educate the justices on the Securities Industry Act 2016 (Act 929), which governs the capital market.
Rev. Tetteh said, after the revocation of the licenses of those companies, about 186 directors were identified.
He said the Securities Industry Act 2016 gave the SEC the mandate to disqualify some directors from operating in the capital market.
“For the rule of natural justice, we have to hear the directors of the defunct Fund Management Companies for what they have to say, before SEC takes an action,” he said.
He said, he was hopeful before the end of the year that all the directors would have been given a hearing for an action to be taken on them.
The D-G of SEC said his outfit would continue to work to protect investors and integrity of the capital market.
“The securities industry holds significant importance for capital mobilisation for savings, job creation and investment,” Rev. Tetteh, said.
The Acting Director of the Judicial Training Institute, Ghana Justice Dennis Adjei, commended the SEC for the training on the Security Industry Act 2016 (Act 929).
He said that though the law was a good one, it had some lapses, and urged the justices to bring out those lapses for rectification.
Justice Adjei observed that the training would help the justices to better interpret the law for it to reflect the purpose it was enacted.
The Deputy D-G of SEC in charge of Legal, Mrs Deborah Agyemfra, said though the Securities Industry Act 2016 was passed in 2016, training had not been done on the law for justices of the Court of Appeal and High Court.
She said similar training had been organised for the Security Agencies, the media and other stakeholders.
The Board Chairman of SEC, Dr Yeboa Amoa, said the Judiciary played critical role in the capital market as it served the forum for the settlement of dispute.
He commended the justices for taking time off their busy schedule to attend the programme.
BY KINGSLEY ASARE