Licence revocations: 81,000 customers affected – SEC reveals

The full impact of the revocation of the licences of some 53 investment firms, is emerging.

About GHC¢8b investments of 81,700 clients, made up of 44,000 institutional customers and 7,700 retail customers are involved, the Deputy Director of the Securities and Exchange Commission told JoyNews Monday.

Mr Paul Ababio’s outfit on Friday revoked the operating licences of 53 investment companies.

Blackshield Capital Management is among 32 operating firms whose licences have been revoked.

The revocation of the licences, according to the regulator, is to protect the integrity of the securities market and investors.

At a stakeholder meeting Friday before releasing a list of the affected companies, the Director-General of the SEC, Rev. Daniel Ogbarmey Tetteh, said troubled securities firms that have still not been able to address concerns raised about their operations over the years, are among those affected by the action.

Jobs may not be heavily impacted

SEC postulates, its actions may not affect employment severely.

Frank Ababio based his optimism on the fact that the regulator had licenced only 249 investment operators.

Of the above number, some had ceased working because their firms had collapsed before the SEC action.

“And then we had the remaining firms, some of whom had downsised,” he added.

Explaining the actions of the regulator in relation to job losses, he said their actions rather portend well for employment.

“We considered that protecting investors and having a stronger capital market coming out of this action, will create so many jobs for the lawyers, accountants and service providers.

“Do we want to be gainfully employed or just employed,” he asked

CID to pursue Fund Managers

Meanwhile, in the following video, the Deputy Director of SEC said that the security agencies are pursuing fund managers who are believed to have absconded with the monies of their