Unlicensed investment entities: Several others being investigated – SEC

Accra, Sept.15, GNA — The Reverend Daniel Ogbarmey Tetteh, Director General of the Securities and Exchange Commission (SEC), says investigations are being carried out on other investment entities aside the 17 unlicensed ones the public was cautioned about.

He said in due time, the names of the entities would be published after they had advanced with investigations.

The Director General said this in a Youtube Video providing answers to key questions pertaining to a recent press release issued by the SEC and Economic and Organised Crime Office (EOCO) to warn the public about 17 unlicensed entities offering various investment products.

The video was also to explain a recently signed Memorandum of Understanding (MOU) between SEC and EOCO.

SEC and EOCO on Tuesday issued a joint press release warning the public to desist from doing any form of business with 17 investment entities.

The statement comes after joint SEC and EOCO investigations into the activities of the entities, largely operating via online channels, and found them to be “unlicensed.”

The entities are; Patron Pay Ghana/Petron Pay Ghana, Cedi Network Ghana, Bitcash Investment, Solmax Group, Freedom Synergy, FxKash Investment, Binomo Investment, Hi Pay, Quick Earn, and Lite Earn.

Others are; Snap Finance, Faucet Wealth Investment and Opay Investment, Payme Financial Services, Passive Income, Yvonne Hanson Deals, and Alpha Pay.

The statement said, “The General Public is hereby advised to be vigilant and to desist from investing in all unlicensed investment products.”

It assured capital market operators, investors, and the public that SEC in collaboration with all relevant law enforcement agencies would ensure the rigorous enforcement of all the securities laws for operators in the market.

“This is to promote an orderly growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected,” it said.

Rev Tetteh said they issued the joint statement on the unlicensed entities to create awareness and protect investors, adding that, an informed investor was a well-protected investor

He advised the public not to engage in business with any unlicensed entity because there was no level of protection for such investors.

“No matter how attractive the products of those entities are, first asked if the scheme is licensed. If not, do not deal with them,” he said.

Rev Tetteh advised them to report such entities to SEC, EOCO or any other law enforcement agency and if they were in doubt about the genuineness of the schemes.

He explained that such schemes often promised mouthwatering returns and usually operated in cyberspace or online with no fixed office location.

The Director General said their business models were opaque and it was difficult to understand details of the financial product being offered.

“They may even use pictures of some notable personalities without their permission to generate trust in you for them. Do not be misled by some of the testimonies that they may post to convince you. They are all part of the trickery meant to make you believe that it is real. Once they are not licensed, just look for the exit,” he said.

He also noted that the recently signed five-year MoU between SEC and EOCO would help in the effective fight against financial crimes, information sharing, training programmes, enhance the powers of both entities to investigate and prosecute serious offences.

Rev Tetteh said it would also help to recover proceeds of financial crimes, monitor activities connected with those offences and prevent the commission of serious economic crimes.



Source: Ghana News Agency

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