ENSURING INVESTOR PROTECTION

Overview
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Overview

April 28, 2017

The Securities and Exchange Commission (‘the Commission’) is established by the Securities Industry Act, 2016 (Act 929) (‘the Act’) with the object is 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.

Functions of the Commission

To achieve the object of the commission, the commission shall:

  • Advise the Minister on matters relating to the securities industry.

  • Maintain surveillance over activities in the securities to ensure orderly, fair and equitable dealings in securities.
  • Register, licence, authorize or regulate, in accordance with the Act or the Regulations, the establishment of securities exchanges, commodities and futures exchanges, securities depositories, clearing and settlement institutions, credit rating agencies, fund managers, investment advisers, unit trusts, mutual funds, hedge funds, private equity funds, venture capital funds nominees, underwriters, issuing houses, registrars, custodians, trustees, primary dealers, broker-dealers the mode of conduct of securities businesses, issues concerning Accounts and Audits, the establishment of fidelity funds and trading in securities.
  • Formulate principles for the guidance of the industry.

  • Monitor the solvency of licence holders and take measures to protect the interest of customers where the solvency of a licence holder is in doubt.
  • Governing Body of the Commission
    The governing body of the Commission is a Board consisting of:
    1. A chairperson.
    2. The Director-General.
    3. The two (2) Deputy Directors-General.
    4. One representative each from the following:
      1. Bank of Ghana not below the rank of a Director and
      2. Ministry of Finance not below the rank of a Director.
       
    5. The Registrar-General or the representative of the Registrar-General and
    6. Four (4) other persons comprising:
      1. A lawyer qualified to be a Justice of the Superior Court of Judicature nominated by the General Legal Council.
      2. A chartered accountant nominated by the Institute of Chartered Accountants, Ghana.
      3. An academic researcher in relevant field and
      4. A woman.
    The members of the Board shall be appointed by the President in accordance with article 70 of the Constitution. The Board shall monitor and oversee the operations of the Commission and ensure the effective implementation of the object and functions of the Commission.

    Committees of the Commission

    The Board may establish committees consisting of members of the Board or non-members or both to perform a function. A Committee of the Board may be chaired by a member of the Board.

    Administrative Hearings Committee

    The Administrative Hearings Committee consists of three (3) members of the Board elected by the members, except that the chairperson of the Board, the Director-General and the two (2) Deputy Directors-General shall not be members. The members of the Committee shall elect a chairperson from among the three (3) members. The functions of the Committee will be to examine and determine complaints and disputes related to, in respect of, or arising out of a matter to which the Act applies.

    The Securities and Exchange Commission (SEC) Ghana, is the apex regulatory body of the Securities Industry in Ghana. It is backed by and operates with the following legislations:

    Securities Industry Law (SIL) 1993, PNDCL 333

    Securities Industry (Amendment) Act (SIA) 2000, Act 590

    Legislative Instruments (LI 1695 and LI 1728)

    The Commission was established in accordance with the SIL 1993, PNDCL 333.

    It was called the “Securities Regulatory Commission under the SIL, PNDCL 333

    It operated under the supervision of the Governor, Bank of Ghana. The Bank of Ghana set up a Capital Market Desk to regulate the Industry.

    The Securities and Exchange Commission was formally set up in September 1998 as an independent regulator of the capital market in Ghana. It became the Securities and Exchange Commission by an act of Parliament, Securities Industry Amendment Act, 2000(Act 590)

    Its name was changed from Securities Regulatory Commission to Securities and Exchange Commission. A new Act, Securities Industry Act, 2016(Act 929) was enacted to expand the powers of the SEC. This new law replaces the Securities Industry Law, 1993(PNDCL 333).

    Last modified: August 10, 2017

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