The securities and exchange commission (SEC) is working on a draft to present new guidelines on third party and related transactions.
This SEC believes will address the misappropriation of investments funds by Fund Management firms. The third party and related transactions was the major cause of the collapse of Fund Management firms forcing the clean up of the securities industry.
Addressing participants at the Tesah Capital Webinar, Deputy Director of SEC Paul Ababio, said his outfit has introduce conduct of business guidelines to deal with corporate governance weakness.
“What we learnt from the sector clean up was that there was corporate governance weakness. Due to that we have introduced conduct of business guidelines in which we require market operators to issue annual reports. we also found out that there were related transactions that were not done transparently so we are working on investment guidelines for fund managers,” he pointed out.
Meanwhile Senior lecturer at the University of Ghana Business School, Dr. Elikplim Komla Agloyor, raised concerns on the need for Ghanaians to do due diligence when investing.
“Don’t chase abnormal returns. What returns will we classify as abnormal returns, 10% a month? I think it’s abnormal but currently if you buy treasury bill instruments they are going between 12 and 13%… that’s understandable, that’s not like 120% a year. Or if you are doing the equity market, the average return you could get is 20% a year. These are returns that also compensate you for inflation. Beyond that i think you should also be careful,” he said.
A board member of Tesah Capital, Dr. Justice Yankson assure investors that his outfit will exhibit compliance and prudence in it’s financial transactions. “We are going to ensure that at all times, we are compliant and up to date on everything that the regulator require of us”, he said.
Source: www.ghanaweb.com
