The Securities and Exchange Commission (SEC) has issued new operating guidelines and a corporate governance code that will regulate the capital market and enhance confidence in the sector.
The new directive is in accordance with Section 209 of the Securities Industry Act 2016, (Act 929).
The guidelines include licensing requirements for market operators, regulatory sandbox licensing requirements and conduct of business guidelines.
According to a statement by the SEC, the move is in line with its mandate of regulating and promoting the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.
Per the new guideline, a primary dealer will require a minimum capital of GHc400 million before it can operate, whilst fund managers will need a minimum capital of GHc2million to operate. A custodian will have to run a business with a minimum capital of GHc50 million.
Others are clearing housing (GHc50 million), Broker-Dealer (GHc1.5 million), Registrar (GHc1 million) and Securities Depository (GHc50 million).
The new minimum capital requirements for market operators are expected to be in full force by end of next year.
Existing market operators are also expected to be fully compliant by the end of 2021. New entrants would be required to meet the new requirements immediately.
Below is the list of licensing requirements towards the new directive
MINIMUM CAPITAL REQUIREMENTS FOR MARKET OPERATORS
Regulated activity Minimum capital (GHC)
Broker-Dealer 1,500,000
Clearing House 50,000,000
Credit Rating Agency 1,000,000
Custodian 50,000,000
Fund Manager 2,000,000
Investment Adviser (Corporate) 1,000,000
Investment adviser (Individual) 200,000
Issuing House 1,000,000
Margin Trader 2,000,000
Market Maker 3,000,000
Nominee 1,000,000
Primary Dealer 400,000,000
Registrar 1,000,000
Securities Depository 50,000,000
Securities Exchange 10,000,000
Trustee 50,000,000
Underwriter 2,500,000
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