SEC earmarks 21 fund managers for ‘possible’ collapse 46 of existing 128 firms face major regulatory anomalies

Twenty-one fund management firms operating in the capital market have been identified by the Securities and Exchange Commission (SEC) as being in a stage of near bankruptcy in the capital market.

Should SEC , revoke the licenses  of the 21 companies whose names are yet to be  disclosed, the action  will make in total, 32 fund management firms that would have been liquidated this year, with five more months still left to finish 2019.

Meanwhile, the Goldstreet Business has also confirmed from SEC itself that about 46 fund management firms out of the 128 being regulated by the Commission, are currently having major regulatory issues and may have their licenses suspended by the SEC at any time.

The 46 include, All-Time Capital, Alpha Cap Securities, Avant Capital, AXE Capital Advisors, Beige Capital Asset Management, Cambridge Capital Advisors, CDH Asset Management, Continental Capital, Corporate Hills Investment, Delta Capital, Dusk Capital, FirstBanC Financial Services, Fromfrom Capital, Global Investment Bankers, Gold Coast Fund Management, GoldStreet Fund Management Services, Heritage Securities, Ideal Capital Partners, Investa Capital Fund Management.

The rest are, InvestEye Capital Partners, Legacy Fund Management, Liberty Asset Management, Linx Capital, Man Capital Partners, McOttley Capital, Mutual Integrity, NA Jones Capital, National Trust Holding Company (NTHC), Nesst Capital, Nickel Keynesbury, Nordea Capital, Omega Capital, Prestige Capital, QFS Securities, SGL Royal Kapita, Sirius Capital, Standard Securities, Strategic Hedge Capital, Supreme Trust Capital, Tikowrie Capital Limited, Ultimate Trust Fund Management Limited, UMB Investment Holdings, UniSecurities (Ghana) Limited, Universal Capital Management, UTRAK Capital Management Ltd, and Wealth Vision Financial Services Limited.

In January, six previously licensed fund management firms voluntarily requested to cease operation for various reasons. The six comprised HFC Capital Partners Limited, Attai Capital Limited, Serengeti Capital Limited, Indigo Investment Management Limited, Verit Investment Advisory Limited and Waxson Investment and Pension Management.

Following this in April, the SEC  revoked the licenses of five companies, namely Georgetown Capital Partners Limited, Equity Capital Limited, Index Analytics Limited, DM Capital Limited and Oxygen Advisory and directed them to stop carrying out any fund management activities.

The Deputy Director General of SEC, Mr. Paul Ababio told the Goldstreet Business that the Commission has receive complaints about the 21 firms now facing possible closure by the regulator.

“What we are currently doing is to access the level of exposure and risk of those businesses to be able to get a better understanding of their modus operandi,” he said.

Mr. Ababio, who was speaking at the 2019 Stanlib Dialogues event, said though SEC performs regular inspections in the sector to know the state and conduct of these companies, the Commission needs third parties to volunteer information on the conduct of licensed capital market operators to inform regulatory decision making.

The SEC, however maintained that while most of the 21 firms will have to wind up operations, although some may involve suspension, others restructuring, with the rest being offered the opportunity to recover their financial standing based on the roadmap that will present to the Commission.

The Stanlib Dialogues is an annual public forum organized by Stanlib Ghana, a multi-specialist investment management and advisory firm  that brings together leading financial market players in the industry to discuss relevant issues and chart a path for growth. It is a subsidiary of Stanbic Bank Ghana.