SEC to Crack Down on Unlicensed Online Investment Schemes
By Praisebell Rosemond Larbi
The Securities and Exchange Commission (SEC) has announced a renewed crackdown on unlicensed online investment entities preying on the public with unrealistic profit promises and fraudulent financial products.
According to the Commission, enforcement measures are being tightened alongside enhanced public education and reforms to the regulatory framework to ensure a more transparent and secure investment environment in Ghana.
Speaking at the second edition of the ‘Time With SEC’ public education series held in Koforidua, the Director-General of SEC, Dr. James Klutse Avedzi, said the initiative forms part of the Commission’s broader strategy to combat the growing wave of Ponzi-style schemes and unregulated digital investment platforms.
Dr. Avedzi revealed that a newly amended Securities Industry Act is expected to be passed into law by the end of 2026, empowering the Commission with stronger oversight and enforcement tools.
“The SEC is strengthening its oversight and regulatory powers. The overhaul of the Securities Industry Act, Act 929 of 2016, as amended by Act 1062, will make the law more robust and responsive to modern investment challenges,” he explained.
He warned that the proliferation of unlicensed investment schemes, particularly those operating through social media and mobile applications, poses a serious threat to investor safety and financial stability.
“We are working closely with the Ghana Police Service, the Economic and Organized Crime Office (EOCO), the Judiciary, and the Attorney General’s Department to ensure that individuals and entities that defraud investors face the full consequences of the law,” Dr. Avedzi stated.
He disclosed that the new securities bill has undergone extensive review and will soon be submitted to the Ministry of Finance for consideration and onward submission to the Attorney General’s Department. “It will subsequently be laid before Parliament for passage into law, potentially before the end of 2026, all things being equal,” he added.
Dr. Avedzi stressed that the Commission’s renewed focus is not only on enforcement but also on prevention through education. He said SEC is intensifying public sensitization campaigns to help investors identify legitimate licensed operators and avoid falling victim to fraudulent schemes that promise “unrealistic returns.”
The ‘Time With SEC’ program, which has become a flagship initiative of the Commission, seeks to educate the public on sound investment practices, licensed operators, and the rights and responsibilities of investors under Ghana’s financial laws.
Analysts say the proposed legislative overhaul will mark a major step toward cleaning up Ghana’s capital market, bolstering investor confidence, and supporting the government’s broader financial inclusion and digitalization agenda.
