SEC Cautions Investors on Suspected Fraudulent Schemes

In its public notice, the SEC stressed that none of the schemes presently being promoted on television have been approved, licensed, or authorised by the Commission. It therefore urged the public to exercise vigilance and avoid investing in products or services offered by unlicensed entities. The regulator emphasised that legitimate investment opportunities must undergo rigorous scrutiny and licensing procedures before being permitted to operate in Ghana’s securities market.

The Commission further warned individuals and groups involved in promoting these schemes that their actions constitute a criminal offence under Section 144(1) of the Securities Industry Act, as amended, and Section 294(1)(b) of the Companies Act. These provisions explicitly prohibit public invitations or advertisements relating to securities without proper licensing or clearance from the SEC. Violators, the Commission cautioned, risk facing severe legal consequences, including prosecution.

To assist the public in safeguarding their investments, the SEC encouraged individuals to verify the licensing status of any investment firm or promoter before committing funds. Verification can be done by contacting the Commission’s toll-free line (0800100065), its main office numbers (0302 768 970–2), or by emailing info@sec.gov.gh. This step, the SEC noted, is crucial in ensuring that investors engage only with authorised entities operating within the legal framework.

The Commission disclosed that several entities have already been identified as engaging in deceptive advertisements of this nature, though details were not immediately released. Investigations are ongoing, and the SEC reaffirmed its determination to clamp down on such practices in order to protect investors and preserve the integrity of Ghana’s financial markets.

Reiterating its mandate, the SEC underscored its commitment to maintaining a fair, transparent, and efficient securities market. It assured the public that it will continue to monitor and take decisive action against any individuals or organisations that attempt to exploit unsuspecting investors through fraudulent schemes.

The Commission’s latest warning serves as a reminder that investment decisions should be guided by caution, due diligence, and reliance on credible, licensed institutions. As fraudulent schemes evolve in sophistication and visibility, particularly through mass media channels, the SEC urged the public to remain alert and to report any suspicious activity to the appropriate authorities.