SEC Prioritizes Investor Protection Fund to Rebuild Market Confidence

The Securities and Exchange Commission (SEC) has reaffirmed its commitment to restoring investor confidence through the development of an investment protection fund aimed at mitigating market risks and insulating investors from shocks.

Director-General of the SEC, James Klutse Avedzi, speaking at a stakeholder engagement session at Ho Technical University, underscored that the initiative is central to rebuilding trust in Ghana’s capital markets, particularly in the aftermath of the Domestic Debt Exchange Programme (DDEP).

“Furthermore, the development of an investment protection fund remains a key priority designed to mitigate risks and rebuild trust in the market following the recent past challenges. We talk about the DDEP like the minister has said,” he noted.

Mr. Avedzi explained that the Commission’s strategy extends beyond the fund to include robust market surveillance and decisive action against fraudulent and unlicensed operators threatening market stability.

“We are actively enhancing our market surveillance system to better detect irregularities and strengthen investor confidence,” he stated.

The SEC boss stressed that investor education remains a cornerstone of the Commission’s agenda to deepen market participation and protect the public from high-risk schemes.

“We organised a flagship program dubbed Time with the SEC investor education program nationwide because we recognise that a well-informed investor is a well-protected investor. When investors are enlightened and have access to relevant market information as well as diverse licensed investment products, they can create wealth, jobs, and fuel the economic growth of our beloved nation,” he explained.

Mr. Avedzi cautioned the public to steer clear of unlicensed firms promising unrealistic returns, warning such ventures are often fraudulent.

“If an investment promises returns that are too good to be true, they most likely are. Always verify the legitimacy of any investment opportunity and the license of the operator with the SEC. We are here to provide the tools, the knowledge, and the regulatory oversight to help you make sound decisions. Your financial future requires personal responsibility,” he added.

The SEC’s multi-pronged approach forms part of broader reforms to stabilise Ghana’s investment landscape and harness it as a catalyst for long-term economic growth and financial security for citizens.

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