The Ghana Securities Industry Association (GSIA) has assured the investing public that the Securities sector in the country remains robust despite the recent collapse of some fund management firms.
It would be recalled that the Securities and Exchange Commission (SEC) on Friday, November 8, 2019, revoked the licenses of some 53 fund management firms.
But GSIA in a press release said there was no need for panic withdrawals by investors.
It stated that “the industry is no worse off today than it was before the action by the SEC.”
According to GSIA, 21 of the firm’s whose licenses had been revoked were already not operational and several of the 32 who were operating were already facing serious governance, operational and liquidity challenges.”
It added that ” there are several robust fund management firms that are liquid and operating with healthy balance sheets.”
GSIA has therefore encouraged SEC to provide clarity on the path forward for investors whose monies were with collapsed firms.
It expressed the belief that that will reduce investor panic and help to forestall a run on the industry.
“There must also be a clearly spelt out process for firms whose licenses have been revoked and feel they have a genuine case for review,” according to the release.
BY Melvin Tarlue