SEC moves to restore trust with Investor Protection Fund and Market Reforms

The Securities and Exchange Commission (SEC) has reaffirmed its commitment to restoring investor confidence in Ghana’s financial market with the planned introduction of an Investment Protection Fund.

This initiative, according to SEC Director-General James Klutse Avedzi, is a key part of ongoing efforts to stabilise the sector following recent shocks, including the Domestic Debt Exchange Programme (DDEP).

Protecting Investors and Cleaning the Market

Speaking at a stakeholder engagement session at Ho Technical University on Thursday, July 17, Mr. Avedzi said the Fund will help cushion investors against market risks while complementing reforms to boost transparency and accountability in the capital market.

“We are enhancing market surveillance and intensifying action against unlicensed and fraudulent investment schemes,” he noted, stressing that investor protection is at the heart of SEC’s regulatory agenda.

Investor Education at the Core

The SEC boss also highlighted the Commission’s nationwide investor education initiative, dubbed Time with the SEC, which aims to improve financial literacy and empower Ghanaians to make informed investment decisions.

“A well-informed investor is a well-protected investor,” Mr. Avedzi stressed. “Educated investors are less likely to fall victim to scams and can contribute meaningfully to wealth creation and national growth.”

Warning to the Public

Mr. Avedzi issued a caution against patronising unlicensed investment schemes, warning that promises of unusually high returns are often red flags for fraud.

“If it sounds too good to be true, it probably is,” he warned. “Always verify with the SEC before investing.”