The Securities and Exchange Commission (SEC) has cautioned the public against Golden Empire and Loom as the regulator confirms they are unlicensed.
According to the Director General of the Securities and Exchange Commission, Rev. Daniel Ogbarmey Tetteh the public needs to be wary of such institutions to avoid being prey to scams.
He said, “We have received some notice from people through our channels by which people notify us of these schemes and we will follow due process to deal with the matter.”
He added that “it is important that investors should ask questions before they place their monies with these firms and one of the fundamental questions is that what is the underlying investments? Because if anyone promises you high returns it means that there are high risks and you are better advised to look for the exit.”
Revocation of license
The SEC in April 2019 revoked the licenses of five investment companies.
The firms include Georgetown Capital Partners Ltd, Equity Capital Ltd, Index Analytics Ltd, DM Capital Ltd and Oxygen Advisory Ltd at their own risk, according to the regulator.
SEC revoked their licenses pursuant to Section 122 of the Securities Industry Act, 2016 (Act 929).
The move by the Securities and Exchange Commission is to help sanitize the market.