Deputy Director of the Securities and Exchange Commission (SEC) has told JoyNews that security operatives are pursuing some 21 fund managers who are believed to have escaped with the investments of their clients. 

According to Paul Ababio, aside the pursuit by the Economic Organised Crime Office (EOCO) and the Criminal Investigations Department of the Police Service, the Attorney-General’s office is also looking into the matter and is expected to take the needed legal measures.

“We know the whereabouts of some of the 21 fund managers and the EOCO and CID are conducting a people trace of the other fund managers and I can assure you that we will get the assets back into the system,” he made this known on PM Express on Monday, November 11.

Mr Paul Ababio’s outfit last Friday revoked the operating licences of 53 investment companies.

Blackshield Capital Management is among 32 operating firms whose licences have been revoked.

SEC revocation list

The revocation of the licences, according to the regulator, is to protect the integrity of the securities market and investors.

At a stakeholder meeting Friday before releasing a list of the affected companies, the Director-General of the SEC, Rev. Daniel Ogbarmey Tetteh, said troubled securities firms that have still not been able to address concerns raised about their operations over the years, are among those affected by the action.

The full impact of the revocation of the licences of some 53 investment firms, is emerging.

About ¢8b investments of 81,700 clients, made up of 44,000 institutional customers and 7,700 retail customers are involved, the Deputy Director disclosed. 

Jobs may not be heavily impacted

SEC postulates, its actions may not affect employment severely. 

Frank Ababio based his optimism on the fact that the regulator had licenced only 249 investment operators.

Of the above number, some had ceased working because their firms had collapsed before the SEC action.

“And then we had the remaining firms, some of whom had downsized,” he added.

Explaining the actions of the regulator in relation to job losses, he said, their actions rather portend well for employment.  

“We considered that protecting investors and having a stronger capital market coming out of this action, will create so many jobs for the lawyers, accountants and service providers.

“Do we want to be gainfully employed or just employed,” he asked