The Securities and Exchange Commission (SEC) says financial institutions need to scrutinise and tighten its investigative structures on customers to minimise fraud in the industry.
‘Financial institutions must go beyond the Know Your Customer (KYC) policy of verifying the identity of it clients. It is very important to ensure proper KYC and not just the National Identification Card. The institutions need to find out the sources of income of the client,’ said Mrs. Leoni Atayi, Manager, Fund Management, SEC.
She these comments at the official opening of ManCapital Limited, an investment advisory and Fund management firm.
“At times we have market operators who call us and say ‘I have seen this institution operating, I have seen this person issuing a prospectus; do they have an operating licences?’ ‘If you are not sure of any client’s dealings, draw our attention; we will not mention your name, we will investigate so that we sustain and control the market operations,’ she advised.
Mrs. Atayi suggested that institutions must encourage prospective investors and clients to cultivate interest in reading and learning about products and services in the financial market.
‘Insomuch as clients are prime investors, you should encourage them to develop an interest in reading and learning. ‘Once you are protecting the investors, we also advise that you encourage them to do some learning and reading; at times they come because they have heard what you’ve done. But let them know what they are in to do, because when something goes wrong they will hold you responsible.
‘A lot of clients come and go; they don’t ask questions, they don’t even check if the institution is regulated or if you have the licence to operate.’
Mr. Michael Allan Asare, Chief Executive Officer of ManCapital Limited, said: ‘We will encourage our investors to embrace the culture of reading and learning to enhance their understanding of the financial systems.
‘Prospective investors should also try to do some information search on the institution they have an investment interest in, but it is our business to bring their understanding on the need for them to invest to make sure that their monies are working for them; that is the most important thing.’
Mr. Asare explained that ManCapital Limited practices strict compliance with regulations on Anti-Money Laundering, whereby it observes good governance and has structures in place to ensure that its business is properly run to achieve long-term profitability and growth; and also to adhere to client mandates and achieve superior returns.
‘We grew up from an indigenous background whereby people prefer keeping their monies in their rooms. This is what the West has beaten us with, because they make their monies work for them. I think this is the time we need to ensure that our monies work for us. He indicated that the firm has several product lines, ‘so when one walks into our premises as a person with a mind for investment, we have a chat with him or her to know the calibre of person he or she is so that it will aid us in advising on the investment plan that will work’.
Augustine Baidoo, Chief Operating Officer of ManCapital Limited, indicated that the company is committed to providing investment services consisting of private wealth management for both individuals and institutions, provident fund management for unions of companies, private equity, specialised managed accounts, and structured finance.
‘We seek to do things differently. Our corporate finance activities include debt and equity capital raising for small- and medium- scale enterprises; business valuation, due diligence; mergers and acquisitions, and corporate restructuring.
‘We want to encourage people to do more investment, this is all about education; the perception of people concerning banking and investment is quite weird, and that leaves us with a lot of work to do when it comes to investor education,’ Mr. Baidoo stated.
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