Business News of Sunday, 8 October 2017
Firms operating in the securities and capital market are set to have their minimum capital requirement increased.
JoyBusiness understands the announcement which would soon be made will give operators up to a year to meet the new levels.
Director General of the Securities and Exchange Commission (SEC), Reverend Daniel Ogbarmey, told JoyBusiness the move was influenced by current developments in the economy and efforts to protect the investments in the country.
He noted that “if you take that one for fund managers for instance, currently is at ¢100,000, that’s woefully inadequate, so I would not give you any percentage indicator, but what I can say is that the increases would be significant”.
Which firms would be affected?
According to the Commission, the review would affect all the firms in the entire capital market including those operating as brokerage dealers, custodians, Fund Managers, Mutual Fund Managers, and Investment Advisors.
The rest are primary dealers, Unit Trust, Registrar, Investment Advisors, and Exchanges.
Most firms operating in the sector told JoyBusiness they welcome the move by the regulator, with some saying it was long over-due.
However, most of them were worried about the exact amount that the regulator would settle on, looking at the fact that the Director-General has indicated the review would be substantial.
This according to analysts bring to completion, moves to increase the capital requirement for an entire financial sector, that is the banking, insurance and the securities industries.