SEC maintains licence revocation of Nduom’s Black Shield, four others
The Securities and Exchange Commission (SEC) has sustained its position on the withdrawal of some five investment companies.
At the same time, one firm won its case, which compelled the SEC to restore its licence.
Following a review of the suspension of some 53 fund management firms, SEC upheld that Kron Capital Limited, Kripa Capital Limited, Frontline Capital Advisors Limited, Intermarket Asset Management Limited (formerly CDH Asset Management Limited) and Dr Papa Kwesi Nduom’s Black Shield Capital Management Limited (formerly Gold Coast Fund Management Limited) do not have the authorisation to operate.
This was after SEC commissioned an Administrative Hearing Committee (AHC) to probe an appeal by eight of the investment firms.
After the hearing, Monarch Capital Limited had its licence restored.
However, Integrity Fund Management Limited and Legacy Fund Management Limited had their licence revocations subjected to six-month suspensions.
SEC said the companies exercised their right under section 19 (3) of Act 929 and appealed to the AHC for re-consideration of the revocation decision.
The AHC considered the appeals and took the latest decision based on new evidence available to it.
Meanwhile, three companies have resorted to the law courts to have their grievances addressed. These are Firstbanc Financial Services Limited, Apex Capital Limited and Omega Capital Limited.
It would be recalled that SEC collapsed the 53 firms on November 8, 2019, because of liquidity challenges and some regulations that were flouted by the firms.
“Essentially, they have failed to perform their functions efficiently, honestly and fairly and in some cases are in continuing breach of the requirements under relevant securities laws, rules or conditions, despite opportunities provided to them by the SEC within a reasonable period of time to resolve all regulatory breaches,” the regulatory body stated at the time.