Securities and Exchange Commission warns against 2 investment companies on social media

The Securities and Exchange Commission (SEC) recently brought to light the unauthorized operations of two investment companies in a press release dated July 1. This action is part of the SEC’s responsibility to oversee activities in the securities industry and safeguard investors by disseminating pertinent information to the public regularly.

In the statement, the SEC warned the public about the existence of certain entities operating on social media platforms that are promoting and offering unlicensed investment products in the country. The identified entities include News GH, which is advertising an unlicensed investment product called “Gold AI Rise Platform,” and Ghana News, which is advertising an unnamed unlicensed investment product promising unrealistic returns with no risk attached.

It was emphasized by the SEC that none of these entities have been licensed to conduct Capital Market activities as required by Section 3 of the Securities Industry Act, 2016 (Act 929) as amended. The SEC is currently collaborating with law enforcement agencies to take action against the individuals behind these entities. The commission advised the public to exercise caution and refrain from investing in these unauthorized products. To verify the licensing status of any entity offering investment-related products or services, the general public was urged to contact the SEC through its toll-free line number 0800100065 or the main-line number 0302768970-2, or alternatively, send an email to [email protected].

The SEC, established by the Securities Industry Act, 2016 (Act 929) and amended by the Securities Industry (Amendment) 2021 (Act 1062), aims to regulate and foster the growth of an efficient, fair, and transparent securities market where investors and market integrity are safeguarded.

It is essential for the public to remain vigilant and avoid falling prey to unlicensed investment schemes that promise unrealistic returns. By consulting the SEC for information on the legitimacy of investment opportunities, individuals can protect themselves from potential financial harm. The SEC’s efforts to work with law enforcement agencies to crack down on unauthorized investment operations demonstrate its commitment to preserving the integrity of the securities market and protecting investors from fraudulent activities.