The Deputy Director-General in charge of Legal at the Securities and Exchange Commission (SEC), Mr Alexander Williams, says the Securities Exchange Bill is set to enhance the development of the capital market when it receives presidential assent this year.
The bill, which was passed by Parliament in July, is expected to facilitate the development of the market and also enhance the legal framework to regulate new sectors.
Mr Williams made the call at the launch of the ‘TTL Income Haven Fund’ in Accra.
“The bill will facilitate the development of the securities market, provide a legal framework to accommodate all forms of securities presently and also strengthen the operational independence of the commission to effectively and efficiently regulate the securities industry,” he said.
He pointed out that the law would also create the opportunity for market operators to add to their bouquet of products.
The capital market has been waiting for the regulation which will enable them to trade in real estate-linked securities, usually called REITS.
While investment bankers and asset managers are not allowed to directly invest in financing real estate projects, the new Securities Bill, when it becomes law, will permit such funds to be channelled to assets that are linked to the real estate.
That way, the funds under management could be channelled into financing real estate property development, a win-win for the economy.
Mr Williams added; “the law will also strengthen the commission’s mandate to tighten regulations and increase investor education with the aim of ensuring investor protection.”
The Securities Industry Bill, which was presented to Parliament in 2015, has been passed and is awaiting the President’s assent.
The bill seeks to revise and consolidate existing laws relating to the securities industry.
The laws that regulated the securities sector had been in place for over 20 years and as such some provisions had become obsolete, given the dynamic nature of the industry.
The Securities Industry Act, 1993 (PNDCL, 333) and Securities Industry (Amendment) Act, 2000 (Act 590) which currently provided the legal framework and regulated the sector, did not meet international standards and had led to the country being suspended from participating in the activities of the International Organisation of Securities Commissions (IOSCO).
The new law would, therefore, ensure compliance with IOSCO objectives and principles and provide a comprehensive legal framework for the securities industry in the country.
TTL Income Haven Fund
TTL Capital Limited, an integrated investment banking and financial advisory firm, has launched its first mutual fund TTL Income Haven Fund onto the Ghanaian market.
The fund is an open-ended mutual fund which seeks to achieve growth in income by investing in a diversified portfolio of fixed income securities in the short to medium term.
Units in the fund are being offered for GH¢1 during the Initial Public Offering (IPO) period which runs from September 16 to October 06, 2016.
The Fund Manager, Mrs Owusu Takyi, said the fund aims at outperforming the interest rates being offered on the 91-day government Treasury bills.
“TTL Income Haven Fund seeks to achieve growth in income while conserving principal. The fund aims to achieve its objective by investing in a diversified portfolio of fixed income securities in the medium to long term,” she said.
A unique feature of the fund, she said, was that there were no entry charges on the fund yet there was higher net returns on investment.
For his part, Mr Williams challenged the managers of the fund to use the opportunity to educate the public, especially the subscribers, on the product and introduce them to other products on the capital market in order to deepen the securities market.
“Potential investors are advised to study the investment profile and where necessary seek independent investment advice to enable them to make an informed decision,” he said.