SEC warns against 23 unlicensed investment firms in Ghana; full list released

The Securities and Exchange Commission (SEC) has issued a public warning, urging Ghanaians to avoid investing with 23 unlicensed investment entities operating on social media and online platforms.

According to the regulator, the listed companies are promoting and offering investment products without the required licence to conduct capital market activities in Ghana, contrary to the Securities Industry Act, 2016 (Act 929), as amended.

The SEC said it is working closely with law enforcement agencies to identify and prosecute those behind the alleged illegal investment schemes.

SEC warns public against illegal investment schemes

In a public notice, the SEC stressed that none of the 23 entities has been authorised to offer investment products or services in Ghana.

The regulator warned the public to exercise caution and refrain from investing in any scheme operated by these entities.

"The SEC has not licensed any of the listed entities to carry out capital market activities as mandated under Section 3 of the Securities Industry Act, 2016 (Act 929), as amended," the Commission stated.

It added that investigations are ongoing and that enforcement action will be taken against those responsible for operating the unlicensed schemes.

Full list of 23 unlicensed investment entities

The SEC identified the following entities as operating without the required licence:

1. Afri Hub

2. BG Wealth

3. BP Investment

4. Creative Walker Promotion Company (CWPC)

5. Dallmayr

6. Expert (Expect) Option

   READ MORE: BoG warns refusing Ghana cedi coins is illegal, offenders risk jail

7. GAIP Securities Learning & Exchange Group

8. Ghana Vest

9. Harvest Fund

10. Infarms/Secure Farm

11. Kukafor Platform

12. Mazzuma

13. Medisyne Trade

14. NIO Platform

15. Profit Rise Invest

16. Quant Vest Stock Exchange (QVSE)

17. QVES

18. QX Broker/Qumatix

19. Smart Gain

20. Yepbit Trading

    READ MORE: West African leaders approve $25bn Nigeria-Morocco gas pipeline

21. ZEC

22. ZEC FX

23. Bonchat Ultima Cryptocurrency Group

SEC collaborating with law enforcement

The Commission disclosed that it is collaborating with the Ghana Police Service and other law enforcement agencies to clamp down on individuals and organisations operating the unlicensed investment schemes.

The SEC said these operations pose significant risks to investors and could result in financial losses for unsuspecting members of the public.

Verify investment firms before investing

To protect investors, the SEC urged the public to verify the licensing status of any company offering investment products before committing funds.

Members of the public can confirm whether an investment company is licensed by contacting the SEC through its official communication channels, including:

• Toll-free line: 0800 100 065

• Main line: 0302 768 970–2

• Email: info@sec.gov.gh

The Commission advised Ghanaians to remain vigilant and report suspicious investment schemes to help protect the integrity of the country's capital market.

SEC reiterates investor protection mandate

The Securities and Exchange Commission is Ghana's statutory regulator responsible for overseeing the country's securities industry under the Securities Industry Act, 2016 (Act 929), as amended by the Securities Industry (Amendment) Act, 2021 (Act 1062).

As part of its mandate, the SEC monitors activities within the capital market, safeguards investors, and regularly publishes notices to alert the public about illegal investment schemes and other risks.

The latest warning was issued pursuant to Sections 3 and 208(c) of the Securities Industry Act and forms part of the Commission's ongoing efforts to promote a fair, transparent and secure investment environment in Ghana.