The Securities and Exchange Commission (SEC) says it is monitoring the recently launched online gold trading product by embattled gold dealership firm, Menzgold Ghana Limited.
According to the head of legal affairs at SEC Nii Oman Badoo, once the Commission’s investigation suggests that its regulations are being flouted by the online trading, the regulator would not hesitate to step in.
He was addressing the media ahead of SEC’s 3rd Capital Market Conference to celebrate the Commission’s 20th anniversary. The two-day conference starting on November 21 at the Academy of Arts and Sciences is under the theme: “Ghana Beyond Aid: The Role of the Capital Market”.
Menzgold has been embroiled in a legal tussle with the regulator after the latter’s directive to the firm to stop taking gold deposits.
However, on November 5, Menzgold launched an online Gold/Collectibles Trading product that would make it possible for “existing transactions to be migrated unto it for immediate prompt extra value & principal payments in order for business to proceed as usual”.
But Nii Oman Badoo indicated that SEC would not rush into taking a decision on the online gold trading without proper investigation.
“For now, it is very limited information that they have launched an online platform so when such information comes, we have an investigation team; we will investigate if there is a platform like that and we will look at the features of the platform.
“Once it falls within an activity that must be regulated within Act 929, the SEC will advise itself… We are monitoring the situation…if we feel that it has issues with the provisions that our regulations have, we will again trigger our regime…If it doesn’t fall within our regime, we will not say anything.”
Leniency and amenable
Though there have been reports suggesting that the Chief Executive Officer of Menzgold, Nana Appiah Mensah is pleading with SEC to be lenient with his company, his request is yet to get to the Commission.
Oman Badoo said his outfit was yet to receive “official correspondence from Menzgold on pleading for leniency”.
He said if the company is interested in out of court settlement, the lawyers know the advice to give them and procedure to follow.
He underscored that it is in the interest of SEC to develop the capital market and would therefore be “amenable” if Menzgold is ready to take the necessary step.
By Isaac Essel | 3news.com | Ghana