SEC embarks on intensified public education to curtail fraudulent financial schemes
The Securities and Exchange Commission (SEC) has admitted that the evolving capital and investment market is a contributory factor to the proliferation of fraudulent investment schemes. These schemes attract investors, robbing them of their capital and hard-earned resources.
The Deputy Director General of Finance at the Commission, Dr Paul Ababio, disclosed that there is an ongoing public education to caution potential investors against fraudulent but enticing schemes.
Ghana’s banking and investment sector is seemingly getting infiltrated by unscrupulous individuals who use enticing investment returns as a cover to defraud people.
The Securities and Exchange Commission has been mandated to regulate and promote the growth of an efficient, and transparent securities market in which investors and the integrity of the market are protected.
According to Dr Paul Ababio, there’s an ongoing measure to guard against ponzi schemes.
“The capital market has evolved, and our regulatory exercise occurred around the time of financial sector clean-up. The problem is also because of interconnectedness. Crises in one sector can affect the other. “
He added that the Commission in 2018 set up the Financial Stability Council which had all financial sector major regulators at a table, and allowed them to coordinate and identify risks that are emerging in the financial sector.
“Public education across all demographics and media engagement are in place to curb these schemes. Even in advanced markets, you have these kind of schemes going on. We cannot halt them completely, so informing people to make informed decisions is the way to go. Being careful and deliberate is important,” he said.
He was speaking at a Financial Literacy Conference designed to educate students on the role of the SEC in the financial sector, how to identify and detect fraudulent schemes, and make smart financial choices.
The over one thousand and five hundred participants were also taken through Career Opportunities in the Financial Sector.
The investor education program, dubbed “Time with the SEC” SHS Edition forms part of the 25th anniversary of the Commission.
Dr Ababio, who spoke on the theme, “Deepening and diversifying Ghana’s capital market towards a more resilient financial system”, urged the youth to cultivate the habit of making smart economic choices.
He observed that because today the youth cannot be detached from technology, it is relevant to afford this dynamic demographic the necessary financial literacy.
“Incomes among the youth are low. They don’t have disposable income. They are being taken care of by their parents. And so they need to understand what the opportunity set is, and what they can do with the disposal income. These potential investors need to know what the company uses their money for. It means they would need information to inform their decisions,” he said.
The Financial Literacy Conference was organized by the Securities and Exchange Commission (SEC) in partnership with the Young Investors Network.
President of the Young Investors Network, Joshua Quaye Mensah, added that financial literacy is not just about understanding the stock market or reading financial statements, but empowering one’s self to make informed decisions, understand the risks and rewards in investments and distinguishing between long-term and short-term gains, and navigating through them with confidence.
Beneficiaries were glad to receive the financial education.
Source: Ghana News
