Ghana's Securities and Exchange Commission (SEC) has placed investor protection above the commercial interests of market operators. This decision sets a new regulatory philosophy for transforming the nation's capital market into a significant long-term financing source. The SEC aims to build trust and confidence, which are crucial for market stability and growth.
Deputy Director-General Mensah Thompson stated that investor interests will always take precedence when conflicts arise. He acknowledged the challenge of imposing strong supervision without hindering innovation and market expansion. This balance is critical for developing a robust financial system in Ghana. The SEC believes that a trustworthy market will attract more participation and investment.
This policy is central to an ongoing debate about Ghana's financial future. The SEC is seeking increased resources to bolster its regulatory capacity. Meanwhile, fund managers and investors are questioning the cost of new levies, particularly those based on assets under management. This creates a difficult trade-off: effective supervision requires funding, but high costs can deter investment. Ghana's financial system has historically relied heavily on banks, which often provide shorter-term financing. The SEC aims to shift this dynamic by positioning capital markets as a development tool. This would connect long-term savings with projects needing patient finance, such as infrastructure and businesses.
Mensah Thompson emphasised that the SEC's primary mandate is to protect investors. He made these remarks during a NorvanReports–Economic Governance Platform X Space discussion. Thompson highlighted that financial systems globally thrive on trust and confidence. Without these elements, markets can easily collapse. This principle guides the SEC's approach to market supervision.
The SEC's expanded responsibilities include supervising the Ghana Stock Exchange, asset-management companies, and broker-dealers. It also covers issuing houses, transaction advisers, and the Central Securities Depository. The Commission is also developing regulations for virtual and tokenised assets, reflecting increasing market complexity. Thompson pointed to Ghana's roughly GH¢120 billion in pension assets as evidence of significant domestic savings. He believes these funds could be channelled more effectively into productive investments. A well-structured domestic capital market could also reduce the government's reliance on expensive external borrowing. This would provide greater financing flexibility for the nation.