Starr Business has chanced on a sensitive document notifying all investment banking firms about the intention of SEC.
SEC is expected to make an announcement soon and will give timelines for the firms to meet the capital requirement or lose their license.
But some stakeholders in the investment bank space have described the proposed 4900% increase as astronomical.
As a result, through their Association, they are drafting a proposal to explain why the proposed increase will not only collapse more than 50% of investment banking firms but also further discourage the already depressed savings culture in the country.
One of the proposals from Investment Bakers is for the amount to be reduced and staggered over some years.
An investment banker told Starr Business’ Osei Owusu Amankwaah that, players in the sector understand the move since the last time the sector’s minimum capital was increased stretches for about a decade.
He, however, said the many anomalies which have pushed for the proposed increase is at the door step of the regulator and investment bankers should not be punished for it.
SEC on May 8 2018, warmed the public from dealing with 10 investment banking firms dealing in fund management over regulatory issues. The 10 are under investigation for numerous pending complaints levelled against them by the investing public centering on violation of provisions of the Securities Industry Act, 2016 (Act 929)
The companies are;
MEC-Ellis Investment Ghana Ltd.
Weston Capital Ltd.
Brooks Asset Management Ltd.
Kamaag Kapital Gh. Ltd. (formerly Lifeline Asset Management Ltd.)
MAK Asset Management Ltd.
EM Capital Partners Ltd.
MET Capital Group Ltd.
Canal Capital Ltd.
Man Capital Partners Ltd.
Alpha Cap Securities Ltd.
The Commission informed the general public that anyone who engages in any transaction with any of these companies, could be exposing him/herself to avoidable risk. Read Full Story