Financial Market Rules and Regulations : Why They Matter

Rules and regulations are important everywhere: in our homes, schools, workplaces and even the investment industry. Without them, investors, like yourselves, could be ‘blind’ victims to wrong investment products that are not suitable for you. The usual outcome would be loss of some or all of your money. In the investment industry, these rules and regulations are set and enforced by government bodies or organizations authorized by the government bodies.

The Ghana Securities and Exchange Commission (the “SEC”) has been lawfully authorized to set and enforce rules in collaboration with other government bodies in and out of the country. They protect your money from manipulative and abusive investment deals. They also ensure fairness in your investment transactions by requiring fund/investment managers (investment professionals who invest your money) to provide full transparency when transacting with clients. This means that you can make any request regarding your investment to your fund/investment manager, and they will be obliged to assist you.

The SEC also requires your fund/investment manager to solicit some information from you before investing (i.e. Know Your Customer or KYC). This information, if accurately provided will allow your fund/investment manager to verify your identity and ensure that their investments are carefully curated to meet your financial needs. Providing false information may lead to loss of funds and could derail you from the path to achieving your financial goals.

In addition to the above, you should also request for the SEC license of your fund/investment manager to confirm if they are in good standing with the SEC before investing with them. It is advisable to do this every year because it is possible to have a fund manager in good standing with the SEC today and not be in good standing tomorrow.

Have you requested for the SEC license of your fund/investment manager? If not, do so immediately! Unlike cars, which you can test drive to determine quality, investment products are intangible (i.e. you cannot feel anything of substance to determine quality before investing). This attribute of investing makes it critical to perform due diligence in order to determine the quality of financial products before investing.

At Achieve, we make it a priority to uncover every information about our investment partners before giving you access to them. We do this with you in mind.

Dream. Execute. Achieve

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