Chief Executive Officer of an investment firm, Dusk Capital Ltd., has expressed optimism in his outfit's ability to meet a new capital requirement by the regulator, Securities and Exchange Commission (SEC).
According to Bernard Osei-Tutu, SEC has served his office, together with other firms, a letter proposing an increase in the minimum capital requirement from GH¢100, 000 to GH¢5million for the industry.
“We at Dusk Capital, we are ready to commit all the resources that we have to make sure that on the capital front we are duly capitalized,” he said.
Even though SEC is yet to officially announce the new minimum capital requirement, the Dusk Capital boss believes the increase is vital for the industry.
Mr Osei-Tutu has however disclosed to JoyBusiness that his outfit together with other firms has received a letter from the SEC about plans to increase the capital to GH¢5 illion cedis.
He bemoans the proposed increase as being on the high side – what he describes as ‘too astronomical.’
“I think in as much as we all advocate that there must be an increment, I think the jump is too astronomical; I am of the view that we must do it organically because you can’t move from GH¢100,000 to GH¢5 million,” he said.
He says the proposal is still on the negotiation table and plans are underway to engage the regulator by the Securities Industry Association to reach a consensus.
But according to information gathered by JoyBusiness the proposed amount of GH ¢5million is likely to go up.
In a public notice issued by SEC dated May 8, 2018, a total number of 10 companies are currently under investigation for numerous complaints levelled against them bordering on violation of provision of the Securities Industry Act, 2016 (Act 929).
These 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 Group Ltd., Man Capital Partners Ltd., and Alpha Cap Securities Ltd.
The Commission has cautioned the public against dealing with these companies and has assured of further notice in due course.
Dusk Capital CEO has lauded SEC for this resolve with the sureness that it would bring sanity into the industry.
He said, “I think it’s a wakeup call for all of us within the industry to do the right thing going forward and put in the right structures, the proper corporate governance and make sure that we don’t fall prey.”
Mr Osei-Tutu spoke to JoyBusiness at the launch of Dusk Capital flagship PR campaign under the theme, ‘Conquer your Fears’ which seeks to promote capital investment.
He underscored the risk associated with investment following recent regulatory sanctions in the financial space.
“Every day we wake up with the news of either a collapse or a takeover by the BOG of one bank or the other; so within the populace, there’s that fear of what will happen next so nobody wants to invest again,” he said.
“So we thought of what is going on and we were like this is the right time to start such a campaign.” Mr Osei-Tutu added.