The Securities and Exchange Commission (SEC) has announced the establishment of an Investor Protection Fund aimed at safeguarding investors’ interests, particularly in the wake of the recent fallout related to the Deferred Dividend Entitlement Plan (DDEP). This initiative reflects the SEC’s commitment to enhancing investor confidence and ensuring market stability.
James Klutse Avedzi, the current Director-General of the SEC, emphasized the importance of protecting investors from unforeseen financial risks emanating from investment schemes such as the DDEP. The Investor Protection Fund is designed to provide a financial safety net that will cover eligible investor losses should any listed entity fail to meet its obligations.
The creation of this fund marks a significant step in strengthening Ghana’s capital market infrastructure. By implementing this protection mechanism, the SEC aims to promote transparency, accountability, and trust, thereby encouraging broader participation in the securities market.
As the SEC rolls out this protective measure, it plans to collaborate with market stakeholders to develop sustainable policies that balance investor safety and market growth. Continuous education and awareness campaigns will also be part of the SEC’s strategy, to enlighten investors about their rights and the safeguards available to them.
For more information on the SEC’s Investor Protection Fund and its implications for market participants, visit the official GhanaWeb page: SEC unveils plans for Investor Protection Fund after DDEP fallout.
