Finance Minister launches SEC’s 5-year strategic plan for market regulation

December 1, 2023
Finance Minister launches SEC’s 5-year strategic plan for market regulation

The Minister for Finance, Mr , has unveiled a comprehensive five-year strategic plan for the Securities and Exchange Commission (SEC), signalling a dynamic approach to market regulation and positioning the Commission as a top-tier securities market regulator in Africa.

Commencing in 2023, the strategic plan outlines five overarching goals and encompasses 60 initiatives designed to fortify the SEC's role in the financial landscape.

The goals include deepening and expanding markets, enhancing market awareness and education, building the capacity and capability of the SEC, strengthening market infrastructure, and developing a robust legal and regulatory framework.

The official launch took place during the SEC's Ghana Capital Market Conference, a significant event marking the Commission's 25th anniversary. The conference focused on the theme “Deepening and Diversifying Ghana's Capital Market Towards a more Resilient Financial System.”

In his address, Minister Ofori-Atta emphasized the pivotal role of the capital market, contributing approximately 14% to the Gross Domestic Product (GDP) and impacting around 10 million people in the country.

He underscored the government's commitment to implementing targeted policy initiatives aimed at diversifying the investor base, reducing external dependency, and fostering broader market participation.

The Finance Minister highlighted initiatives, such as the development of a framework for domestic credit rating agencies, aiming to provide impartial assessments of companies and securities. These measures align with the broader objective of ensuring a more positive impact on the economy.

Reverend Ogbarmey Tetteh, the Director-General of SEC, acknowledged the evolving financial landscape and the unique challenges it poses to capital market stakeholders.

He stressed the need for financial markets to evolve, innovate, and develop versatile investment products to navigate the changing environment successfully.

Over the past five years, the SEC has introduced 22 guidelines, enhancing the resilience and robustness of the capital market. Tetteh outlined upcoming guidelines on crowdfunding, green bonds, financial resources, market making, margin trading, securities lending, borrowing, and asset-backed securities, all contributing to market resilience.

The Commission has already initiated the implementation of a Risk-Based Supervision framework, marking a strategic shift from the compliance-based supervision mode of operators.

Established in September 1998, the SEC underwent a name change from the Securities Regulatory Commission to the Securities and Exchange Commission in 2000 (Act 590).

The Securities Industry Act, 2016 (Act 929), further expanded the SEC's powers, replacing the previous Securities Industry Law, 1993 (PNDCL 333).

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