ENSURING INVESTOR PROTECTION SEC OFFICIALNEWS NEWSLETTER OF SECURITIES & EXCHANGE COMMISSION 4TH QUARTER (OCT. - DEC.) 2020 45th IOSCO Annual Meeting HELD ONLINE Public Interest Warning To Investors Regarding Wiseline Online Investment Company Investor Protection Mandate of SEC 4th Quarter Market Summary Analyses & Highlights Key Market Statistics Infractions, Penalties and Complaints Received in the Fourth Quarter of 2020 “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett SECURITIES & EXCHANGE COMMISSION SEC NEWS 2020 TABLE OF CONTENTS 02 NOTICE TO THE PUBLIC Public Advice Public Notice 03 INTERNATIONAL UPDATES TThe International Organization of Securities Commissions (IOSCO) held its 45th Annual Meetings online. 04 KNOWLEDGE BANK The risk of losing money can arise from many types of financial transactions. This implies that financial markets have always been subject to compliance for rules and codes of conduct to protect investors and the general public, although in some cases, these rules have not always been enforced as robustly as they should. 06 ENFORCEMENTS Infractions, Penalties and Complaints Received during the Fourth Quarter of 2020. 09 FACTS & FIGURES - Assets Under Management (4th Quarter 2020) - Offers and Other Approvals - Capital Market Statistics and Analyses 13 MARKET SUMMARY ANALYSES & HIGHLIGHTS The Ghana Stock Exchange Composite Index (GSE-CI), closed at 1,941.59 points from 1,856.56 points recorded at the end of third quarter (Q3) 2020. This represents a -13.98% year-to-date (YTD) change compared to -17.75% YTD as at the end of September 2020. This indicates a slight improvement from the previous quarter. EDITORIAL TEAM 1. Dr Jacob Aidoo 5. Mrs Naomi Simpson 2. Mr Emmanuel Ashong-Katai 6. Ms Dorothy Yeboah-Asiamah 3. Mrs Marian Afriye-Opoku 7. Mrs Lilian Danso Affum 4. Mr Frank Biney Donkor 8. Mr Andy Anim Disclaimer: The views expressed in this Newsletter are the author’s own and do not necessarily represent the views of the Securities and Exchange Commission, its members or staff. DESIGNED & PRINTED BY: ISSUE 12, Q4 2020 1 SECURITIES & EXCHANGE COMMISSION SEC NEWS 2020 NOTICE TO THE PUBLIC 1. PUBLIC ADVICE Members of the general public are advised to use the Commission’s Toll-Free Line 0800100065 or Main Line 0302768970-2 to contact the Commission on any issue they may have relating to the securities market and investments, including: • Seeking general information about the securities market and products. • Seeking information about licensed capital market operators. • Reporting persons suspected to be operating in the securities market without a license. • Reporting fraudulent investment schemes (e.g. Ponzi schemes). • Reporting fraudulent activities of capital market operators. • Making complaints against capital market operators. 2. PUBLIC NOTICE PUBLIC INTEREST WARNING TO THE GENERAL PUBLIC ON ELECTRONIC COMMERCE AND TRADING SCHEME: NOTICE NUMBER: SEC/PN/001/01/2021 The Securities and Exchange Commission (hereinafter referred to as “SEC”) is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to promote the orderly growth and development of an efficient, fair, and transparent securities market in which investors and the integrity of the market are protected. One of the core functions of the SEC is to maintain surveillance over activities in the securities industry and to protect investors by publishing at regular intervals information to the public to inform their investment decisions. The General Public is hereby put on notice that WISELING ONLINE INVESTMENT COMPANY, a Finnish-based company operating in Ghana has not been licensed by the Securities and Exchange Commission (SEC) to carry out any Capital Market activity including investing or trading for returns as mandated by Section 3 of the Securities Industry Act, 2016 (Act 929). WISELING ONLINE INVESTMENT COMPANY is therefore not regulated by the SEC. The General Public is advised to be cautious with investing in unlicensed products. The General and investing Public is further advised to consult the SEC through its toll-free line number 0800100065 or main line number 0302768970-2 to confirm the licensing status of any firm offering products or services relating to investments in the Capital Market. The SEC wishes to reassure all Market Operators, Investors, and the General Public that it is dedicated to ensuring rigorous implementation of all the rules for operators in the Capital Market to promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected. This Public Interest Warning is issued pursuant to Sections 3 and 208(c) of the Securities Industry Act, 2016 (Act 929). IISSUED BY ORDER OF THE SECURITIES AND EXCHANGE COMMISSION DATED: 23rd February 2021 2 ISSUE 12, Q4 2020 SECURITIES & EXCHANGE COMMISSION SEC NEWS 2020 INTERNATIONAL UPDATES 45TH IOSCO 2. ANNUAL MEETING HELD ONLINE DOROTHY YEBOAH-ASIAMAH Manager, International Relations and Board Secretary issues in financial reporting, auditing Secretariat gave invaluable International Organization and disclosures. support and guidance for IOSCO’s of Securities Commissions sharpened focus on substantive (IOSCO) held its 45th iii The impact of COVID-19 on secondary trading market market and policy issues such as Annual Meetings online. asset management, crypto-assets, The meetings took place microstructure mechanisms, the operations of trading venues and unintended market fragmentation Ifrom 9th to 18th November 2020 and sustainable finance, thereby business continuity planning. and included virtual meetings enhancing IOSCO´s relevance to of the IOSCO Board, IOSCO´s Mr. Ashley Alder, Chair of the IOSCO both members and global securities Growth and Emerging Markets Board, in his remarks noted that, markets. Simultaneously, during (GEM) Committee, its four though the Annual Meeting was his tenure, IOSCO strengthened Regional Committees and the virtual, members made tremendous and expanded its capacity building Affiliate Members Consultative progress in addressing the emerging activities while increasing the Committee (AMCC), culminating risks arising from the COVID-19 collaboration among IOSCO members with the meeting of its Presidents pandemic and other critical matters on key policy issues. Committee. 480 members from such as climate change and financial 159 jurisdictions participated in stability issues. IOSCO had proven it Under Mr. Andrews´ leadership, the the event. could respond quickly and effectively General Secretariat also provided to events that could harm investors critical support to the IOSCO Board in and undermine market integrity. its endeavor to ensure that securities Among the issues discussed markets remained open and able to was the impact of COVID 19 on fund the real economy during the capital markets and other priority IOSCO Secretary General Paul market turmoil caused by COVID-19 issues facing securities market Andrews to end his tenure in Until Paul’s successor is appointed, regulators and supervisors. February 2021 his deputy, Tajinder Singh, would be acting Secretary General from the The IOSCO Board also agreed to The International Organization of Securities Commissions (IOSCO) end of February 2021. undertake further work on the following: announced that its Secretary General Paul Andrews would end his tenure i. Good practices or in February 2021. recommendations for audit committees on goodwill IOSCO reported that, under impairment. Mr. Andrews’ leadership, the ii. Potential valuation-related ISSUE 12, Q4 2020 3 SECURITIES & EXCHANGE COMMISSION SEC NEWS 2020 INVESTOR KNOWLEDGE PROTECTION BANKMANDATE OF SEC: 3. WHAT INVESTORS MUST DEMAND FROM LICENSEES BASED ON THE CONDUCT OF BUSINESS GUIDELINES 2020 (CBG, 2020) FRANK BINEY DONKOR Manager, Policy and Research, SEC may take many forms such as ensuring guidelines are designed to equip and he risk of losing that the financial firm or intermediary help investors and the general public to money can arise has sufficient information to be able make an informed decision regarding from many types of to properly advise the client, through investments. As the saying goes “A financial transactions. to selecting suitable investments smart investor is a well-informed This implies that to meet the client’s needs and investor”, Tfinancial markets have always undertaking transactions on behalf of been subject to compliance for clients in a timely manner. Thus, the In this issue, we shall focus on part five rules and codes of conduct to overriding requirement from financial of the CBG, 2020 which has the heading protect investors and the general intermediaries (licensees) is that they “Relations with Clients”. Section 2 public, although in some cases, conduct themselves in such a way (1) of the CBG, 2020 gives a general these rules have not always that they put the interests of the client requirement for the conduct of business been enforced as robustly as first over the demands of their firm’s as follows: they should.These were interests. A market operator shall; It was in respect of the above that, the (a) act with integrity and fairness; Commission (SEC-Ghana) issued the (b) apply due care, skill, and diligence in Following the financial crisis, “Conduct of Business Guidelines (CBG, the best interests of its clients and the regulators have introduced new 2020)” in October 2020 which derived integrity of the capital