SEC issues new minimum capital requirement for operators.

The Securities and Exchange Commission (SEC) has issued new operating guidelines and a corporate governance code that will regulate the capital market and enhance confidence in the sector.

The new directive is in accordance with Section 209 of the Securities Industry Act 2016, (Act 929).

The guidelines include licensing requirements for market operators, regulatory sandbox licensing requirements and conduct of business guidelines.

According to a statement by the SEC, the move is in line with its mandate of regulating and promoting the growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected.

Per the new guideline, a primary dealer will require a minimum capital of GHc400 million before it can operate, whilst fund managers will need a minimum capital of GHc2million to operate. A custodian will have to run a business with a minimum capital of GHc50 million.

Others are clearing housing (GHc50 million), Broker-Dealer (GHc1.5 million), Registrar (GHc1 million) and Securities Depository (GHc50 million).

The new minimum capital requirements for market operators are expected to be in full force by end of next year.

Existing market operators are also expected to be fully compliant by the end of 2021. New entrants would be required to meet the new requirements immediately.

Below is the list of licensing requirements towards the new directive


Regulated activity                                                         Minimum capital (GHC)

Broker-Dealer                                                                      1,500,000

Clearing House                                                                    50,000,000

Credit Rating Agency                                                          1,000,000

Custodian                                                                             50,000,000

Fund Manager                                                                     2,000,000

Investment Adviser (Corporate)                                        1,000,000

Investment adviser (Individual)                                         200,000

Issuing House                                                                      1,000,000

Margin Trader                                                                     2,000,000

Market Maker                                                                     3,000,000

Nominee                                                                             1,000,000

Primary Dealer                                                                   400,000,000

Registrar                                                                             1,000,000

Securities Depository                                                        50,000,000

Securities Exchange                                                          10,000,000

Trustee                                                                               50,000,000

Underwriter                                                                       2,500,000


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